5809.
باسيليسيا
Mr LORD,
No. 206.
(SOUTH AUSTRALIA.)
LAW OFFICERS to COLONIAL OFFICE.
We were honoured with your Lordship's commands, signified in Mr. Bramston's
Royal Courts of Justice, March 20, 1891. letter of the 20th ultimo, stating that he was directed by your Lordship to transmit to
us a copy of a despatch from the Earl of Kintore enclosing a case stated in the Colony 5 Jan. 1891.
on the question whether the Governor of South Australia was liable to pay income tax
on the amount of his official salary, with copies of the enactments bearing upon the
subject.
That your Lordship would be glad to be favoured with our opinion on the question
submitted in the case.
We have taken the matter into our considoration and, in obedience to your Lordship's commands, have the honour to
Report
That in our opinion the Governor of South Australia is liable to pay income tax on the amount of his official salary.
(Signed)
The Right Hon. Lord Knutsford,
&c.
&c.
&c.
We have, &c.
RICHARD E. WEBSTER. EDWARD CLARKE.
PUBLIC RECORD OFFICE
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C.O. 8
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CASE FOR THE OPINION OF THE CROWN LAW OFFICERS IN ENGLAND.
A question has arisen as to liability of the Governor of South Australia to pay income tax in that Colony on the amount of his official salary which it has been agreed shall be referred to the Crown Law Officers in England for decision.
The enactments bearing upon the subject are:-
"The Constitution Act" (No. 2 of 1855–6),
The Governor's Salary Act, 1866 " (No. 28 of 1866-7), and
"The Taxation Act” (No. 323 of 1884). Copies of these Acts are sent herewith. Section 38 of the Constitution Act secured that there should be payable to Her Majesty every year out of the Consolidated Revenue 13,500l. for defraying the expenses of the services and purposes set forth in the schedule marked A. One of the items in such schedule is "salary of Governor, 4,000l.”
The salaries of the judges and other high officials are specified in the same schedule. The Governor's salary was increased to 5,000l. a year by the Act No. 28 of 1866–7. It is a recognized practice in Colonial legislature not to diminish the Governor's salary during the term of his administration. He is induced to accept his office after a consideration amongst other matters of the emoluments attached to it, and it would be manifestly unfair to reduce those emoluments on the faith of which he has accepted the appointment.
The Taxation Act was passed towards the end of 1884, Sir William Robinson, the then Governor, having commenced his administration early in 1883. Sir William contended that the Taxation Act was not intended to extend to the Governor's salary, and that it would be a breach of faith to reduce it by the amount of income tax imposed by the local Act. He, however, paid the income tax assessed on his salary on the understanding that the amount should be refunded if his contention were supported by the Crown Law Officers in Englaud.
The Earl of Kintore, the present Governor, who came to the Colony in 1889 has also paid income tax on the same understanding.
In addition to the agreement above mentioned it is submitted on the Governor's behalf that his salary is included in an amount expressly reserved to Her Majesty, and no mention being made of the Queen in the Taxation Act the Crown and the amounts reserved to the Crown are not affected by it.
K 654 3.--9. 25.--1/91.
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