Interpreting the Australian Income Tax Definition of 'Ordinary Income': Ritual Incantation or Analysis, when Examined Through the Lens of Early Twentieth Century Linguistic Philosophy?

Abstract

This article examines the interpretation of subsection 6-5(1) of the Income Tax Assessment Act 1997 (Cth). The High Court of Australia has concluded that subsection 6-5(1) should be understood upon the basis that it adopts some or all of the elements of the oft-quoted dictum of Sir Frederick Jordan in Scott v Commissioner of Taxation. The article shows that different decisions of the High Court of Australia have adopted different statements of the elements of the dictum that ought to be referred to, and some decisions of the High Court have ignored the dictum altogether. Moreover, no High Court decision has analysed the statement of Jordan CJ. This article addresses this absence of analysis ..