Profit Was Not Taxable

War Assets Pty. Ltd., formed after the war in Melbourne by Jonn Wren interests, took over war disposals material from Vacuum Oil Co. at Milne Bay, Papua, through a Papuan Co. called Milne Bay Merchants Pty. Ltd. The enterprise was operated by the latter Co, From this, War Assets Pty. Co.' eventu ally made a profit of £78,767; and Australian Taxation Dept, wanted to tax this. War Assets objected, claiming the profit was made in Papua, and was clear of tax. The case eventually got to the Aus tralian High Court, and the latter ruled that the profit was free of tax —a very important judgment for some Australian concerns with in-r terests in Papua and New Guinea.