SPENT WAGE TAXES TO BUY RACEHORSE

Chronicle (Levin), 7 November 1947, Page 5

SPENT WAGE TAXES TO BUY RACEHORSE

Press Associaiton J

(Per

CHRISTCHURCH, Nov. 6. Both the Commissioner of Taxes and Kevin J. McMenamin, solicitor, elaimed possession of an amount of money seized by the bailiff from a Christchurch frock manufacturer, in a case lieard in the Magistrate 's Court today before Mr R. Ferner, S.M. Mr A. W. Brown ajipeared for the Commissioner of Taxes and Mr P. H. T. Alpers for Mr. JMcMenamin. Outlining the case, Mr Brown said that Tliomas Ions Fish, who had employed a number of servants, deductea taxes from his employees' wages but failed to buy wages tax stamps. Investigations made by an inspector oi the Inconie Tax Department showed that Fish had neglected to buy wages tax stamps over a period of years and altogether had failed to account to the commissioner for wages tax amounting to about £680. Fish decided to purchase a raeehorse and some time ago paid £105 for an animal. Mr McMenamin, who tv as owed approximately £50, obtained judgment against Fish and issued a warrant of distress, and Fish 's raeehorse was seized by the bailiff who sold the raeehorse for £95. On learning of this tlie Commissioner of Taxes notified the bailiff that he elaimed the proeeeds by virtue of a charge given him by section 119 of the Social Security Act 1938. The bailiff, not knowing what to do, interpleaded and asked the Court to deeide to whom the money should be paid. Mr Brown said the section provided that in any case where the tax deducted from any salary,wages or other income was not held by the employer or his deputy so as to be distinguisliable from other money held by him, it was a charge 011 all the real and personal property of tiat person. Every charge created a priority over existing or subsequent niortgages and other encumbrances. Mr Brown submitted that as the Commissioner of Taxes, under section 119 of tlie Social Security Act, was gix:;eu charge over all real and personal property of a person who had deducted wages tax and had failed to account for such taxes, he ; had a valid charge over the proeeeds of the sale by the bailiff. Mr Alpfirs submitted that all of the requisites of the charge had not been proved and that the Social Security Act, although it gave tlie charge, did not provide any machinery by which it could be enforced. Mr Brown submitted that all the requisites had been proved. The charge given the Commissioner of Taxes implied the righ't to enforce it. Reserving his decision, the Magistrate said there was some donbt as to whether there was, in fact, such q charge in the particular circumstances,