LAW REPORTS.

Dominion, Volume 2, Issue 571, 28 July 1909, Page 11

LAW REPORTS.

SUPREME COURT. , A WIDE, VAGUE QUESTION.' VjTSAT ARE "BUSINESS PREMISES"?' Before tho Full Court yesterday, their Holiours Justices Denmston, Edwards, and Cooper,' on tho Bench, an appeal from a decision of tho Stipendiary Slasistrato at Invefcargill was hoard in regard to tho assessment of income tax on tho Nightcaps Coal_ Company, Limited. An objection, laid under' Seetlonl 22 £ tho Land and Income Assessment Act, 1908, .had been taken before Mr, 6 , Cruiekshank, S.M., at Invorcargill, by the? company, in reference to tho absessmont of income tax for tho year ending March 31, 1908. Tho Magistrate held that under Section HD of tho Act of 1908, the company was entitled to doluct (in assessment of income tax) fivo por cent, of tho value of its'coal ' measures, plant, maclnnciy, and buildings as ."business promises." The company, therefore, claimed a deduction of five per cent. on'=Clo.7ls. An appeal was mado by tho Commissioner of cTaxes against tho decision , of th 6 Magistrate *Mr u M Myers appeared for tho appellant, and Mr. C. S. Longuet (of Invercargill) for tlto cdnl company. Mr. Justico Cooper/ (aftor argument): Business premises aro the offices in tho various centres. A company may conduct its business on the high seas, but tho high seas or.b'ndt its business premises. i Mr.,Mjcrs replied that,, after the passing of,tho, Act of 1907, tho company was liable for (l)'land tax ( on tho bard unimproved value or agricultural value of the surface of the'land, an 3 (2)' incomo\tax on its profits from tho . i working of tho coal. The bare unimproved vajuo was brought out at £1814, and the .difference between that amount and £10,000 ' gave the value of tho minerals ,If the company, instead of working its property, had lerised it to somebody else, it would luvo had to'payi incqme tax on tho rental Prior to tho :Act of 1967, it would not havo had to ' do lv thal Immediately'after tho passing of tho Act, tho company set up its claim to deduct fivo per cent, on tho value cf its plant, buildings, etc., on tho ground that theso constitutor! "business premises" within Section 0 of tho' Act of 1903. Mr. Longuet contended that the place of business of tho company was at Nightcaps Contracts wcro made in a small office, rented at\a nominal figuro, in Invercargill, some milcSjfrom tho works. , Mr. Justico Cooper referred to the Napier Trailing .Company. "Could i it bo said that its.ftlnco of business was on'tho trawlers on the,high seas?" ho asked. Sir. Longuet quoted tho caso of the Kauri Timber Company, whoso mill sites were exempted. , ',?But not their bushes,',' said Mr. Justico Coop'oi. , > ' Mr. Justice Edwards- And how do you explain tho position of tho bookmaker? His i is apparently an honourable calling, a licensed vocation, and ho js therefore liable for tax. His business premises arc nil tho .cduntry, whorover v he can find a foolish inaii'W b9 swindled. Would you say thai' his business premises,aro only on tho_ racecourse, and not on every street corner" in,the' country' i ' Sir. Longuet: The bookmaker may como " trade? tho teim "adventure." "Ho'is as assfessiblo as a solicitor," said Mr.. Just'co Edward 3 '■> • _ ( Mr. Lonsuet. Tho bookmaker has obviously no'Milace of business ho can call his own. , Sir, Justico Denmston uHo need only lease 1 an old biscuit box. , \ • Sir .'Justico Edwards: Tho;> bodkniaker ' would bomo under Section SO, which speaks of a ,','p'ofcssion " ' "Then, I hit upon it correctly," said Sir. Jil3tiiio'Denmston, ','a vocation—tho calling , of o'lds " rS'lFjjou said that ungottcn coal .constituted "business premises,' " remarked Sir JuStico Edwards,,"you would'be«lahS;hedat " Mr. Longuet remarked that'tho buildings of "merchants were regarded as "business pre- • nnse^ 1 -', why not then apply tho term also to' miles of tunnelling, which were really "buildings under tho surface of the ground ? Tho Couit expressed the opinion that, as tho i case would mvolvo a number of other paittcs, it would bo advisable that tho reasons for the judgment t should bo put m vritidg. ,\ ,