LAW REPORTS.

Dominion, Volume 5, Issue 1405, 3 April 1912, Page 3

LAW REPORTS.

COURT OF APPEAL. TIMBER COMPANIES AND INCOME TAX. When the Court of Appeal resumed fitting yesterday iiioiiiiiiy -Mr. Justice J>i;nniston aniuHiuci'd that the Cliii'f (Sir Kobert Stout) was i]idisi>o.-.«l. but on account of the picture of business the Court did not deem it advi.-ahl? lo adjourn, and tho two cases, in which joint 1 argument was being heard, would con- j tinue. 'i'ho bench was then occupied by j Mr. Justice Denni?ton, ilr. Justice Kdwards, and ilr. Justice Chapman. Argument was continued. In tho cases the Kauri Timber Co., Ltd., and the Taupo Totara Timber Co., Ltd., v. the Commissioner of Taxes (separate actions, tho points at issue being common ground ior argument). , Sir John Findlav, K.C., with him Mr. J. L. Stout, appeared for the Taupo Totara Companv, and Jtr. T. Cotter, K.C., of Auckland, with liim Mr. C. J. fcclvnauer, of Auckland, for the Kauri Timber Company. The Commissioner of Taxes was represented by the Solicitor-General (Mr. J. W. Salmond). Particulars of the cases were published yesterday. They had been removed from the Supreme Court to the Court of Appeal in order to have it decided what deductions sawmilling companies may make from the gross proceeds of their business when being assessed for income tax. i\ hen royalty is paid companies are allowed to deduct the amount of such royalty from the gross proceeds, and the question now is whether, when a lump sum is paid for timber Tights, companies may from year to year deduct the cost price of the timber" taken out. Le"al argument proceeded throughout the dav, and was still unfinished at 4.30 pm. The Court then adjourned until half-past 10 o'clock this morning.