LAW REPORTS.

Dominion, Volume 5, Issue 1447, 23 May 1912, Page 3

LAW REPORTS.

« COURT OF APPEAL. CROWN & THE LEVIN ESTATE. ANNUITY OF WIDOW. DECISION-IT CAN BE TAXED. Yesterday the Court of Appeal delivered judgment in tlio .action between Amy Levin, widow, of Netley Park, Gomshall, ■England (plaintiff) and the Now Zealand Commissioner for Taxes (defendant), 'f ho action arose on an originating summons to determino whether tho plaintiff is liable to bo assessed for income tax in respect of the annuity of ,£3OOO paid to her pursuant to'the will of W. H. Levin, deceased. The summons had been removed from on account of the importunce of the issue involved. V By his'will,'dated April' 22, 1391, the late. AV. H. Levin bequeathed all his estate .to his trustees until tho death of second marriage of his widow, making provision for a (dear annuity of to a relative, and lor J!8000 per annum to his widow, and the remainder to his four children. He died in 1893, and the trustees have since paid income tax upon the capital estate and upon revenue derived from lands and mortgages. In 1910 the Commissioner of Taxes demanded income tax for the first timo upon the annuity of ,£3OOO, and demanded it also for three years antecedent to 1910. It was paid under protest. In 1911 the sum of .£175 was demandas income tax upon the annuity, and again tho payment was made unde* protest. The trustees and the plaintiff (Mrs. Levin) contended that no income tax was payable by Mrs. Levin as recipient of income from the trust estate where the trust estate paid tax in full upon the properties from which such income was derived. On the other hand, the Commissioner of Taxes contended that an unregistered annuity, if and so far [is it was derived from or constitutes a charge upon the land or mortgages, was assessable for incomo tax. At the hearing, Mr. M. Myers (with him Mr. W. H. D. Bell) appeared for Mrs. Levin, and tho Solicitor-General. (Mr. .T. W. Salmond), for the Commissioner, of . Taxes. The answer of .the: Court of Appeal (as sot out in the. .judgments of tho Chief Justice, Mr. justice Edwards, and Mr. Justice Cooper), was in the affirmative. viz.: "The plaintiff is liable to be assessed in respect, of the unregistered annuity of ,£3OOO paid to her, pursuant to tho will of W. H. Levin, deceased." Judgment was therefore for tb.e defendant (the Commissioner of Taxes), with costs amounting to .£3O.