INCOME TAX CASE.

Dominion, Volume 6, Issue 1590, 6 November 1912, Page 7

INCOME TAX CASE.

: —B-*-PREMATURE COLLECTION. 5y Tcleffraph—lTdsb Association-Copyright London, November f. Mr. justice Parker, of the High Court, has delivered Jiis reserved judgment in this. case brought by Mr. Thomas Gibson Bowles against the Governor of the Bank of England, 011 the subject of. income tax. Mr- Bowles hail asked for an injunction restraining the Bank from making an, unlawful deduction of income tax frahi .interest payable to liirn on <£G5,50Q. wortli of Irish Land stock. He submitted that the inconio tax could iiot bo deducted until the Finance Act for t.he year had been' passed by Parliament and said the Bill for the year 1912-13 Was., at the time .of ; the hearing, still before the Itouse of Coin-; mons.. His Loi'dsliip held that the bank was. not entitled to mako any deduction j-n the absence of statutory authority , for the assessment of collection of income .1 tax. The bank wp.s ordered to pay the costs of the action.. In opening hia case Mr. Bowles main- : .tallied that the Bank could not deduct the tax on A Parliamentary which Was merely a foreshadow o.f .an. A:ct of Parliament. The' only authority .tu levy any t.as whatever was to- be. found in aii Act of Parliaiiient which had passed both Houses and received the R<jyal Assent. Mr. Romer, K.C., for the Bank hf England, said, lie no interest in Hie constitntional ({uestipn. The Bank was willing that Mr. Bowles should .receive Jus money if his lordship inade an order which protected them.