LIABILITY TO TAXATION

Dominion, Volume 14, Issue 272, 11 August 1921, Page 8

LIABILITY TO TAXATION

DOCTOR V. COMMISSIONER. The question of liability to pay income tax on the part of Dr. George Edward Anson, of ’Wellington, was the basis of an appeal made by him against tho Commissioner of Taxes, heard in the Supremo Court yesterday before Honour Mr. Justice Sim. ’ The facts of the case were: (a) That tho appellant was for several years tho | owner of a. sheep station near Hunterville; (b) that in making returns of income to the Land and Income lax Department lie adopted a standard value for his stock; (c) that the value of the stock on hand at the date of each annual return. (June 30 in each year) was* shown as follows: —1915, £3447; 1916, £3655; 1917, £3G33; 1918, £3916; 1919, £3776; and (d) that ; n June, 1919, the appellant sold his station, and in July, 1919, sold all the stock thereon for tho sum of £96,50. The appellant claimed that the difference between tho amount tho stock ioalised on sale (£9650) and the standard value (JJ3776). being £587-1, was merely an increment of capital brought about by the gradual improvement of stock by careful breeding and selection, and was not assessable for income tax. The commissioner contended that the sum of £5874 was income derived from tho business of the appellant as a station owner during the year enanig March 31, 1920, and stated that ho had assessed and demanded income tax thero°n,i'he question for the Court to decide was whether the sum of £5874 was an accretion to capital or income assessable for income tax for tho year ending March, 31, 1920. The case was stated by the Commissioner of Taxes under seetion 30 of the Act. . . The Court reserved decision.