LAN D TAX ASSESSMENT

Dominion, Volume 32, Issue 145, 15 March 1939, Page 13

LAN D TAX ASSESSMENT

Test Case Before Court Of Appeal

DECISION RESERVED In October, 1936, the Government reintroduced a method of increasing the graduated land tax that had been repealed by the Coalition Government at the time of the depression, the method which added a taxpayer’s leasehold land to his taxable land, so as to increase the graduated land tax paid by him.

The amendment Act was expressly made to come into force on April 1, 1936, and as land tax is payable in respect of land owned by a taxpayer on March 31, the question arose whether the amendment included land owned on March 31, 1936. ■ A large sum of taxation is involved in the question as a good many leaseholds are held by the larger taxpayers of New Zealand. A test ease was brought by the De Luxe Theatre Company, Ltd., before Mr. Justice Reed, in September last, who held that the amendment caught the ownership of laud on March 31, 1936. From that decision the company appealed to the Court of Appeal, and the case was argued yesterday morning before a Bench consisting of the Chief Justice (Sir Michael Myers), Mr. Justice Ostler, Mr. Justice Smith, and Mr. Justice Fair.

Appellants were represented by Mr. C. H. Weston, K.C., and Mr. R. St. J. Beere, and the Commissioner of Taxes by Mr. P. B. Broad. Decision was reserved.