QUESTIONS FOR COURT

Dominion, Volume 35, Issue 282, 27 August 1942, Page 6

QUESTIONS FOR COURT

ill Of Mr. A. S. Paters< (By Telegraph—Press Association.) DUNEDIN, August 26.

Issues not before raised in the Suprenie Court were argued before Mr. Justice Kennedy in a summons to determine questions under the will of the late Mr. A. S. Paterson as to liability of the Guardian Trust Executors Company to pay income tax on annuities bequeathed. The testator gave annuities, to his daughters and others free of income tax mid the Court was asked to decide whether the rate at which the trustees should pay was that whieh applies if the annuity was the beneficiaries’ sole income or a higher rate corresponding to an addition of the beneficiaries personal income. The Court was also asked to decide whether the estate must pay tax at the higher rate where the position was affected by a husband’s income. Other points raised were whether free of income tax implied free from national, mid social security taxes, and finally, since three of the annuitants reside abroad, whether the estate mast pay the tax in the countries of residence as well as in New Zealand. Argument is proceeding.