TAXATION ASSESSMENT

Evening Star, Issue 23689, 24 September 1940, Page 6

TAXATION ASSESSMENT

CASE TAKEN TO APPEAL [Per United Press Ass^utiox.] WELLINGTON, September 24. A dispute concerning taxation assessments between the New Zealand Dairy Farm Mortgage Company Ltd., of Hamilton, as appellant, and the Commissioner of Taxes as respondent is occupying the Appeal Court. Shortly after incorporation in January, 1936, the company, with a view to obtaining money for relending on mortgage, raised £50,000 by the issue of debentures, and during the financial year ended March 31, 1937, granted applications for loans to the value of £158,817. The reserve fund required to be constituted in respect of this amount of advances was £3,176 6s lOd, and was constituted by cash payments of £468 6s lOd and additions to mortgages of £2,708. The balance sheet for the financial year ended March 31, 1937, shows that tho amount standing to the credit of the reserve fund after payment of certain expenses was £3,111 Is lOd. r , . In its income tax return for the income year ended March 31, 1937, the company deducted or omitted from its assessable income this sum of £3,111 Is lOd, and also £339 5s brokerage incurred on the issue of the debentures, and £263 4s 7d printing, advertising, and legal expenses in connection with the debentures. The commissioner, not agreeing to these deductions or omissions, stated a case for the opinion of the Supreme Court, and the case has now been removed into the Court of Appeal. Argument is proceeding.