AN APPEAL ALLOWED.

Hokitika Guardian, 3 May 1923, Page 4

AN APPEAL ALLOWED.

land and income tax case. WELLINGTON, April 30. The Court of Appeal gave judgment this morning in the case of Alacfarlano v. the Commissioner of Taxes, which was argued before the Court in October. The majority of the Court, consisting of the Chief Justice, and Air Justice Stringer 'and Air Justice Adams weie of the opinion that the appeal should !;:■ allowed. Air Justice Salmond and Mr Justice Hushing dissented. The result is that both assessments of the Commissioner of Taxes are cancelled. , Costs were allowed the appellant oil i the highest scale. The Solicitor-!. 011J era) was granted additional leave to i appeal to Lhe Privy Council.

A case hail been stated for the Court under sections 35 of the Laud and Income Tax Act. DIG, and the questious involved were: (1) Is the Commissioner entitled to treat as income the difference between the standard value of flocks and herds (as agreed upon by the taxpayer and the Commissioner) ami the actual market value of the same flocks, and herds at the time of the taxpayer’s death? or (2) alternatively, if the Commissioner is not entitled is he entitled to treat the

transfer to beneficiaries as a sale or disposition within the meaning of the Land and Income Tax Act? •AH- Andrews appeared for the appellants and Air AfncGrrgor, SolicitorGeneral. for the Commissioner of Taxes. Air Andrews contended that the Cunii missioner was tied to the standout value at the dale of death. On testator’s death all his properties passed as capital to the beneficiaries. They to >k stock in specie, and the distribution among the beneficiaries was not a sale or disposition within the meaning o’ the hand and Lome Tax Act. Air Fair, for the Commissioner ul Taxes, said that the increase in the value of stock above standard value was when it it as realised profit or tax purI pn-.es. In a ll v ease there had been, a disposition or sale of stock within the meaning of the Land and Income lax Act.