A BISHOP’S INCOME.

Manawatu Herald, Volume XLII, Issue 2154, 24 July 1920, Page 1

A BISHOP’S INCOME.

LIABLE TO TAXATION,

The Full Court at Wellington heard on Thursday questions of law regarding the payment of income lax by the Archbishop of Wellington (Right Rev. Dr. T. H. Sprott). The Bench was occupied by the Chief Justice (Sir Robert Stout), Mr Justice Chapman, Mr Justice Herdman, and Mr Justice Sim. Mr T. F. Martin appeared for the Bishop, and Mr F. S. K. Macassey for the Crown.

The question at issue was whether the Bishop’s income is exempt from income tax. His income is received from gifts to the diocese and various funds, which are under the control of trustees. The ease was a friendly one between the Bishop and the Commissioner of. Taxes to determine the construction of the Land and Income Tax Act on the subject. The sillmission was

that the Bishop was the beneficiary of a fund that was exempt from tax-, at ion, and that, therefore, the income he received was exempt from taxation.

Mr Maeassey, in answer to a question from the Bench, said the Crown’s position was this: that the trustees were the beneficiaries p| the fund, and that under the Act they were exempt from income tax, but that the exemption did not extend as far as the Bishop’s salary,

The Chief Justice: “It would be exempt from income tax if he were j,he sole beneficiary?”

Mr Macassey: “Yes.” Mr Martin said the point they relied on was that the Bishop was the sole beneficiary of the fund which was created for the purpose of providing that there should be a Bishop of "Wellington. The Chief Justice held that the Bishop’s income was not exempt under the Act, which was merely designed to prevent double taxation. The trustees were exempt, but (hose who received the salaries paid from the (rust fund were not exempt. The other members of the Court agreed with the Chief Justice’s decision. ; laS