TAXING AN ANNUITY.

Stratford Evening Post, Volume XXXIII, Issue 5, 3 May 1912, Page 5

TAXING AN ANNUITY.

APPEAL COURT CASE

(Per Press Association.)

Wellington, May 2. In the Court of Appeal, the Chief Justice (Sir Robert Stout) and Just:ces Edwards and Cooper sat this afternoon to hear argument in the case of Levin v. the Commissioner oi Taxes. The question for the Court's consideration is whether the plaintiff, "Mrs. Levin, is liable to be assessed for, and to pay income tax in respect of an annuity of £3OOO paid to her pursuant to the will of W. H. Levin deceased. The contention of plaintiff is~ that no income tax is payable by her as the recipient of revenue from a trust estate where the trust estate pays the tax in full upon the propert es from which such revenue is derved. The Commissioner of Taxes contends that an unregistered annuity, if and so far as it is derived from or constitutes a charge upon land or iro'tFao'cs, is assessable for income tax -THO annuity is a charge upon a trust estate, which now consists ot moneys invested on mortgage or ot cash ' The trustees in each year have paid the mortgago tax and income tax upon the revenue received otherwise than for mortgages. Tho annuity is not registered under any Act relating to the registration of deeds or instruments affecting a title of land, except so far as such registration may result from the registration of probate under the Property Law Act or Land Transfer Act. Messrs. M. Myers and W. H D. Bell appear for the plamtuT, and the Solicitor-General for the Commissioner. Argument was not concluded when the Court rose.