Limerick’s Owner Has to Pay Income Tax on Prize Money

Sun (Auckland), Volume I, Issue 175, 14 October 1927, Page 1

Limerick’s Owner Has to Pay Income Tax on Prize Money

MR. KNIGHTS APPEAL FAILS IT has been estimated that the racehorse Limerick has earned in Australia for its owner, Sir. H. A. Knight, of Christchurch, the sum of about £20,000. As a sequel to that harvest, the Commissioner claimed a share of the prize-money. From this, Mr. Knight appealed on the ground that he ran the horse for sport and pastime. His appeal has been dismissed. By Cable,—Press Association.—Copyright.

Reed. 9.40 a.m. SYDNEY, To-day. XJEFORE the Court of Review, Mr. H. A. Knight, the owner of the horse Limerick, appealed against the amount of the assessment by the Commissioner of Taxation on his income for the year ended June last in relation to the winnings of Limerick and other horses brought by him to Sydney. Mr. Knight contended that he was not liable for the tax, as ’ the income represented prize moneys won by his racehorses, principally Limerick; that he was not carrying on racing as a business, but for a sport and pastime, and for the purpose of raising the standard of the sport. Monetary gain was never his purpose in connection with his horseracing. The commissioner claimed that the prize money and stakes were the profits of a business. The court dismissed Mr. Knight’s appeal.