IMPORTANT INCOME TAX CAS

Taranaki Daily News, Volume XLVII, Issue 8083, 12 April 1906, Page 2

IMPORTANT INCOME TAX CAS

I'M I'BESS ASSOCIATION. Wellington, April 11. ' The full Bench of the Supreme Court sat to hear the case of the Commissioner of Taxes v. Lovell & Christmas. Defendents are an English company, who send out to this colony agents who are engaged by defendants to enter into contracts to sell butter in England on 4 commission. Advances are made to dairymen by the Bank in different parts of the colony on a Letter of Credit of the London firm, operated upon by a member of the firm residing in New Zealand. The agents have only a commission Agency business, on a basis similar to that of the Now Zealand Loan & Mercantile Company, who sell wool, grain, etc., on commission in England. This company sells butter on the same basis. Mr Bellappeared for tho Commissioner, asking that the Court decree that tho Company must pay income tax on the profit it obtains from business doue in New Zealand. The defendant company contends that it only makes an advance in this colony on butter which it contracts to sell on commission whon it reaches London.