INCOME TAX CASE.

Taranaki Daily News, Volume LII, Issue 219, 21 October 1909, Page 3

INCOME TAX CASE.

iX APPEAL BY -BDRTIIWICK AND SONS. By Telegraph.—rress Association. Wellington, Last Night. The full liencii of the Supreme Court to-day took the ease Titos. Borthwick and Son- (Australasia) v. the Commissioner of Taxes. Appellants were called upon by the Commissioner to furnish returns for the three years ending September 30, 1!)0S. but did not do so and were assessed on sums of £27,4!)1 up t0.£05.225. Appellants objected but lost their ease before the Magistrate at Christchureh. and now appeal on the. grounds that there were no profits derived from Xew Zealand in those years, and that it was proved the transactions on which tile assessment was based were sales within Xew Zealand. Other technical objections also raised were Irascd on various sections of the Land and Income Act. Mr. Iljsking. K.C., and Mr. Harper appear for the appellant and Mr. Stringer, K.C.. and Mr. Myers for the respondent,

Wellington, Last Xight.

In the Horthwick case, Mr. Ilosking contended that the only income taxable was the difference between the cost >■ New Zealand plus freezing, etc., charges, and the value of the carcases ready for shipping. Mr. Stringer said that was all the Commissioner claimed, but he would never get the return. The Court adjourned the case to see if an agreement could be arrived at, but this failed, and Mr. Hosting went on to argue that the Commissioner had no power to assess appellants, but that if he did under section 19, a Magistrate could reduce it below five per cent, of the gross proceeds. Mr. Stringer admitted this, and Mr. Hosking said that was all they -were fighting for. Mr. Stringer stated that no assessment -would have been made if the returns had been sent in.

The Court expressed the opinion that there was an appeal from the assessment, and the Magistrate could reduce it if the appellants showed the profits were less. The Court adjourned consideration of what order should be made till to-morrow.