INCOME TAX CASE.

Taranaki Daily News, Volume LIII, Issue 97, 2 August 1910, Page 5

INCOME TAX CASE.

j BOWRON. BROS. v. INCOME TAX. I By Telegraph.—Press Association. Christchurch, Monday. The appeal case William Bowron, George Bowron, and George John Smith against the decision of the Magistrate in the income tax case was taken at ihe J Supreme Court before Sir Robert Stout, . Chief Justice, and Justice Sim. adr. Stringer. K.C., with him Mr. Neave, for respondent, the Commissioner of Taxes. Mr, Stringer at once raised the point that the ground of appeal was not in detail, and contended that the Court had power to order appellants to set out the grounds of appeal more definitely. Mr. 'Russell amended tihe ground of appeal to make it read that the return furnished to the department was not false, or, if false, not made so 'with the (knowledge of appellants. Mr. Stringer, in opening the case, said the return at issue made by Bowron Bros, on November 0, 1906, showed the income for 1905 to have been £lB,8,36. At this time the firm had in its possession a balance sheet prepared by an accountant showing the net income .to be £52,418. Certain deductions were shown, but these were not permissible for taxation purposes, and the real taxable income was £64,972. Christchurch, Last NigM. Mr. Stringer continued that the return was in the handwriting of Mr,. Smith , and signed "George Bowron." He quoted I various discrepancies between that sup- ) plied 'to the department and the balance ] sheet prepared in view of the flotation of the company, which were in favour of the firm and against the department, to the extent of £35,000. When Mr .Tyere. , inspector for tlhe Department, was ini vestigating the books, Mr. Smith denied I that the balance sheet was in existence, but it was produced when tflie firm protested against the provisional assessment. Percy Howard Goodwin, formerly in the employ of Messrs. Bowron Bros., from 1904 to 1007, said he had never taken out a balance-sheet, and the cash book he kept <Md not contain sufficient information for the compilation of one. He did not get stock sheets or information as to capital. This concluded the case for. the Department, and the case is adjourned till j to-morrow.