WHAT IS "GROSS INCOME?"

Taranaki Daily News, Volume LVI, Issue 11, 13 June 1913, Page 8

WHAT IS "GROSS INCOME?"

AX INTERESTING DECISION. ' Auckland, .Tunc 11. Mr. Justice Cooper delivered judgment this morning in the case of fi. T. Yates and A. It. Crane, against (1. T. Yates and ol hers, an application for an originating summons for a declaratory order determining certain questions arising upon the construction of the wjllW Annie Vales, late of I'arengarenga. . Tint- judgment was very lengthy. It stnted that the only question' upon which there was any controversy was whether the trustees were entitled to £2 10s per cent, upon the gross recepits am! takings in connection with the gale of <lores and of gum in the business,, her.ire any deduction was made either for the cost price of the stores and the irnm to the trustees, or for working and general expenses. The answer, his Honor, said, depended upon a reasonable construction of the clause providing that trustees "shall be entitled to a commission of £2 10s per cent, upon all of the gross income of my estate received by them." His Honor was of opinion that ''gross income" did not mean "gross receipts," bnt the gio-s gain resulting from the busiposs, and the moss income from the rest of the estate without deducting the expen-, ses of the management of the estate Of Ot the business, or any of the general expenses .;f the estate or of the butf-

"Hie term income means," said His Honor, 'as applied to commercial business. the balance of gain over loss. The cost price of tile stores and the «nm must be deducted before the «ross income from the store and was ascertained. The balance was flic gross income of 'the business. Workin™ and general expenses were not to be doUncled. ,