INCOME TAX APPEAL.

Taranaki Daily News, 5 October 1921, Page 5

INCOME TAX APPEAL.

CASE INTERESTING TO FARMERS. By Telegraph.—Press Association. Wellington, Oct. 4. The Full Court is hearing argument in the case of Dr. G. <E. Anson, of Wellington. medical practitioner, against the Commissioner of Taxes. Appellant was foi several years owner o f a sheep station near Hunterville, and in making up his returns of income he adopted a standard value for his • stock in 1915. This standard value was £3447, and in 1919 £3776. In 1919 appellant sold his stock for £9050. Appellant claimed that the difference between the amount the stock realised on the sale and the standard value was merely an increment of capital value brought about by the gradual improvement of the stock by careful breeding, and was not assessable for in-come-tax. The Commissioner claimed that the sum was assessable.

Mr. Cooke, for the appellant, contended that the facts showed that at no time did the appellant carry on the business of dealing in sheep or cattle, therefore any appreciation in the value of the stock was an accretion to the capital and was not liable to income-tax. Wellington, Last Night.

The Full Court has concluded the hearing of argument in the ease of Anson versus the Commissioner of Taxes.

Mr. Macgregor, K.C., Solicitor-General, stated that the business carried on by appellant was simply that of an ordinary New Zealand sheep station. Appellant had, he said, adopted a standard of value for his stock and had treated it in the same way as a merchant treated his stock in trade, and by so doing he had in past years obtained deductions from income tax. The contention of the Commissioner of Taxes that the difference between the standard value and the value at which stock was finally sold was assessable for the purposes of income tax was, he maintained, correct.

After Mr. Cooke replied, the Court re served its decision.