Annuity Beneficiaries Dispute Tax Liability

Taranaki Daily News, 27 August 1942, Page 2

Annuity Beneficiaries Dispute Tax Liability

Press Assn.

Christchurch, Aug. 26.

lssues not Deiore raiseo in uie aupreme Court were argued to-day before Mr. Justice Kennedy in a summons to determine questions under the will of the late A. S. Paterson concerning the liability of the Guardian Trust Executors Company to pay income tax on annuities bequeathed. The testator gave annuities to his daughters and others free of income tax, pnd the court was asked to decide whether the rate at which the trustees should pay was that which would apply . if the annuity was the beneficiaries' sole income of a higher rate corresponding to the addition of the beneficiaries' perfonal income. The court was also asked to decide whether the estate must pay tax at the higher rate where the position was affected by the husband's income. Other points raised were whether free income tax implied freedom from national and social security taxes, and, finally. because three of the annuitants live abroad, whether the estate must pay tax in the countries of residence as well as in New Zealand.