AN INTERESTING CASE.

Wairarapa Age, Volume XXXII, Issue 10283, 11 July 1911, Page 5

AN INTERESTING CASE.

BEFORE THE COURT OF APPEAL. . By Telegraph—Fr ess Association. j * WELLINGTON, Last Nidit. The Court of Appeal, consisting of the Cliief Justice, and Justices Williams. Denniston, Edwards and Sim, sat this morning tc hear an originating aimrnons which had been moved into the Court of Appeal for argument bebetween Mr G. F. Donnelly, of Hawke's Bay, and the Commissioner of Taxes. The question for the Court's consideration arose in connection with the interpretation of Section 56 of the Land and Income Assessment Act, 1908, and are: (1) Whether the right of occupation 'given by the will of his wife to the plaintiff is a leasehold estate in land within the meaning of the said Section; (2) whether the right of occupation given him by an agreement with the Trustees of tho will is a leasehold estate, (3) whether, when the land is owned in common by Eurqpeans and Maoris, a leasehold estate granted by such European to Ja;European in respect of the individual interest of the lessor is exempted from taxation under the said Section as being leasehold estate in Maori land within the meaning of sub-section 3 of the said section. By her will, the testatrix devised to her husband (plaintiff) all her interest in the' Waimarama blocks, subject to certain conditions. These condition's were not fulfilled, and the plaintiffs present occupation is by agreement with the Trustees until they (should acquire possession thereof for the purposes of sale, subject to tiio payment of interest on certain mortgage moneys secured on the properties. The plaintiff was also entitled under the will to the use and occupation, rent free, of all lands of the testatrix not leased to others. These ar% tho lands referred to in question one, and the Waimarama blocks are the lands referred to in. question two. Messrs H. D. Bell, K.C., and Lewis, appear for the plaintiff, and the SolioitorGeneral for the Commissioner .:" of Taxes. Mr Bell, in his opening argument, stated that tlie importance of the oase to the plaintiff lay in the fact that, if the Court held that plaintiff's right to the use and occupation was leasehold _ within. tQio meaning of section 56 of the Land and Income Assessment Act, 1908, the value of the leasehold estate would ibe added to the value of the other properties held by plaintiff ■when assessing tlie graduated land tax. He contended that only real leasehold was contemplated by tihe Legislature under this section, and not mere occupation for an indefinite term, and he proceeded to cite authorities in support of this proposition. The Solicitor-General said the purpose of the graduated land tax was to impose heavier taxation upon .holders of large estates. That Act was intended to tax persons in pos>session of land under any title whatever, and included lands held under the right of occupation. At the conclusion of the Solicitor-General's argument, Mi- Bell briefly replied. The Court reserved its decision.