TAXATION APPEAL

Wairarapa Times-Age, 22 August 1942, Page 3

TAXATION APPEAL

SOME UNUSUAL FEATURES WAIRARAPA CASE. LONG ESTABLISHED PRACTICE UPSET. » A somewhat unusual position arose in the Supreme Court at Wellington on Thursday, when a taxation appeal was called before Mr Justice Smith. Mr P. B. Broad, counsel for the respondent, the Commissioner of Stamp Duties, intimated to the Court that the Commissioner had been advised that his position was untenable, and said that the appellants had been notified accordingly some eight days ago. Mr T. A. Cunningham (Masterton) counsel for the appellants, submitted that the appeal should be heard. The Commissioner’s attitude had forced the executors to the expense of a case and he should not be allowed to drop it just before hearing. The case concerned 'an assessment by the Commissioner of Stamp Duties of death duty payable in the estate of the late James H. Cameron, of Tinui, having regard t.o a credit for gift duty already paid. The objection of the appellants, the erecutors of the estate, to the assessment was based on the method of calculation of death duty payable; Mr Broad submitted that, since the respondent had admitted that the assessment could not stand, the hearing should not go on. In reply to a question from his Honour, Mr Cunningham said that the appeal. was in the nature of a test case, because for many years the Commissioner had followed a practice, now admitted to be wrong, under which it appeared tax in excess' of the amount due had been collected. His Honour: “You mean that if you get a decision in this case, a whole lot of other people will be able to proceed to get refunds?” Mr Cunningham: “That may be the effect, your Honour.” Mr Broad said that a practice adopted on the advice of'eminent counsel and followed by the Commissioner for thirty years had been upset. “I have no doubt that in future he will amend his practice and bring it into conformity with your Honour's decision,” Mr Broad added. His Honour said that the hearing need not proceed, but he would take time to consider the formal order that should be made and also the question of the costs to be paid by the Department. It appeared therefore, remarked his Honour, that it would be necessary for Mr Cunningham to get his clcisiori after all.