TAXATION CASE

Waikato Times, Volume 127, Issue 21226, 24 September 1940, Page 4

TAXATION CASE

HAMILTON COMPANY APPEAL COURT HEARING DEDUCTIONS FROM RETURN (By Telegraph.—press Association) WELLINGTON, Tuesday A dispute concerning taxation assessments between the New Zealand Dairy Farm Mortgage Company, Limited, Hamilton, as appellant and the Commissioner of Taxes as respondent is occupying the Court of Appeal. Shortly after its incorporation in January, 1936, the company, with a view to obtaining money for relending on mortgage, raised £50,000 by the issue of debentures, and during the financial year ended March 31, 1937, granted applications for loans to the value of £158,817. The reserve fund required to be constituted in respect of this amount of advances was £3176 6s lOd, and this was constituted by cash payments, £468 6s lOd, and additions to mortgages, £2708. The balancesheet for the financial year ended March 31, 1937, shows that the amount standing to the credit of the reserve fund alter payment of certain expenses was £3lll ls lOd. Omitted From Return In its income lax return for the income year ended March 31, 1937, the company deducted or omitted from its assessable income this sum of £3lll ls lOd, and also £339 5s brokerage incurred on the issue of the debentures and £263 4s 7d printing, advertising and legal expenses in connection with the debentures. The Commissioner, not agreeing to these deductions or omissions, stated a case for opinion in the Supreme Court, and the case has now been removed into the Court of Appeal. Argument is proceeding. __