APPEAL SUCCEEDS

Waikato Times, Volume 129, Issue 21582, 19 November 1941, Page 4

APPEAL SUCCEEDS

SOLDIERS INCOME TAX GIFT MADE BY EMPLOYERS AUCKLAND, Tuesday Mr Justice Fair today allowed the appeal of an Expeditionary Force soldier against an assessment of in-come-tax on an allowance paid by the soldier’s firm. The appellant was Neil Melville Louisson, of Auckland (Mr H. P. Richmond), formerly a director and salaried officer of Fairburn Wright and Company, Limited, and now a lieutenant abroad with the New Zealand Expeditionary Force. The Commissioner of Taxes was represented by Mr G. S. R. ! Meredith. ; Mr Richmond said appellant was | in receipt of a salary of over £IOOO ! a year, and in the six months from ; the date of his enlistment on October i 1, 1939, to the end of the taxation year the company paid him £453 to make up the difference between his previous salary and his military pay. The company claimed a deduction of £4 a week, or £lO4. from its assessable income and the appellant contended that £453 less £lO4, or £349, was a gift to him from the company. The company paid tax on the £349. The commissioner having taxed the company on the allowance to appellant then again taxed him on the same amount. His Honour said the commissioner based his claim on the ground that this payment was made to appellant in respect of or in relation to his employment or service. It seemed that the payment was not made in respect of employment but out of a sense of appreciation of public spirit shown. There was nothing to satisfy him that the £453 was not paid as a single gift at the discretion of the i company. His decision was not to be regarded as being of general apj plication, except in so far as it dealt with payment of a lump sum. Garden Tarty A garden party is being held at Mrs H. Valdei’s residence. 81 River Road* tomorrow (Thursday) afternoon t , raise funds for the Melanes- ; ?n mission. Owing to the war having stopped the annual contribution :r°m the headquarters in London the income of the mission is now dependent on New Zealand and Australian sources. This reduction in income has compelled the mission to lay up their steamer, the Southern Cross, wl ich was t:ie main connection between the Melanesian Islands. Sydney and Auckland. The mission has also found it necessary to reduce its staff to skeleton proportion as well i - its expenditure in other directions. Bishop Baddely has recently published his annual report, in which he eloquently describes the difficulties under which the mission is : u\ cly endeavouring to carry on ib, wuxk*