INCOME-TAX CASE.

Auckland Star, Volume XXXV, Issue 36, 11 February 1904, Page 2

INCOME-TAX CASE.

Oiy Velegraph.—Press Association.) WELLINGTON, Wednesday. Mr. Justice Coopev has given ju<lg- j ruent in -in action brought against the i hastern LxUHi-ion Telegraph Company j in December la.-t by the Commissioner ] 01 Taxes to recover £S9O 17/. being income t:ix, at 1/ in the S.. on income received by deiendants during the 11 i nioc'h? ending March 31, 1901. In giv- j ins: judgment* His Honor said the main question for .consideration was whether j the income tax was property assessed by the plaintid - on the whole profit derived by defendants from messages over their cables originating in New Zealard, and whether the gross earnings of deiendants upon such messages must be limited to the 3d per word paid them at Nelson b_r the Sew Zealand Government, an.l the assessable profit ascertained by taking that limit as a basis, In Hi~ Hop.oi"- opinion thu basis on which the Eisso=«meni had been made by Ihe Comiuis-: oner must be sustained. The i-iaiiii of defendants that deprecation could r.oi be made good by reduction under trial head cou!d not be -:■ i<tainpii. Jiicijri;?ent was entered for Uie Corninission?r for the full amount, with costs on the highest >fale. This case was argued by Mr. \V. -T. Napier ani! Mr H. [). Bell, on behaif of the C'onjuiissK-ner of Taxes, and by Mr. SkerrfU and Ml. Weston. on behalf of the Hastern Extension Telegraph Company. The defendants intend to appeal to the Privy Council. The judgment is for an annuil tax on t lie company's prolit; oi i;.S!Mj ;;/. the r-onipany claiming that they were not liable to tax. as their profits on the New Zealand cables were insufficient.