FOREIGN COMPANIES AND MEDICINE TAX.

Auckland Star, Volume XXXVII, Issue 116, 16 May 1906, Page 5

FOREIGN COMPANIES AND MEDICINE TAX.

APPEAL COURT DECISION,

(By Tetegrapb.—Own Correspondent.)

WELLINGTON, this day

The Court of Appeal gave its decision this morning on an important question concern'ng the liability of foreign companies* doing business in the colony for payment of income tax. The case was poinmissioner of Taxes versus lyovell and Christmas, and the question v»s* whether or not the defendant company was liable to be assessed for income tax under the Act of 1900 in respeeit of profits derived by it.

TUie Cdurt said that if the company carrjed on a business in New Zealand thert coul4 be no question that it was liable to be assessed for income tax in respect of the profits. The question therefore, was -whether the company, which semt out agents to the colony each year to make contracts for disposal by the company of produce in London, carried on a business in New Zealand. The Court lipid that the defendant company was liable "to be assessed for payment of income tax in respect of profits derived by iz, from the transactions stated in the 'case, -and gave judgment for plaintiff for 5 £1500.. each side to pay its own costs. Leave to appeal to the Privy Council -was .given. ';."'