INCOME TAX CASE.

Auckland Star, Volume LII, Issue 158, 5 July 1921, Page 5

INCOME TAX CASE.

APPEAL BY BREWERS

FIGHTING THE LICENSING POLL. (By Telegraph—Press Association.) WELLINGTON, this day. The Court of Appeal was occupied this morning hearing argument in a case stated by the Commissioner of Taxes. The case arose out of a claim by Ward and Co., Ltd., brewers, Christenurch, that a sum of £2,123 3/11 expended by the company in fighting the 1919 licensing poll should be exempt from income tax. The company based its claim to exemption on the ground that the expenditure was legitimate and necessary expenditure to protect the company's revenue and enable it to continue its business, and that the expenditure was exclusively incurred in the production of assessable income. THE SUBJECT OF ASSESSMENT. At the hearing this morning Mr. Blair and with him Mr. Cook, appeared for the company, and Mr. W. C. M_cGregor, K.C., Solicitor-General, for the Commissioner of Taxes.

Mr. Blair (for Ward and Co., Ltd.) contended that the expenditure was necessary to put the point of view of the liquor party before the public. The expenditure was incurred for the purpose of assuring the life of the company. It was not, he said, capital expenditure.

Argument is proceeding.