THE COURT OF APPEAL.

Press, Volume LVII, Issue 10786, 13 October 1900, Page 3

THE COURT OF APPEAL.

(PBESS ASSOCIATION" TELEGRAM.)

WELLINGTON, October 12. The Court reserved judgment in the case of the Commissioner of Taxes v the Bank of New Zealand. The case of Scales v Hickson was then commenced. This is an appeal from a decision of the Ohief Justice, who held that Scales, as agent, was liable for a license fee of £200 under section 7 of the Stamp Act, 1885, for the insurance of certain wool. The only evidence produced was a certificate of an open policy issued by Scales, and it is contended that this does not show him to be the agent for the insurer. Judgment was reserved.

The case Commissioner of Taxes v Bank of New Zealand, is a question respecting the taxation of land in the Poverty Bay district, for which the Hon. Mr Carroll and Mr Wi Pere are trustees. The lands are under mortgage to the bank, with the consent of the trustees. The bank has managed the properties with a view to their improvsment and realisation, ever since they were sold to the present trustees, as successors to the New Zealand Native Land Settlement Company. On these facts it is contended for the Commissioner of Taxes that the bank is mortgagee in possession, and liable to the land tax and graduated land tax in terms of the Land and Income Tax Act, 1892. In the alternative, it is submitted that the bank is tiie occupier of native land, and therefore liable to pay land tax, but no graduated tax. On behalf of the bank it is maintained that the bank is only an agent for the trustees, and as that institution is not liable for land tax, it cannot be charged at all.