Overseas securities sales taxable

Press, Volume CXII, Issue 32860, 8 March 1972, Page 3

Overseas securities sales taxable

(New Zealand Press Association)

WELLINGTON, March 7.

Profits on the sale in New Zealand of overseas securities were assessable for tax purposes, Mr Justice Haslam ruled in a judgment delivered today in the Supreme Court.

The judgment was in favour of the Commisisoner of Inland Revenue in a case stated upon objection by two taxpayers. The objectors were Mr Duncan Holden, fanner, of Havelock North, and Mr Maurice Campbell Menneer, market gardener, of Tuki Tuki.

In both cases the objectors had bought overseas securities with overseas currency and sold them at a profit in I New Zealand. They claimed

that none of the property had been acquired for the had been acquired for sale, or disposal and that their business did not include dealing in personal property. The Commissioner contended that the “profits on sale” constituted assessable income as they derived from the carrying out of an undertaking or scheme entered into, or devised for, the purpose of making a profit. Mr G. P. Barton appeared for the objectors, and Mr I. L. M. Richardson, with him Mr B. Cathro, appeared forj the Commissioner.