Injunction dismissed

Press, 7 December 1981, Page 4

Injunction dismissed

: PA Wellington An application bv 34 boilermakers for an interim injunction to stop the pay- - ment of more than $1 million in taxes has been dismissed ! by Mr Justice Savage by : consent in the High Court at : Wellington. | The boilermakers, who I were recently’ paid off after ; completing their work on the I Bank of New Zealand's new I building in Wellington, were 1 seeking an interim injunction to stop their employer, Mul- ' ticon Engineering Pty, Ltd, ■ paying the deducted tax. and i also a declaration by the • court that the pay is not : liable to tax of 60c in the i dollar. Multicon was named as i first defendant, Gilfillan Morris and Company.

chartered accountant, second defendant, the Commissioner of Inland Revenue, third defendant, and the AttorneyGeneral (sued in respect of the Inland Revenue Department) fourth defendant. The boilermakers consider the money to be redundancy pay. while the employers regarded it as salaries and wages and taxed it inglyThe Commissioner this week instituted assessment procedures and the parties agreed to await the outcome. The boilermakers will rely on objection procedures under the Income Tax Act byway of a case stated to the High Court, after the Commissioner has assessed for tax purposes their final payments.