MUST PAY INCOME TAX

Dominion, Volume 13, Issue 227, 19 June 1920, Page 9

MUST PAY INCOME TAX

POSITION OF RACING CLUBS

APPEALS FOR EXEMPTION DISMISSED

'■ That raoing clubs are not exempt from liability to pay income tax is tho eject :of a decision just given.in the Supreme ■Court by Mr.' Justice Chapman. Appeals ■ for exemption mado by the ABhburton .••'. Eaoine Club and tho Egmbnt Kacing Olub have been dismissed, with costs (£5 55.) against the appellants in each case. , "Counsel for appellants has argued." Stated Els Honour in tho course of his ■' 'Judgment, "that there is an implied exemption in favour of raoing clubs by '.reason of the numerous taxes for which ~ they ore already liable. . . . The arßUments based on the existence of the tax\ation referred, to as. applioablo to rac- '■ ing oluba do not appear to mo to show . any-deslro on tho part of the Legislature to make an. exoeption in favour of suofi oluba to tho very explioit terms of . section 55 of the Land and Inoomo Tax : Aot, 1916. Indeed,-wore I to admit tho "validity of the argument, the admission would have a far more wide-spreadine efleot than is apparent at first sight. It ■„ is perfectly legitimate to reoall, in con- .' struing BUCh. an enaotment, .the faot that ■■:■'. It was passed in wartime, and though .. its operation is not limited to wartime, 'it cannot be forgotten that the burdens of the war were not expected to end with ' the llosfilities, and did not so end. Tho " argument addressed to mo seems to be gore it .to be addressed to the Lewstore than to a Court. I cannot find . any ground for tho exemption olaimed." : When the ma-ttei was argued before His Honour In Ootober last year Mr, A. Gray. K. 0., with Mr. P. B. Cooke, as junior ■• counsel, appeared for tho appellants, Sir John Salmond, K.O. (then Solicitor-Gen-, oral) represented tho Commissioner of Taxes, /