HOTELKEEPER’S INCOME TAX

Dominion, Volume 18, Issue 151, 23 March 1925, Page 6

HOTELKEEPER’S INCOME TAX

AN APPEAL DISMISSED. In a reserved judgment on Friday, the Chief Justice (Sir Robert Stout) dismissed the appeal of Adam John Munre, hotelkeeper, against tho Commissioner of Taxes for his refusal to allow a reduction of appellant’s income. Appellant;, said. His Honour, purchased the lease, license, and good-will and furniture of the New Zealander Hotel on July 27, 1921. He made a return for the year ending March 31, 1921, and this showed an income of .£7452. fie claimed deductions amounting to .£(>4l’2 2s. lOd. These deductions included, inter alia, .£1425 for goodwill, and this deduction was not allowed by the Commissioner. The appellant claimed that the whole amount of .£sool} paid as such consideration or in the alternative tho whole amount paid as consideration for good-will of lease and/or good-will of business during tho unexpired term of the lease and a fair allowance for depreciation of (lie value of the said furniture whs expenditure exclusively incurred throughout the. unexpired term of the lease bv- the appellant in the productian of the assessable income derived fror-i the business «•£ the hotel purchased.