QUESTION OF TAXATION
♦ APPEAL COURT CASE. A case concerning the imposition of mortgage tax and graduated land tax is being argued in the Court of Appeal today before their Honours Mr. Justice Denniston, Mr. Justice Edwards, Mr. Justice Cooper, and Mr. Justice Chapman. The case was that of the Commissioner of Taxes (appellant) v. Alfred Patrick Gorman and Harry Gorman (respondents). The Solicitor-General (Mr. J. W. Salmond) appeared for the Commissioner, and Mr. C. P. Skerrett, X.C.. with him Mr. E. F. Hadfield, for the respondents. On 24th March, 1914, A. McCarthy, as agent for the appellants, entered into an agreement for the sale of the Carlton Club Hotel, Hastings, to A. D. Douglas for the sum of £26,500. The property was, at the time of sale, subject to mortgage to G. Boyd . apd E. Newbigin, under which the sum of £11,700' was owing. On 24th March, 1914, Douglas paid appellants £15,000 on account of the purchase money. The agreement provided that a further payment of £1500 should be made on the execution of the transfer, and possession was to be given on 6th April, 1914. The agreement further provided that Douglas should take over, in reduction of the purchase money, the mortgage of £11,700, and that the balance of the purchase money should be secured by mortgage for five years. The further sum of £1500 was paid and the transfer executed. The amount of purchase money unpaid on 31st March, 1914, was £25,000, and the amount owing to Boyd and Newbegin -was £11,700. After deducting £11,700 from the unpaid purchase money there was a balance of £13.300 owing by Douglas to appellants on 31st March, 1914, and on this amount the Commissioner of Taxes assessed the appellant for mortgage-tax amounting to £41 11s 3d for the year commencing let April, 1914. A transfer of the propertywas not executed until 6th April, 1914, and the appellants received the rents of the land up to that date. The Commissioner assessed the appellants for graduated', land tax amounting to £8 10s Bd, and against this and the assessment in regard to mortgage-tax an appeal was made. The case was heard before his Honour the Chief Justice (Sir Robert Stout), who gave judgment against the Commissioner. Against that decision the Commissioner appealed. Argument is proceeding.
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https://paperspast.natlib.govt.nz/newspapers/EP19151006.2.69
Bibliographic details
Evening Post, Volume XC, Issue 83, 6 October 1915, Page 8
Word Count
382QUESTION OF TAXATION Evening Post, Volume XC, Issue 83, 6 October 1915, Page 8
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