INCOME OR CAPITAL?

Evening Post, Volume CII, Issue 37, 12 August 1921, Page 8

INCOME OR CAPITAL?

CASE FOR,THE FULL COURT.

A case which was argued before Mr. Justice Sim, Acting-Chief Justice, on Wednesday regarding the assessability for income tax of moneys derived from the saJe of a sheep farm is to go to the Full Court to be re-argued. Dr. G. E. Anson, of Wellington, appealed against the assessment by" the Commissioner of Taxes, who accordingly stated a case for decision by the' Supreme Court. Mr. P. B. Cooke, who appeared for the appellant, contends that the money in question represents.merely the ■increase in the capital value of the farm and stock, because the appellant was not a trader in sheep and cattle, but a grower of wool. Mr. M'Gregor, Solicitor-General, representing the Commissioner of Taxes,, claimed that the money obtained by the sale, over and above the amount declared in the income tax returns as the value of the property, was income derived during the year, and therefore taxable.

This morning his Honour mentioned the case, and suggested that, in view of the importance of the questions involved, among which is the validity of a well-known judgment in a somewhat simitar case, the matter'should be argued afresh before the Full Court next month. Counsel agreed to this course.