ALLEGED NEGLIGENCE

Evening Post, Volume CIV, Issue 144, 15 December 1922, Page 8

ALLEGED NEGLIGENCE

PENALTY-OF £200 IMPOSED.

'A isuramons case of unusual proportions was called before Mr. F. X., Hunt, 5.M.,: at the.Magistrate's Court to-day, the"defendant, Samuel.,Turrier, having to answer to two charges, of negligently making a false return to the Income Tax Commissioner. ' ■ , ' ■

Mr. ,P.-S. K. "Macassey prosecuted, and the .defendant, who. pleaded guilty, was represented by Mr. R, L> Macali»ter. , ■'"' ■'. " The defendant, said Mr. Macassey, was the well-known mountaineer, and he had, for many years past, been employed by the firm of Lonsdale ■ and Company at a salary of about £1200 per year. He had dealings with the Australian Salt Company, by which he considerably supplemented his income, and it was also suggested that by private speculations in salt, still more money accumulated. With, regard to the information laid in connection with March, 1921, the defendant had returned his income as being about £1370, whereas it was assessed by, the Department at £4037, In 1920, the amou#t set,down by Turner was £1370, but the Departni^nt maintained that his income for that particular year -was £8659. It was thought that the. differences between the assessments of Turner and those of the Department represented the amounts made by the defendant in his dealings in salt,, and to which he had not made reference.. Apart from the above, the defendant had also invested freely in' property, etc., and had made substantial loans. '

Mr.'. Macalister explained that, besides his own private income, the defendant was interested in that of a company, trading, as " Samuel Turner, Ltd. As 'far. as the defendant's personal account was concerned, everything was in order with the exception of the omission of ft " suspense account," which, on the advice of an accountant, had been opened some time, ago, when Turner was experiencing considerable difficulty in obtaining the necessary shipments of salt. The account was necessary to back contracts. If the defendant had suffered any' heavy losses, he would have had the " suspense account" to fall, back on. This account was at the root of all the trouble, and it was very unfortunate that the defendant had not mentioned its existence to the Commissioner. Under these circumstances, counsel asked that a nominal fine be inflicted. .

/Mr. Macassey pointed out that Tnrner had drawn large sums of money from the suspense account for his own private use. ■ •

The Magistrate: "I can't see a redeeming feature in the whole case. This man f has omitted to account for som» thousands of pounds. He may be .unfortunate, but he is well off, and can afford to pay for his knowledge. Fined £100 on each of the two charges."