EXCESS CLAIMED

Evening Post, Volume CVIII, Issue 83, 4 October 1929, Page 11

EXCESS CLAIMED

INCOME TAX PAYMENTS

Tho extent to which the Government Life Insurance Department was liablo to pay income tax in respect of interest received on debentures issued bylocal authorities was the subject of legal argument heard by the Full Court to-day. The parties in the case, which was in the form of an originating summons, woro the Government Life Insurance Commissioner, plaintiff, and the Attorney-General for New Zealand, defendant. The Chief Justice, the Hon. M. Myers, presided, and associated with him wore Mr. Justice Herdman, Mr. Justice Adams, Mr. Justice MacGregor, and Mr. Justice Ostler. Mr. C. A. L. TreadweU, with him Mr. H. J. V. James, appeared for the plaintiff, and the Solicitor-General (Mr. A. Fair, K.C.) for the defendant. The Court was asked to interpret certain provisions of the Land and Income Tax Act, 1923, the following questions being submitted: (1) Whether the aggregate amount of income tax paid by the plaintiff for the years ended 31st December, 1925, 1926, and 1927, oxceeded the amount that would have been payable by him if the interest received by him on debentures issued by local authorities formed part of the taxable income of the Government Life Insurance Department; (2) at what rate the plaintiff was liable to pay income tax on income arising from such debentures having regard to the provisions of the above Act and other relevant statutory provisions. It was claimed that during the three years mentioned'the plaintiff had paid in income tax £17,074 in excess of what he was liable to pay by law. The right to a refund rests upon the Court's answers to tho questions.

(Proceeding.)