INTERESTING POINT

Evening Post, Volume CXIX, Issue 134, 8 June 1935, Page 11

INTERESTING POINT

SUPREME COURT TEST CASE

(By Telegraph—Press Association.)

HAMILTON, This Day.

An important test case of Dominionwide interest came before the Supreme Court today when the Crown brought ia ■ motion to reverse the Official Assignee's decision in holding in a bankrupt estate certain moneys allegedly tla<| for unemployment, taxation. "Mr. N. T. Gillies,' for the. Crown, stated that the bankrupt, Charles Beamish^ a cabinetmaker, Rotorua, deducted £4 19s 9d from employees' wages for taxation but failed to account to the Unemployment Board. The bankrupt had £68 in the bank and counsel contended that the Crown was

entitled to ; the unpaid taxation, holding that the proceeds were identifiable.

"Mr. Johnson, for the Official Assignee, pointed" out that though the amount was trivial other cases depended upon the decision. Every assignee and branch of the Labour Department in the Dominion was affected. He submitted that the Crown was in the position of an ordinary creditor, that the money was not identifiable, and that neither, the bankrupt nor the assignee were trustees.

His Honour Mr. Justice Reed considered he was right in rejecting the Crown's claim for preferential treatment, but said he would put his reasons in writing.