IS LAND TAX APPORTIONABLE?
AN IMPORTANT APPEAL. Tho Court of Appeal heard argument at Wellington yesterday afternoon in the case of Henry Alexis Charles versus Edmund William Lysons and others, an appeal from tho judgment of Mr Justice Reed .it Now Plymouth. Tho appellant purchased a farm in Taranaki from the respondents, and the agreement for the sale «nd purchase contained a danse that all rates, taxes, and other outgoings should bo apportioned to July 1, 1920. Tho dispute arose as to whether 'the words “taxes and other outgoings f> included land tax. the 'respondents contended that laud tax was included, and claimed from tho appellant the sum of £lO6 16s lOd, being tho proportion of land tax alleged to bo payable by tho appellant. Mr Justice Reed gave judgment in favor of the respondents for the full amount claimed, and against this judgment' tho appeal was lodged. Mr M. Myers, for the respondents, raised tho preliminary point as to whether the appeal was in time. Decision was reserved on this point. Mr A. Gray, K.C.. in opening argument for the appellant, said that the case was important, because it involved an interpretation of a judicial decision that land tax was apportionahle. Ho contended that the Land and Income Tax Act of 1916, section 162. prohibited any apportionment. Tile person who owned land on March 31. 1920, was liable. ho contended, for the whole land tax of that year, even if he sold on April 1, 1920, and he could not contract himself out of that liability. Mr Myers, for the respondents, said that if Mr Gray’s contention was correct a man might purchase land on April 1, 1919, and sell on March 50, 1920, and yet escape nil land tax. Such a result was .not equitable, and tho court would not hold such to be law if it could help doing so. The agreement for the apportionment of taxes in the present case did not offend against section 162 of the baud amt Income Tax Act. The apportionment of the land tax would not affect tho incidence of (he tax at all.
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Evening Star, Issue 17958, 3 May 1922, Page 10
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353IS LAND TAX APPORTIONABLE? Evening Star, Issue 17958, 3 May 1922, Page 10
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