INCOME TAX LIABILITY.

Feilding Star, Volume XXVII, Issue 244, 16 May 1906, Page 2

INCOME TAX LIABILITY.

Telegraph. Proas Association. Copyright WkLungton, May 16. The Court of Appeal gave a decision this morning oo an important qaeetion concerning the liability of foreign companies doing business in the colony for the payment of the income tax. The case was the Commissioner of Taxes v. Lovell and Christmas, and the question was whether or not the defendant com* pany was liable to be assessed for income tax under the Act of 1900 in respect of the profits derived by it. The Court held that if the company carried on a business in New Nealand there would be no question that 1 it was liable to be assessed for income tax in respect . of the profits, the question therefore was whether the company which sent the agents on the colony each year to make contracts for the disposal by the company of produce in London carried on a business in New Zealand. The Court held that 7 the defendant company was liable to be assessed for the payment of the income tax in respect of the profits derived by it from the transactions slated in the case, and gave judgment for the plaintiff for £1500, each side to pay their own costs. Leave to appeal to the Privy Council was given.