INCOME TAX QUESTS.

Greymouth Evening Star, 16 May 1906, Page 3

INCOME TAX QUESTS.

[llV ELECTRIC TELEGRAPH.] [per press association). LIABILITY OF FOREIGN COMPANIES TO PAY. WELLINGTON, This Day. Tito Court, of Appeal gave its decision this morning on an important question concerning the liability of foreign companies doing business in the colony for the payment of income tax. The' case was Commissioner of Taxes v. Lovell and Christmas, and the question was whether or not the I defendants’ company was liable to be asessed for income tax under the Act of 1900 in ivsjiect of the profits derived by it. The Court said that it the Company carried on a business in New Zealand there could be no question that, it was liable to be assessed for income tax in respect of the profits. Ihe question therefore, was whether the Company, which sent out agents to Iho colony to make contracts for disposal by the Company of produce in London each year, carried on a business in New ■''ealand. The Court held that the defendant Company was liable to be assessed for the payment of income tax in respect of profits derived by it from the transactions stated in the case, and gave judgment for the plaintiff for £ISOO, each side to pav its own costs. Leave to appeal to the Privy Council was given.