SOCIAL SECURITY TAX ON DAMAGES: APPEAL CASE

Greymouth Evening Star, 23 June 1950, Page 4

SOCIAL SECURITY TAX ON DAMAGES: APPEAL CASE

WELLINGTON, This Day (P.A.).—The question whether the social security charge of Is 6d in the pound should be deducted by the employer where an amount of special damages for loss of earnings is agreed upon or decided by the court is being argued today before the Court of Appeal, comprising Mr Justice Callan (president), Mr Justice Stanton, Mr Justice Hay and Mr Justice Cooke. , . . ... The appeal arises from a decision of the Chief Justice, Sir Humphrey O’Leary, on November 29, 1949, in which he decided, after hearing a damages claim between Ole Ramstead, of Wellington, a waterside worker, and the Union Steam Ship Company, that the social security charge should not be so deductSubmitting argument for the appellant company, Mr D. AV. Virtue, who had with him Mr J. C. White, contended that sections 119 and 130 of the Social Security Act constituted a statutory charge on wages of the highest kind known to the law. It cancelled a worker’s right to receive wages in full. There was a personal obligation on the employer to deduct the tax, which is recoverable only from the employer. Mr C. H. Arndt, and with him Mr F. K. O’Flynn is appearing for Ramstead. In his judgment in the first instance, the Chief Justice stated: “The question is of some importance, not because of the actual sum in difference in this action, but because of its general importance, as assessments of special damages for loss of earnings are constantly being made.” The hearing is proceeding.