INCOME TAX

Gisborne Times, Volume XXII, Issue 1751, 17 May 1906, Page 3

INCOME TAX

(Per Pgesa Awociation.)

Wellington, last night, The Court of Appeal gave its decision this morning on an important question conoemiDg the liability of foreign companies doing business in tho colony for payment of income tox, Tbo case was the Commissioner of Taxes versus Lovell and Christmas, and the question was whether or not the defendant company was liable to be arßossod for income trx under the Aoi of 1900 in respect of profits derived from it. Tbo Court said that if the oompany carried on a business in New Zealand there eouid bo no question that it was liable to bo assessed for income tax in respect of tho profits. Tbo question therefore was wbetbor tho company wl.iib amt out agonts to the colony each year to make contracts for disposal by the company of produce in London, ourriod on a business in Now Z;aland. The Court bold that defendant company was liable to be as3os3:-d for pay merit of income 6 ,x in lOrpact of the profits doriyed by it from tho transactions slated in the c ns, and g tve judgment for plaintiff fer £ISOO, each side to pay its own casts. Lsavo to appoal to tbo Privy Council was given.