APPEAL ALLOWED.

Hawera Star, Volume XLVIII, 28 June 1924, Page 5

APPEAL ALLOWED.

AGAINST COMMISSIONER OF TAXES. • IMPROPER ASSESSMENT. (BY TELEGRAPH —PRESS ASSOCIATION.) AUCKLAND, June 27. i Judgment wa s given by Sir Robert Stout in the Supreme Court to-day in an appeal by the Colonial Ammunition Company against an assessment for income by the Commissioner of Taxes, touching a transaction in which large shareholders purchased the business. His Honor said that Major Whitney, as a shareholder, got control of the business, and on March 4, 1921. entered into an agreement to purchase the business in New Zealand as a going concern as from December 3, 1919. The consideration was £46,730. It was on this transaction that the commissioner sought to charge income tax. How could it be said that the commissioner had any authority to charge income tax on this transfer of a going concern to a part owner?.! asked his Honor. Major Whitney executed a deed of gift, in which the gift only was paid to Cecil Arthur Whitney, as a trustee to hold in trust and within the New Xealand company, to acquire the said business called the new company. The commissioner relied on the balancesheet of the new company as proof against the old company of the agreement made between Major Whitney and itself, and as proof of the value of the. property bought. The appellant had no hand in the preparation of this balance-sheet of the new company, and even if Cecil Whitney prepared this balance-sheet, how did his acts, either as past agent of the old company or as an officer of the new company hind the appellant company? Hi s Honor allowed the appeal with costs.