LINEN DEAL.

Hawera Star, Volume XLVI, 5 February 1927, Page 5

LINEN DEAL.

HUGE PROFIT MADE

LONDON, Dec. 8

How a. profit of £1,700,000 was made on a deal with Government linen was told in the House of Lords yesterdav, when the appeal of Mr L. J. Martin agains assessments to excess profits duty and income tax was dismissed. Mr Martin, is was said, was a merchant dealing in agricultural machinery. but in June, 1919, he bought ■10.000,000 yards of linen from the Government for ■ £3,733,625. But the following February he had sold the lot for £5,441,117He was assessed to excess profit dntv in £855,000, and in income-tax in £1,900,000. hut the Special Commissioners reduced the figures to £720.767 and £908,989 respectively. These figures were twice confirmed on appeals. _ Mr A. M. Latter, K.C., for MiMartin. contended yesterday that as the deal was a single one there was no trade. Lord Carson: Your proposition would involve that a man who bought a liankrunt’s stock of jewellery and rented a shop in the Strand to dispose of it would not have to pay income tax. Continuity made all the difference, arsmed Mr Latter. Lord Sumner: Your- case is like that of a mar> who, falling into temptation and hacking a. horse and winning, is so pleased that he never does it again.