INCOME OR CAPITAL?

Hawke's Bay Tribune, Volume XI, Issue 199, 16 August 1921, Page 5

INCOME OR CAPITAL?

CASE FOR THE FULL COURT. A case which was argued before Mr. ■Justice Sim, Acting-Chief Justice, last Wednesday regarding the asscssabiiity for income tax of moneys derived from the sale of a. sheep farm is to go to the Full Court to be re-argued. Dr. G. E. Anson, of XVellington, appealed against the assessment by the Commissioner of Taxes, who accordingly stated a case for decision by the Supreme Court. Mr. B. P. Cooke, who appeared for th© appellant, contends that the money in question represents merely the increase in the capital value of the farm and stock, because the appellant was not a trader in sheep and cattle, but a grower of wool. Mr. McGregor, Solicitor-General, representing the Commissioner of Taxes, claim*ed that tho money obtained by the sale, over and above the amount declared in the income tax returns as the value of the property, was income derived during the year, and therefore taxable. On Saturday his Honour mentioned the case, and suggested that, in view of tho importance of the questions iu volved, among which is tho valid?'a well-known judgment in a somewhat similar case, the matter should be argued afresh befon tho Full Court next month. Counsel agreed to ilii 1 course.