INCOME TAX.

Hawera & Normanby Star, Volume LI, Issue 9067, 12 April 1906, Page 5

INCOME TAX.

AN IMPORTANT CASE. * TAXATION COMMISSIONER v LOVELL AND CHRISTMAS. [press association.] WELLINGTON, April 11. The Full Bench of the 1 Supreme Court sat to hear the case of the Commisiioner of Taxes v. Lovell and Christmas. Defendants are an English company, who send out to this colony agents to enter into I contracts to sell butter in England on | commission. Advances are made to dairymen by a bank in different parts of the colony on a letter of a credit of tihe London firm, operated, upon by a member of the firm residing in New Zealand. The agents have only a commission agency business, on a basis similar to that of the New Zealand Loan and Mercantile Company, who sell wool, grain, etci, on commission. This company sells butter on the same basis Mr Bell appeared for the Commissioner, asking that the Court decree that the company must pay income tax on the pvofits it obtains from business done in New Zealand.

The defendant company contends that it only makes an advance in this colony on butter which it contracts to ©ell o commission when it reaches London.-