TOWN EDITION.

Marlborough Express, Volume XXXIX, Issue 113, 16 May 1906, Page 3

TOWN EDITION.

APPEAL COURT.

AN INCOME TAX QUESTION

[PRESB ASSOCIATION J

WELLINGTON, May 16. The Court of Appeal gave a decision this morning on an important questio.n. concerning the liability of foreign companies doing business in the colony tor the payment of income tax. The case was Commissioner of Taxes versus Covoll and Christmas, and the question was whether or not the defendant company was liable to be assessed for income tax under the Act of 1900 111 respect of profits derived by it. -the Court said that if the company carried on a business in New Zealand there could be no question that it was liable to be assessed for income tax in respect of the profits. The question, therefore, was whether a company which sent out agents to the colony each year to make contracts ior the disposal by the company of produce in London carried on a business in New Zealand. The Court held that the defendant company was liable to be assessed for the payment of income tax in respect of the profits derived by it from the' transactions stated in the case, and gave judgment for the plaintiff for £1500. Each side is to pay its own costs. Leave to appeal to the Privy Council was given.