NEW ZEALAND APPEAL.
LONDON, June 23. In the appeal case, Aspro versus the Now Zealand Commissioner of Taxes, the Privy Council reserved judgment. The question at issue in this case is whether the Commissioner of Taxes has the right to interfere with the allocation of directors’ fees in a private company. The case was heard by the New Zealand Court of Appeal in July, 1930. It was stated that when the company was established a profit was shown on the first year’s workings, and the directors’ fees were fixed at £ISOO each. The profits had increased in each succeeding year, and the directors’ remuneration was now fixed at £SOOO each. Tho Crown argued that as the company became established the directors’ duties would become lighter. In this case tho fees had grown higher instead of lower. It was contended for the Crown that this was a distribution of profits as fees in order to lower the rate of incomo tax. By a majority the Court of Appeal held that the distribution was not justified.
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Manawatu Standard, Volume LII, Issue 175, 25 June 1932, Page 7
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174NEW ZEALAND APPEAL. Manawatu Standard, Volume LII, Issue 175, 25 June 1932, Page 7
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