BANKRUPT ESTATE

Nelson Evening Mail, Volume LXVI, 10 June 1935, Page 4

BANKRUPT ESTATE

IMPORTANT TEST CASE (Bv Telegraph—Presß Association) HAMILTON, This Day. An important test ease of Dominionwide interest came before tile Supreme Court to-day when the Crown brought a motion to reverse the Official Assignee’s decision in holding in a bankrupt estate certain moneys allegedly due for unemployment taxation. Mr N. T. Gillies, for the Crown, stated that the bankrupt, Charles Beamish, a cabinetmaker, Rotorua, deducted £4 19s 9d from employees’ wages for taxation but failed to' account to the Unemployment Board. The bankrupt had £6d in the bank and counsel contended that the Crown was entitled to the unpaid taxation, holding that the proceeds were identifiable. Mr John, tor the Official Assignee, pointed out (hat though the amount was trivial other cases depended upon the decision. Every assignee and branch of tlie Labour Department in tlie Dominion was affected. He submitted that the Crown was in the position of an ordinary creditor, that the money was not identifiable and that neither the bankrupt nor the assignee were trustees Ills Honour Mr Justice Reed considered he was right in rejecting the frown s claim for preferential treatment, but said he would put, Iris reasons in writing.