IMPORTANT CASE.

North Otago Times, 23 May 1908, Page 4

IMPORTANT CASE.

Per Press Association. Wellington, May 22. Mr Justice Cooper delivered judgment in tho Supreme Court to-day in the caso of the Commissioner of Taxes v, the Trustees of Jacob Joseph (deceased). Mr 11. J). Dell, K.C., appeared for the plaintiff, and MtJL Chapman, K.C., for the late Mr Joseph owned at the tJI»of his decease a very large amount of. freehold property in New Zealand, lie devised his real and personal property to his trustees upon trust to sell, call in and convert at such thf.es and in such manner as they should think fit. The bulk of the freehold properties hnve not yet been sold and converted. He bequeathed certain legacies to certain persons, and declared that tho trustees should dividethe residue of the moneys into four amounts, to be called the Jacob Joseph fund, the Amelia Nathan fund, the Elsie Florence Joseph fund, and the Rose Miriam Joseph fund. The will contains power to the trustees to appoint trustees in respect of each fund. The questions stated for the opinion of the Court wcrc-(l) .Are the defendants of the persons for whom they are trustees to be deemed to be a single taxpayer within the meaning of section 45 oi the Land and Income Assessment Act, ]!)00, and liable to pay graduated tax as such; and (2) upon what principle and at what rale are tho defendant trustees and -the persons beneficially entitled under the said will and codicil to bo taxed in respect of land ? Practically the questions to be decided \vero-(lj A general question, .namely, whereland was devised to trustees upon trust to pay the income in equal or unequal shares to two or more benelitiaries, were the beneliciaries and the trustees as a body to bo treated as a single taxpayer of £l!)l)0 for tho purposo of graduated land tax, or was . each beneficiary to be considered a separate owner for such purpose '! nnd (2) if this general question was decided in favor of the Commissioner, had the four benelicicncics in this case become separate owners by virtue of the temporary appreciation of tho land referred to in the ca?c? The will permitted a temporary appropriation of properties as part of anyone of tho settled funds and gave power to vary any ( iSitch temporary appropriation,' but in his Honor's opinion the intention of the testator was that this temporary appropriation was to carry with it so long ns it existed tho alio- - cation oi tho income arising from the-. ■ lands so appropriated, and therefore a separation of such income from tho general income of tho estnlo until tho . power to' vary the temporary appropriation should bo o.xcrciscd, Tho temporary appropriation purported to havo been effected by tho trustees was not an 'appropriation within the terms, ' of the will, but was nominal only. -;. Had it been a real appropriation, al- <j though temporary only, the incomo !'; would have been also appropriated, ]' and this had not been done, nor did j it appear to him that it ttas intended; ' to bo done. A», thcrikhad therefore- ' been no appropriatiflfcg within. terms of tho will of in. ■•!.'» tcrest of tho yet been broken, and there-, was' but y.-: ono trust, for V- c'olktivo Indy of.'. . : beneficiaries. His Honor • answered the •.' questions stated aa follows' .Jueatiort r• • No, 1: Yos; No. 2: The nascent • of the graduated tax must bo spon ' the basis'of a Binglo taxpayer, Ihe " beneficiaries boing a collective body • with n community of interest. .Mr . . Jiell moved for judgment, co,iU of f3O nnd Court costs, • ' ' ';