A PROPERTY TAX CASE.

New Zealand Herald, Volume XXVII, Issue 8284, 17 June 1890, Page 4

A PROPERTY TAX CASE.

[BY TELEGRAPH. —PRESS ASSOCIATION'.] Napier, Monday. Captain Preeck, sitting as a Board of Review under the Property Assessment Act, to-day heard a peculiar case. It was an objection made by Messrs. Murray, Roberts and Co. to an alteration made in their property tax assessment by the Commissioner, who gave'notice that he would disallowa deduction of a sum of £25,000, which Messrs. Murray, Roberts and Co. claimed to deduct as debt due to the Bank of Australasia in the colony. Mr. Crombie, Deputy - Commissioner, appeared for the defendant. The facts were clear enough, and there was no dispute as to them. Prior to October, 18&3, Messrs. Murray, Roberts, and Co., drew on their London agents, Messrs. Saunderson, Murray, and Co., three bills for the aggregate amount of £25,000, which was to be repaid by wool sent to London in the season. These bills were purchased or discounted by the Bank, and the proceeds placed to the credit of Messrs. Murray, Roberts, and Co. They contended that the debt was due to the Bank, as the firm were collaterally liable to the Bank, and that they were therefore entitled to deduct the amount. Mr. Crombie urged that the debt was nob to the Bank, and that Messrs. Murray, Roberts, and Co. had no liability to the Bank, except in the event of the bills nob being honoured at maturity, and that did not entitle them to deduct the £25,006 as a liability within the colony. _ The case really turned on the interpretation of subsection 3 of clause 17 of the Property. Assessment Act, 1885. Judgment was reserved.