IMPORTANT INCOME TAX CASE.

New Zealand Herald, Volume XLI, Issue 12545, 12 April 1904, Page 5

IMPORTANT INCOME TAX CASE.

[Br telkobaph.—ritESS association.] Wkwismtok, Monday. Ik the case Commissioner of Taxes v. the Kauri Timber Company, the Appeal Court was unanimously of opinion that the company is not taxable under the Income Tax Acts upon profits earned by it beyond New Zealand upon timber exported by it from New Zealand in biulk or otherwise, and afterwards sold by it beyond New Zealand, whether after further process of manufacture or not. The Court held that the company is liable only upon profits earned by it in New Zealand, to be ascertained by estimating the value of the timber exported at the port of export. Dealing with (he further question put by the case, the majority of the Court was of opinion that, the company is not entitled to any allowance as for rent of its forest lands, but can claim such allowance only in respect of its business premises in various districts. The. Chief Justice differed to some extent from the other members of the Court. Upon this point, holding that portions of the company's timber lands may be said to be actually used and occupied by tho company for purposes of its business within the meaning of the statute. Tho questions, put by the case were answered in accordance with the judgments of tho majority of iho Court. Isy agreement- no costs were allowed.