UNEMPLOYMENT TAXES

New Zealand Herald, Volume LXX, Issue 21616, 7 October 1933, Page 14

UNEMPLOYMENT TAXES

LIABILITY DISPUTED

G. D. GREENWOOD ESTATE

APPEAL BY THE TRUSTEES [BY TELEGRAPH PRESS ASSOCIATION] WELLINGTON. Friday Argument was heard before the Court of Appeal to-day on the question whether the estate of a deceased person is subject to the emergency unemployment charge imposed by the Unemployment Amendment Acts of 1931 and 3932. The appellants were the trustoes of the estate of George Dean Greenwood, sheepfarmcr, who died on August 28, 1932, laving large estates at Toviotdale, near Amberley. During the year ended February 28, 1932, deceased derived an income other than salary and wages of £20,663, the unemployment charge thereon being duly paid. On May 2L and on August 4 tho testator paid quarterly instalments of the annual charge of 20s. The executors claimed that all liability to pay further instalments ceased on the death of the testator on August 28„ 1932. The Crown contended that the executors were liable to pay both tho quarterly instalments of the annual charge of 20s that, would have been payable by tvstator in November, 1932, and in February, 1933, had ho lived, and also the unemployment emergency charge on income received by the testator from April 1 until August 29, 1932, the date of his death. Decision of Trial Judge The appellants disputed the contentions of the Crown on the grounds that the charge was purely a personal tax and could be collected only from persons who remained alive when any instalment became due. In view of the importance of the question the trustees, with the consent of the Crown, applied to the Court by originating summons to have the questions determined. Mr. Justice Ostlei, the trial Judge, held with some tion that the estate was liable for both the annual levy and tho charge on income. The trustees appealed from this de Mr° n p. B. Cooke, opening the case for tho appellants, stated that although onlv approximately £650 was involved in the present appeal the question was one of considerable importance to executors and trustees. He submitted tiiat the assessment year for the emergency unemployment charge of Id in every Is 8d of income imposed by section" 13 of the Unemployment Amendment Act, 1932, did not begin until April, 1933, although the charge covered income received prior to that date. As deceased was not alive at the date of tho commencement of tho assessment year there was no liability upon the trustees to pay the charge on income which deceased had received prior to his death in 1932. Counsel submitted further that as there was no provision imposing unemployment charges upon estates oi deceased persons for income arising therefrom the trustees wero not liable. Contentions by the Crown The Solicitor-General, Mr. A. Fair, K.C., for tho Crown, submitted that tho object of the Unemployment Amendment Acts of 1931 and 1932 was to impose upon every person not specifically exempted a statutory liability to pay an annual levy of 20s. This liability did not consist of an obligation to pay a number of separate charges imposed every quarter, but of one charge which the person liable could pay at one time or in quarterly instalments. If any person died before all instalments had been paid his estate still remained liable for the other instalments as they became due. With regard to the emergency unemployment charge of Is in the pound the Crown contended that the charge attached to income as soon as it was earned, although the tax might not bo payable until the succeeding year. If a person receiving income died before the tax had actually been paid his estate was nevertheless liable for the charge and his executors could be sued for it.

After hearing Mr. Cooke in reply tho Court reserved its decision.