LAW AND JUSTICE
INCOME TAX DEMAND CRITICISM BY JUDGE ATTITUDE OF AUTHORITIES VIEW OF MORAL ASPECTS [BY TELEGRAPH —OWN CORRESPONDENT'] DUNEDIN, Tuesday An appeal against assessment for income tax in tho estate of tho late David Scott, which was heard in the Supremo Court this morning, prompted tho Chief Justice, Sir Michael Myers, to make some critical comments concerning what ho considered to bo the attitude of tho taxation authorities toward their moral obligations. Mr. D. L. Wood appeared for tho trustees of tho estate of Scott, and Mr. F. B. Adams represented tho Commissioner of Taxes. Mr. Wood said that tho testator in his will expressed a desiro that tlio trustees should maintain his old home for the uso of his daughter and that provision should also be made out of tho income of tho estato for the maintenance of his daughter until she came of age. Tho respondent desired to assess tho entire income from tho estato and not allow the appellants any exemptions for tho upkeep of the house and tho maintenance of tho daughter. " Shocks Sense of Justice " The respondent argued, counsel continued, that income received by the trustees was not income received on trust for tho maintenance of an infant, but that merely discretionary power had been vested in tho trustees as to whether they should maintain the child.
His Honor: That may bo right in law, but it shocks one's sense of justice. Does the commissioner wish the trustees to leave the child to starve? The principle contained in this appeal was decided by the previous commissioner, and on moral grounds. He determined it justly. I am surprised that the question has been reopened. Mr. Wood said that the appellants submitted that the will had been erroneously interpreted by the respondent. His Honor: The testator intended that the object of his bounty should not be compelled or permitted to starve. It was intended that she should be properly maintained. That is your contention, is it not? Mr. Wood: dt is, Your Honor.
His Honor: The testator expressed that intention with tolerable clearness. Even if the trustees failed to keep up the house, they would have to maintain tho child. If they did not, then the Court would be entitled to compel them to do so. The Testator's Wishes Mr. Wood proceeded to refer to authorities in support of his contentions, and quoted a statement by Sir George Jessel.
. His Honor: It would bo extremely interesting if one could hear the comments of the very eminent Master of the Polls, Sir George Jessel, or those of the very learned Judge who holds that office at present, on the attitude of tho taxation authorities in this country.
J.i l." 00 sai d that in maintaining the home and providing for the maintenance of the testator s daughter the trustees were carrying out his wishes. . His Honor: The Court is here to do justice and to see that if the taxing authority makes a just claim it shall succeed, but it is also here to see that if the claim is not just it shall not succeed.
After hearing further legal argument His Honor reserved his decision.
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New Zealand Herald, Volume LXXVI, Issue 23272, 15 February 1939, Page 14
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530LAW AND JUSTICE New Zealand Herald, Volume LXXVI, Issue 23272, 15 February 1939, Page 14
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