MAORI LAND CASE

New Zealand Times, Volume XXXIII, Issue 7849, 11 July 1911, Page 1

MAORI LAND CASE

THE DONNELLY ESTATE TAXATION QUESTION. BEFORE COURT OF APPEAL. An important and interesting case, an originating summons removed to the 'Court of Appeal for determination, was argued in Wellington yesterday. The parties were George Prior Donnelly, of Hawke’s Bay, plaintiff, and the Commissioner of Taxes, defendant.

The Court was composed of their Honors Sir Robert Stout (CMcf Justice). Sir Joshua Williams, Mr Justice Donniston, Mr Justice Edwards, and Mr Justice Sim.

Sir H. D. Bell, K.C., with Air T. W. Louts, of Hastings, appeared for tho plaintiff, and Air J. W. Salmond, Solici-tor-General, for tho Commissioner. Plaintiff’s wife, who was a Maori, died on Juno 7th, 1900, leaving property consisting, inter alia, of native land owned by her partly in severalty and partly in common with other natives. She devised to her husband all. her estate and interest in the Waimamma block, subject to certain conditions being fulfilled by him. He did not fulfil the prescribed conditions, and accordingly he waived till claim to beneficial interest in the block. On October 19th, 1909, ho informed the trustees (J. H. B. Coates, J. M. McLean, and J. D. Ormond) of this, and entered into an agreement with them that he should be entitled to occupy the Waimarama lands until tho trustees should require possession. Plaintiff asked for a declaratory judgment determining the following questions :

(1) Whether tho right of occupation conferred upon plaintiff by clause 9 of tho will of Airini Donnelly, deceased, constitutes a leasehold estate in land within the meaning of subsection 1, of section 56, of the Land and income Assessment Act, (2) Whether the right of occupation conferred upon plaintiff' by tho agreement entered into between liim and* the trustees of the estate of the late Airini Donnelly constitutes a leasehold interest in land within the moaning of tho subsection. (3) Whether, when land is owned in common by Europeans and Maoris, a leasehold ©state granted by such a .European to a European in respect of tlie undivided interest of the lessor is exempted from taxation under the section as 1 icing a leasehold estate in. Maori laud-within tho -meaning of subsection 3,

The importance of the case to the parties is considerable in view of - the fact that if the Court holds that the Land is a leasehold, then the land must be added to plaintiff's other assets when ascertaining iiis graduated land tax. The Commissioner did in fact declare that the land was a leasehold, and so regarded it for the purpose of assessing the tax payable by plaintiff. Plaintiff objected on the grounds that he had no leaseliokl estate; that if he did, it was a leasehold iu Maori land, and therefore exempt; and that if his tenure was a leasehold the agreement as between him and the trustees under the will was illegal and void. These objections Mr Beil urged at some length, submitting further that plaintiff’s interest in the laud was not a leasehold within the moaning of the law, but a mere use or occupation or some limited estate less than a leasehold. The argument on both sides concerned mainly the meaning of the words of tho sections of the Act dealing with leasehold and with Maori Land. Tho Solicitor-General sought to show that the Donnelly’s estate -in the block was an, ©state of leasehold, arguing that, apart from freehold, there could not bo a lesser estate in land than an ©state for life, unless it were on estate of leasehold. . Judgment was reserved.