TAKEN TO TASK.

NZ Truth, Issue 245, 5 March 1910, Page 5

TAKEN TO TASK.

INCOME RETURNS QUERIED. Was There an Evasion? Bowron Bros. Before the Bench. Remarkable . interest was manifested ia the hearing m Christchurch S.Mu Court this week of the case of alleged evasion of the Income Tax, because the parties are so well known and occupy positions of extreme altitude m the social world. George John Smith is a Legislative Councillor, and both he and • George Bowron are big guns m local pious and prohibition circles. George Bowron, William Bowron, and George John Smith, trading m co-part-nership as Bowron Brothers of Christchurch and elsewhere, merchants, vn**

charged that they did, within the space [ of three years,, to wit, on the: 6th day of November, 1806, at Cbristchurch, knowingly and wilfully deliver, a false return m relation to the income : of Bo wfon Bros, and that firm's liability ito taxation. -«,. The prosecution was conducted by Mr Stringer,\ K.C., and Mr Skerrett, K.C., appeared for the defendant firm. George Bowron and Smith were present m Court, but Willianv Bowron was absente Mr Skerrett raised a technical-objection to the Magistrate's Jurisdiction,, which was over-ruled after arguments that lasted the whole morning. The most prominent personage that figured m the prosecution was the witness- William- Morris Tyers, an inspector; under the Land and Income; ;Tax Act, and whose evidence took the best part ol Tuesday afternoon and Wednesday morning. Mr Skerrett submitted this witness to a Tery searching cross-examination. Witness was not, he said, very desirous of getting a conviction m this case. He did not think that he would get anything but hard knocks out of it no v matter how it went. He acknowledged that be, with others; had made this matter the subject' of a charge against bis superior officer. He declined to say. who the others were. ,He had never been uncivil to Smith, nor told him he was lying. He. fixed the ' amount upon which

income tax had not been, paid at £111,600.. Tyers suggested that Smitb shouW be asked to pay £10,000 m settlement, entirely exclusive of aa alleged bad: : debt of £108,000 upon which anotheo ' £-sGftO -was payable. Percy Howard Goodsir, accountant to / BoWton Bros, from 1904 to l»07, said -f he had never taken out a balance-sheet, although the books were so kept that -, one could be drafted at any moment. Charles Frederick. Thomas, manager ol . the Bank of New Zealand, stated that 4 the oajy balance-sheet that he had seen:? of Bffwron Bros. . was Jor a .period end- 4 'ing Juh- 31, 1907. \ Edward George Wood, manager ol i Bowzon's Wools«bn tannery, James Trr- '. ■TeLlaE. manager oi the felt department, j and Hurold Lightband, manager of tha . grindery . department, stated tbat it had been customary to take stock m September every year. „.■ . ; This- was the t cace for. the prosecution, . and the hearing ■■' was adjourned till Thursday morning, when. Me SKerrett announced that no evidence would.be called for the defence.. Counsel made a lengthy, address,, and JMi! Bishop, S.M. reserved his decision. • ;