INCOME TAX RETURNS.

Otago Daily Times, Issue 19903, 24 September 1926, Page 7

INCOME TAX RETURNS.

ALLEGED EVASION. ODLIN COMPANY’S APPEAL. (Pee Ukited Bless Association.) WELLINGTON, September 23. The hearing of the Odlin Timber Company’s appeal was continued to-day in the Supreme Court. Mr Harcourt, a valuer, gave evidence on behalf of the company and also William Gilbert Alexander, the company’s accountant. When Mr Kennedy proceeded to call William Gilbert Alexander Mr Macassey suggested that the proper course would be to call Mr Odlin first. He pointed out that Mr Alexander’s evidence would be in the nature of corroboration, and it would be undesirable if his evidence were heard by Mr Odlin. Sir John Findlay said that during the examination of Mr Alexander points were almost sure to rise which it would be necessary to refer to Mr Odlin. His Honor: It is a matter for comment. Sir John. Sir John: If your Honor takes that view of it . His Honor: 1 take this view of it: If an accused person in the dock does not go into the box first, and listens to evidence which is suoposed to be corroborative, it is always open to comment. Sir John: Your Honor’s comment is perfectly fair. I will take the hint and ask Mr Odlin to leave the court. Mr Odlin then withdrew, and the examination of Alexander proceeded. Alexander’s evidence dealt with the entries made in the timber account in the company’s books. The timber account, be said, was the main channel for all charges against the timber department. Mr Kennedy: In regard to the motor lorry purchased for the timber department; is that described as a lorry in the account?—lt is. Mr Kennedy; It is quite clear that a motor lorry is not called timber? —Perfectly. Mr Kennedy: There was no intention that it should be regarded as timber? — None at all. Mr Kennedy: Is it part of your duty to prepare the balance sheet and profit and loss account for the company?—lt is. Mr Kennedy: Have you done that since 1919—Yes. Mr Kennedy: Cam you claim a personal familiarity with the ramifications of the Odlin business?—No. Mr Kennedy: Do you, as an accountant, have to rely in many oases on outside information ? Witness: Yes. If a thing comes to me certified I accept it. Mr Kennedy: How many accounts are there on your books? —About 6000, I should say. Rcefrring to bad debts, witness stated that at the present time the bad debts on the books of the company amounted to £134,000. Cross-examined by Mr Macassey, the witness said that he did not discuss the balance sheets with Mr Herron, the secretary. i Mr Macassey: But Mr Herron signed the sheets.—Yes. Mr Macassey; Yet he did not discuss them with you? Witness: I made them up and took them to Mr Herron or to Mr Odlin. Mr Macassey: You do not suggest that Mr Herron did not know what purchases were made or what reserves there were? — He knew that. Mr Macassey: Do you think it is a proper thing to charge capital expenditure to revenue? —It was the policy of the company. The witness added that he did not see the income tax returns of the company. Mr Macassey: Did you know that the effect of making charges to revenue was to reduce the profits? Witness: Well, of course.