TAX ASSESSMENT

Otago Daily Times, Issue 24412, 25 September 1940, Page 8

TAX ASSESSMENT

fh |PPEAIT COURT REAPING CLAIM ON MORTGAGE COMPANY (Per United Press Association) WELLINGTON, Sept. 24. , A dispute concerning taxation assessments between the New Zealand Dairy Farm Mortgage Company, Ltd., of Hamilton, as appellant, and the Commissioner of Taxes as respondent is occupying the Appeal Court. Shortly after incorporation in January, 1936, the company, with a view to obtaining money for relending on mortgage, raised £50,000 by the issue of debentures, and during the financial year ended March 31, 1937, granted applications for loans to the value of £158,817. ' The reserve fund required to be constituted in respect of this amount of advances was £3176 6s lOd, and was constituted by cash payments of £4dfe 6s 10d and additions to mortgages of £2708. The balance sheet for the financial year ended March 31, 1937. showed that, the amount standing to the credit 'of the reserve fund after payment of certain expenses was £3lll Is 10d. - In its income tax return lor the income year ended March 31, 1937, the company deducted or omitted from its assessable income this sum of £3lll Is lOd, and also £339 5s brokerage incurred on the i?sue of the debentures, and £263 4s 7d printing, advertising, and legal expenses in connection with the debentures. The commissioner, not agreeing to these deductions or omissions, staled a case for the opinion of the Supreme Court, and the case has now been removed into the Court of Appeals The case was unfinished when the court rose.