INCOME TAX OF AGENTS.

Otago Witness, Issue 2925, 6 April 1910, Page 12

INCOME TAX OF AGENTS.

COMMISSIONER OP TAXES v. G. L. DENNISTON. THE COMMISSIONER GIVES WAY. It may be remembered that in November last the Commissioner of Taxes sued Mr G. L. Denniston, as agent for certain non-resident traders, for income tax. The tax had been previously assessed at £9 3s lid, but" on Mr Denniston refusing payment the Commissioner reassessed him at £34 9s 9d, and sued for this amount. The case aroused much interest, as the decision affected a large class of agents who do business for foreign merchants, but who merely book orders and have no control of either the goods or the purchase money, as these pass directly between the foreign merchant and the purchaser. The chief defence was that under the act provision was made to protect agents under such circumstances, and that agents are only liable for tax on moneys that are held or controlled by them. It is expressly provided in the act that the agent is to be exempted from personal liability, unless he has had property or moneys in his hands out. of which the tax could be paid. Mr Widdowson, S.M., was of opinion that Mr Denniston was not protected under the act, and gave judgment for the Commissioner. In so doing he followed a previous decision to -the same effect by Dr M'Arthur, S.M. Mr Downie Stewart, on behalf of Mr Denniston. then lodged an appeal to the Supreme Court, alleging that the decision was erroneous in point of law. After further consideration, however, the Crown has decided that the magistrate's decision cannot be supported, and has, therefore, intimated to Mr Denniston's solicitor that the appeal need riot be proceeded with, as no attempt will be made to collect the tax.