LICENSING POLL EXPENSES
BREWERY’S FIGHTING FUND. WELLINGTON, July 5. The Court of Appeal was occupied this morning in hearing argument in a case stated by the Commissioner of Taxes. This ease arose out of a claim by Ward and Co., Ltd (brewers, Christchurch), that a sum of £2123 3s llcl expended by the company in fighting the 1919 licensing poll should he exempt from income tax. The company based its claim for exemption on the ground that the expenditure was legitimate and necessary expenditure to protect the company’s revenue and to enable it to continue its business, and that the expenditure was exclusively incurred in the production of assessable income. At the hearing this mornifig Mr Blair, and with him Mr Cooke, appeared for the company, and Mr W. C. MacGregor, K.C. (Solicitor-General), for the Commissioner of Taxes. Mr Blair contended that the -expenditure was necessary to put tire point of view of the liquor party before the public. The expenditure was incurred for the purpose of assuring the life of the company. It was not. he said, capital expenditure. Mr W. C. MacGregor (Solicitor-General), who appeared for the Commissioner of Taxes, maintained that the expenditure was not wholly and exclusively incurred in earning income for the year in which the assessment was based, and was therefore liable to taxation. The expenditure, he said, was purely a capital one to obtain protection against a future change in law which would destroy the company’s business. The influencing of electors was no part of the business of brewing or selling beer. After Mr Blair had replied the court reserved its decision.
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Bibliographic details
Otago Witness, Issue 3513, 12 July 1921, Page 41
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269LICENSING POLL EXPENSES Otago Witness, Issue 3513, 12 July 1921, Page 41
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