INCOME TAX DISPUTE

Poverty Bay Herald, Volume LX, Issue 18265, 7 December 1933, Page 8

INCOME TAX DISPUTE

ASSESSMENT OPPOSED COMPANY AS TRUSTEE (I’or Press Association.) CIiRISTUHURCII, this day. An appeal against an income tax assessment by the Pratt I‘lslate Company, Limited, carrying on business in Christchurch, was hoard by Mr Justice Ostler in the Supreme Court. Tho respondent was the Commissioner of Taxes. The statement set out. (hat William Pratt, of Christchurch, died in October, 1905, and by his will empowered the trustees to form a company to take over his estate. The will -was administered to August, 192(5, and for the last 10 years the. assets consisted mainly of land and buildings leased to Messrs. J. Ballantyno and Company and to the. Federal Club. The appellant company was incorporated as a private, company in August, 192(1, and since incorporation had been assessed for income tax as a separate entity at the. rate, payable by companies. For the year ended March 31, 1932, the company had been assessed for income tax. The appellant contended (a) that it should not bo assessed as though it was beneficially entitled to such Income, as it is mere]v a trustee for beneficiaries who are

entitled to the receipt: of the income earned by such company under trust during the income year in which it was earned, and (b) that the company should be deemed to be the agent of tho beneficiaries, and assessed under section 102 (A) of the Land and Income Tax Act, 1923, and its amendments. (Proceeding.)