TEST CASE

Southland Times, Issue 25307, 10 June 1935, Page 8

TEST CASE

UNEMPLOYMENT TAX. CROWN’S CLAIM FAILS. (Per United Press Association.) Hamilton, June 8, An important test case of Dominionwide interest was before the Supreme Court to-day when the Crown brought a motion to reverse the Official Assignee’s decision in holding in a bankrupt estate that certain moneys were allegedly due for unemployment taxation. Mr H. T. Gillies for the Crown stated that bankrupt, Charles Beamish, a cabinet-maker of Rotorua, deducted £4 19/9 from employees’ wages for taxation but failed to account to the Unemployment Board. Bankrupt had £6B in the bank and counsel contended that the Crown was entitled to the unpaid taxation holding that the proceeds were identifiable. Mr Johnson, for the. Official Assignee, stated that though the. amount' was trivial other cases depended upon the decision. Every assignee and branch of the Labour Department in the Dominion was affected. He submitted that the Crown was in ~the position of an ordinary creditor, that the money was unidentifiable and that neither bankrupt nor the assignee was a trustee. His Honour Mr Justice Reed considered he was right.in rejecting the Crown’s claim for preferential treatment, but he would put his reasons in writing.