IMPORTANT JUDGMENT.

Colonist, Volume LI, Issue 12469, 20 February 1909, Page 2

IMPORTANT JUDGMENT.

LAND AND INCOME TAX. ' [United Peess Association.! Wellington, Feb 19A question of liability to taxation was decided by Mr Justice Cooper today in adjudgment in the case of Peck and Heath, trustees in the Heath-Es-tate versus the Commissioner of Taxes. The point at issue was whether sections 16 and 26 of the Land and Income Assessment Act, 1907j were retrospective,' and applied only to transactions that might appear a;i evasion of the provisions of the Act. His Honor held that the Legislature, intended the Act*to apply to past transaction's within a period of five years before the passing of the Act, "where possession had not been given; and at least 15 per cent of. the purchase money paid before the; ;, 31st March, 1907. the vendor remained the owner of the land if possession had not been given, and the purchase money had not been paid then, even though a conveyance might actually have been executed, and the vendor might thus have divested himself of any legal estate in the land, he was still deemed to be the owner, within the meaning of the Act. His Honor therefore deemed the transaction in the present case to be within the express 'words of the statute. The amount payable by the plaintiffs in the assessment was £1069 9s:lld^ demanded by the Commissioner of* Taxes. The plaintiffs were not entitled to'any deduction.