INCOME TAX.

Taranaki Daily News, 27 October 1919, Page 7

INCOME TAX.

PAYMENT IN TWO COUNTRIES. AN INTERESTING POINT. By Telegraph.—Press Assn.—Copyright. Received Oct. 26, 6.5 p.m. London, October 23. An important income tax decision was given in the Court of Session at Edinburgh. The Scottish Union and National Insurance Company hold £IO,OOO preference stock in the New Zealand and Australian Land Company, bearing interest at 4 per cent. In paying its dividend the land company deducted the United Kingdom income tax of live shillings in the pound. Under the Finance Act the company, in respect of having paid Colonial income tax on the part of its income earned overseas, received repayment of the United Kingdom income tax at the rate of eighteen pence in the pound. The question was whether the insurance company, as holders of preference stock, were bound to pay more than three shillings and sixpence in the pound as tax on the\r dividends. The Court fteld that the deduction of five'shillings in the pound from the dividend was according to the Rtatute and they were not entitled to share in the rebate, paid to the land company.— United Service;