FUNDS FOR “WET” CAMPAIGN

Star (Christchurch), Issue 16470, 5 July 1921, Page 7

FUNDS FOR “WET” CAMPAIGN

QUESTION OF TAXATION.

BREWERY CLAIMS EXEMPTION.

fP*n Press Association.! WELLINGTON July 5.

The Court of Appeal was occupied this morning hearing argument in a ease stated by the Commissioner of T n'es

The case arose out of a claim by Ward and Co., Ltd., brewers, Christchurch, that the sum of £2123 3s ltd expended by tlio company in fighting the 1919 licensing poll should be exempt from income fax. The company based its claim to exemption on the ground that the expenditure was legitimate and necessary expenditure to iprotect 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.

The subject of assessment was considered at the hearing this morning. Mr Blair and with him Mr Cooke appeared for the company and Mr W. O. Macgregor. K.C., Solicitor-General, for the Commissioner of Taxes.

Mr Blair, for Ward and Co-, Ltd., Oontended that the expenditure was necessary to put the 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, ho said, capital expenditure. Argument is proceeding.