AN APPEAL ALLOWED.

Star (Christchurch), Issue 17028, 30 April 1923, Page 8

AN APPEAL ALLOWED.

LAND AND INCOME TAX CASE.

(Per Press Association.) WELLINGTON. April 80. The Court of Appeal gave judgment /his morning in the case of -Viactariane v. thq Commissioner of Taxes, which was, argued before the Court in OctuThe majority of the Court, consisting J of the Chief Justice, and Mr Justice Stringer and Mr Justice Adams were of the opinion that the appeal should be allowed. Mr Justice Salmond and Mr Justice Hosking dissented. The result is that both assessments of the Commissioner of Taxes are cancelled. Costs were allowed the appellant on the highest scale. The Solicitor-Gene-ral was granted conditional leave to appeal to the Privy Council. A case had been stated for the Court under .Sections 35 of the Land and Tncome Tax Act, 1916. and the ques tions involved were: (!) Is the Commissioner entitled to treat as income the difference between the standard value of flocks and herds (as agreed upon by the taxpayer and the Commissioner) and the actual market value of the same flocks and herds at the time of the taxpayer’s death ? or (2) alternatively, if the Commissioner is not entitled, is he entitled to treat the transfer to beneficiaries as a sale or disposition within the meaning of the Land and Income Tax Act ? Mr Andrews appeared for the appellants; and Mr MacGregor. SolicitorGeuenal. for the Commissioner of Taxes. Mr Andrews contended thar the Commissioner was tied to the standard value at the date of death. On testator’s dentli all his properties passed as capital to the beneficiaries. They took stock dii specie, and the distribution among the beneficiaries was not a or disposition within the meaning of the Lend and Tncome Tax Act. Mr Fair, for the Commissioner of Taxes. «nid that the increase ; n value of stock above R t*~darrl value T ”° c then it profit- or g°in which was assessable fev incon-w. iw’mospK. Tn anv case there b»d Ik«., •> dispnritiev. < r sol f , of steel- v-i+Lin *be weaning of the Land and Tncome Tax Act.