JOCKEY CLUB MUST PAY TAX ON PROFITS
Judge Rules That Promoting A Business DUNEDIN, Last Night (P.A.)—ln a reserved judgment Mr. Justice Hav has found in favour of the Commissioner of Taxes, who was a respondent in a cast heard recently in the Supreme Court at Dunedin. in which the Cromwell Jockey Club objected to being assessed for income tax on £395 2s Bd. the club’s income for the year ended March 31. 1947. His Honour said that the appellant’s income was correctly assessed and allowed costs <£ls 15s) and disbursements in favoi|r of the respondent. The judge said he was in agreement with the case decided by Mr. Justice Chapman. In 1920. In the Cromwell Club case the appellant had contended that as the Land and Income Tax Act was a commercial statute a club like the Cromwell Jockey Club could not be deemed to be carrying on business. He had come to a conclusion that the law on the subject was governed by the decision of the Court of Appeal in England, in which it was held that ordinary members of a golf club, which by the terms of its lease was required to allow visitors to play cm payment of green fees, was carrying on an enterprise beyond the ordinary functions of a club, and that any profits derived from visitors' green fees were taxable under legislation. The appellant was chargeable with income tax unless it could establish that its revenue was not income for the purpose of the Act His Honour said it was not without significance when considering the intention of the legislation, that there now appeared an exemption in favour of bodies for promoting any game or sport <Ol her than horse racing or trotting), if such games or were conducted for recreation or entertainment of the public, and if no part of the income was used for the private pecuniary profit of any individual, or in making any payment to a person participating in a gome or sport.
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Wanganui Chronicle, 4 May 1949, Page 6
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335JOCKEY CLUB MUST PAY TAX ON PROFITS Wanganui Chronicle, 4 May 1949, Page 6
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