THE BORTHWICK CASE.

Gisborne Times, Volume XXVII, Issue 2639, 22 October 1909, Page 7

THE BORTHWICK CASE.

THE APPEAL DISMISSED.

TPeh P::kss Association.] WELLINGTON, Oct. 21. In the Borthwic'k case, Mr. Hosking contended that the only income taxable was the difference between the cost in. New Zealand plus freezing, etc., charges, and value of carceses received for shipping. Mr. Stringer' said that was all the Commissioner claimed, but he could never get a return. The Court adjourned the case to see if an agreement could be arrived at, but this failed, and Mr. Hosking'went on to argue that, the Commissioner had no power to assess appellants, but that if he did, under section 19 a magistrate could reduce it below 5 per cent of the gross proceeds. Mr. Stringer admitted this, and Mr. Hosking said that was all they were fighting for. Mr. Stringer stated no assessment- would have been made if returns! had been, sent in.. Two companies had been formed in order to evade income tax. The- Court expressed the -opinion that there was an appeal from the assessment, and the magistrate- could reduce if appellants showed the profits were less. The Court adjourned consideration of what order should be- made until to-day. Upon the Court resuming, Mr. Justice Williams stated that they had unanimously come to. the l conclusion that Borthwick’s appeal ought to he dismissed. There was no doubt the magistrate had not heard the case upon the assumption that -he could 1 not reduce the assessment below 5 per cent of the. gross amount of purchases, and therefore- having properly heard the case, the Court had no power to send it back for reconsideration. The appeal was dismissed, with £lO costs.