CLAIM FOR INCOME TAX.

Gisborne Times, Volume XXVII, Issue 2658, 13 November 1909, Page 3

CLAIM FOR INCOME TAX.

SINGULAR CASE

[Per Press Association.l DUNEDIN, Nov. 12. At the Magistrate’s Court the Commissioner of Taxes sought to recover from George. Lyon Denniston the sum of £35 4s 9d as income tax for 1908 9, with 10 per cent interest. Defendant, in his evidence, said he had been assessed as agent for certain, non-residential traders, McLeod and Co. (Calcutta), and Patterson, Simons and Co. (Singapore). He had not done any business for McLeod and Co. for two years, but he still took orders for Patterson, Simons and Co., anil forwarded them to his principals, who could refuse or accept orders as they, thought lit. The goods were sold c.i.f., and wore delivered to a customer on his draft being honored. Witness’ responsibility ended when the order was accepted, iio didn’t handle either goods or money, and settled with the principals with regard to commission at the end of each year. Counsel for the defendant contended that defendant was‘only liable to pay tax on such income as reached his hands or was controlled by him. Another defence was that profits were not earned in Now Zealand but in Singapore, when the contract was accepted. Counsel for prosecution urged that as defendant was an agent he was taxable. There could be no profits until the money was •made, and money and profits were made and paid in New Zealand. Mr. Widdowson, S.M., reserved .judgment.