EMERGENCY CHARGE

Manawatu Standard, Volume LIII, Issue 266, 7 October 1933, Page 4

EMERGENCY CHARGE

COURT OF APPEAL CASE,

Per Press Association

AVELLINGTON, Oct. 6.

Argument will be heard before the Court of Appeal to-day on the question as to whether the estate of a deceased person is subject to the emergency unemployment charge imposed by the Unemployment Amendment Acts of 1931 and 1932. Appellants are the trustees of the estate of the late George Dean Greenwood, sheepfarmcr, who died on August 28, 1932, leaving large estates at Teviotdale, lioar Amberley. During the year ending, February 28, 1932, deceased derived income other than salary and wages of £25,663, the unemployment charge thereon being duly paid on May 21, and on August 4, testator paid the quarterly instalmens of the annual charge of 20s. The executors claimed that all liability to pay further instalments ceased on the death of testators on August 28, 1932. The Crown contended that the executors were liable to pay both quarterly instalments of the annual charge of 20s that would have been payable by testator in November, 1932, and in February, 1933, had he lived, and .also the unemployment emergency charge on income received by testator death of testator on August 28, 1932. the date of his death.

Appellants disputed the contentions of the Crown on the grounds that the charge was purely a personal tax and could be collected only from the persons who remained alive when any instalment became due. In view of the importance of tho question, the trustees, with the consent of the Crown, applied to the Court by an originating summons to have the questions determined.

Mr Justice Ostler, the trial Judge, held with some hesitation that the estate wa« liable for both the annual levy and the charge on income. The trustees have appealed from this decision.

Mr P. B. Cooke, opening the case for apiiellant, stated that, although only approximately £650 was involved in the present appeal, the question was one of considerable importance to executors and trustees. He submitted that the assessment year for the emergency unemployment charge of Id in every Is 8d income, imposed by section 13 of the Unemployment Amendment Act, 1932, did not begin until April, 1933, although the charge covered income received prior to that date. As deceased was not alive at the date of the commencement of the assessment year there was no liability upon the trustees to pay the charge on the income which deceased had received prior to his death in 1932. Further, that as there was no provision imposing unemployment charges upon estates of deceased persons for income arising therefrom the trustees were not liable. The Solicitor-General (Mr A. Fair, !K.C.), for the Crown, submitted that ‘ the object of the Unemployment i Amendment Acts of 1931 and 1932 was to impose upon every person not specifically exempted a statutory liability to pay an annual levy of 20s. This liability did not consist of an obligation to pay a number of separate charges imposed every quarter, but of one charge which the person liable could pay at one time or in quarterly instalments. If any person died before all instalments had jieen paid his estate still remained liable for the other instalments as they became due. With regard to the emergency unemployment charge of Is in the £, the Crown contended that the charge attached to income as soon as it was earned, although the tax might not be payable until the succeeding year. If a person receiving income died before the tax had actually been paid, his estate was nevertheless liable for the charge and his executors could be sued for it. After hearing Mr Cooke in reply, the Court reserved its decision and adjourned till Monday.