Income Tax
p. 77 · Read in the full issue
Guinea Gold N.L. And
Shareholders of Guinea Gold, n. 1., who participated in the distribution of New Guinea Goldfields and Guinea Air ways shares in 1929 are not exempt from Federal taxation in this regard. The secretary of Guinea Gold says that this is apparent from legal opinion following the reasons for judgment which have now come to hand although the appeals to the High Court about income tax liability for distribution to shareholders were allowed with costs.
The High Court order has reserved to the Taxation Commissioner liberty to make fresh assessments to cover the two distributions mentioned.
The value of the respective shares at the date they were acquired by the com pany will be the basis of assessment of the shareholders concerned. In the case of New Guinea Goldfields the value will probably be 5/6. The value of Guinea Airways shares will have to be deter mined. The distribution of 10/ a share arising from the sale to Placer Develop ment is declared to be exempt.