INCOME TAX ANOMALIES-

Auckland Star, Volume XXXVI, Issue 39, 15 February 1905, Page 10

INCOME TAX ANOMALIES-

;To the Editor.) Sir, —Tbe approach of the date at whir;h income tax is payable causes one to turn up this agreeable charge and look into the question, iv which there urc one or two matters which do not tend to make the payment, more welcome. Amongst the charges for conducting a business most people include rates and taxes, but the Income Tax Department refuse to sec it in this light, but compel one to agaiu pay the tax on tbe amount of the previous year's tax. In fche matter of donations, too, the Department take a view pr.ouliar to themselves: our Premier often wonders publicly why tbe rk-her classes are not more lilierai, but. presumably does not study- the notions of his Income Tax ■Department-, who conduct their business in siioli a manner as to dtarourago charity in any form. Subscriptions made by business bouses nre commonly regarded as ;i r.Uargr, and tlie nett income is ascertained after the payment of such subscriptions; the Income Tax Department, however, will not take, this view, but says that tax must be paid on the gross profits, without such deductions. These charges are small and galling, and from the Department's point of view it is difficult to see their wisdom. Ope of the

chief objections to an income tax is the difficulty - of getting people to render a true account of their income: if the Department dealt with the public on the ordinary give-and-take principle that obtains between business houses they would find themselves treated in a mudi more liberal spirit; after all. the department is not administering the affairs <of a conquered country, though one is inclined to fancy at times that they think so.—l am, et<;.,. DIVES IN TOKMESjI, 0