HARDSHIP CLAUSE.

Auckland Star, Volume LX, Issue 228, 26 September 1929, Page 10

HARDSHIP CLAUSE.

GOVERNMENT'S SUPERTAX.

HOW IT WILL WORK. STATEMENT BY COMMISSIONER. (By Telegraph;— Parliamentary Reporter.; WELLINGTON, this day. Representatives from the Canterbury Chamber of Commerce regarding the probable effect of the new land supertax were dealt with by the Prime Minister, Sir Joseph Ward, in his speech to the House, Sir Joseph found some difficulty, under the Standing Orders, in getting the matter on record, as it involved an outside reference to Parliamentary proceedings, " However, when he disclosed tho fact that what he was reading happened to bo a memorandum from the Commissioner of Taxes, he was permitted to proceed. The resolutions from tho Christchurch chamber had been submitted to the Commissioner of Taxes by tho chairman, Mr. Norton Francis, and the commissioner's comment was as follows:-— "It would appear that what is wanted by tho chamber is a hardship clause which will have the effect of converting tho special land tax into an income tax, by enabling the Commission to take into consideration 'the earning capacity of property and other relevant circumstances.' Tho hardship clause already provided in tho bill goes some distance in this direction, as far as would appear desirable. Some of the cases brought under notice by Mr. Francis will no doubt be favourably considered by the Commission. It is not possible to say definitely without a full statement of the assets and liabilities, 'and other particulars of each case. "

Some Hardships Inevitable. "Some of the cases will not be met by the hardship clause. A land tax is being imposed, not an income tax. With land tax, cases of hardship from an incomeearning standpoint arc inevitable. They occur with the existing land tax. If a taxpayer cannot show that the payment of the tax will cause serious hardships, I do not see on what grounds relief from land tax enn rightly be given. "It is alleged that Canterbury land is highly valued by comparison with land in other pa-j-ts of New Zealand. The statement may be correct, but I would point out that the remedy is in the hands of the owner. He can require a revaluation to bo made, object to the valuation if he considers it too high, and if the Assessment Court does not give him satisfaction he can, under section 4o of the Valuation of Land Act, 1923, requiro the Valuer-General to refer the matter to the Government with a view to acquisition of- the land, or to reduce the value. "Resolution No. 0 concludes with the proposal, 'That the Commissioner of Taxes shall be bound by the finding of the Commision.' Under the hardship clause as it stands, the Commissioner of Taxes has no power to cancel the special land tax. The commissioner may cancel such tax if the Commission recommends relief. This is as it should be. The main desideratum appears to .be that the tax should not bo lightly cancelled. The bill ensures this principle. The taxpayer lias to make good his case before the Commission, then its report comes finally before the official charged with the administration of the Act in general, including tlio other hardship provisions of the law.-1 may bo able to concur in the finding of the Commission in every case, b\xt should not be bound to do so. If the taxpayer considers he has not had fair treatment ho has the remedy of a petition to Parliament. —E. J. "R. Cummings, Commissioner of Taxes." Reform Member's Comment. The former Minister of Finance, Mr. W. Downio Stewart, had some comment to make on this memorandum. The Prime Minister, he said, had not only had to postpone his supertax collection, but also to listen to eases of hardship, and his Commissioner had been apparently so overwhelmed by the number of instances explained to him that he quite frankly admitted they could not all be met by the hardship clause, and there was no remedy in his mind; the most h® could suggest being that farmers adversely affected could petition Parliament for relief. It was an extraordinary thing if Parliament had to legislate in such a way that the only method of protecting people from its injustice was by petitioning, the House.