'MOST OBNOXIOUS'

Auckland Star, Volume LXXIII, Issue 166, 16 July 1942, Page 6

'MOST OBNOXIOUS'

TAX-GATHERING PLAN

STRONG OPPOSITION VOICED

Some very vigorous protests were expressed to-day by members of the Auckland Chamber of Commerce against what was described as "a most repugnant extension of bureaucratic control."

A letter had been read from the director of the New Zealand Freedom Association drawing the Chamber's attention to section 7 of the Finance Bill (No. 2), 1942. "To my mind." the letter stated, "it is one of the worst examples of 'Government by bureaucracy' that I have yet seen and I do feel that the time is ripe for a spirited and effective protest. For your information I quote the principal provision in what is altogether a most obnoxious section. The clause is: where any taxpayer has made default in the payment of any income tax payable by him for the year of assessment commencing on the first day of April, 1942, or for any previous or subsequent year, the commissioner may from time to time by notice in writing require any person to deduct from any amount payable by that person to the taxpayer such sum as may be specified in the notice, and to pay every sum so deducted to the commissioner to the credit of the taxpayer within such time as may be specified in the notice."

The chairman, Mr. L. A. Eady. said i that here they had an example of the extension of bureaucratic control against which the Chamber had al- j i eady expressed emphatic opposition. At a time when taxpayers were finding it increasingly difficult, the Commissioner of Taxes is being invested with power of this nature. It placed the whole commercial community in an inferior position to the commissioner. Mr. A. M. Seaman: I suggest that we should look further into it. If the debt is to the Crown it is already a preferential claim. No Appeal from Decisions The chairman pointed out that tinder the new legislation there was to be no appeal from the commissioner's decisions. The protection of the Courts could no longer be invoked. It would mean that"the commissioner would be supreme and overriding. He considered that the Chamber would be failing in its duty if it did not draw attention to this position. Mr. N. B. Spencer said it was clear that this would gravely affect not only the commercial section but the entire community. An employer could be forced to deduct such claims from the wages of his employees. Mr. J. A. C. Allum pointed out that many years ago a special Act had rightly been passed in England to protect a man's wages against just such action as this, and he asked whether in this case the State should not also be bound by this protection. A debt must be* paid, but the present, method was so repugnant that it should be protested against most strenuously. It did not require much imagination to see where it would lead if unchallenged. Doesn't Make It Right Mr. Seaman stated that the position in England had now been altered, and the taxation could now be taken from wages. Mr. A. G. Lunn: That doesn't make it any more right. He further pointed out that in the present case the new legislation applied also to past taxes. Mr. S. B. McDonald declared that there should be no power to alter the common law of England, and suggested that they should employ the best legal opinion in New Zealand. The position would have a very serious repercussion on employers, who would be held responsible for the payment of any moneys not paid at the proper time. 11 Mr. T. G. Baskett said that it would be using employers as debt collectors, and he had no objection to it. It was to help to collect taxes from the floating population, such as carpenters and others, and he thought they should do all in their power to assist. It was again stressed by both Mr. Allum and the chairman" that the gravest aspect was in that it infringed the proper right of the debtor to state a case to the Courts. Mr. Baskett: They have the right to petition Parliament. (Laughter.) Mr. J. Yock asked how else they were going to deal with defaulters —say, carpenters who were working all over the country. Mr. Lunn: It is not necessary to flout the law Courts. It was resolved.to refer the matter to the Associated Chambers of Commerce, with special reference to the powers given to the Commissioner of Taxation to make a charging order—a power at present confined to the Courts.