STOCK VALUES

Bay of Plenty Beacon, Volume 2, Issue 228, 21 October 1940, Page 5

STOCK VALUES

COMMISSIONER'S DECISION TO BE CHALLENGED FARMERS" UN HON MOVE The question of the increases in stock values required by the Commissioner of Taxes for purposes of Social and National Security taxation was discussed further by the Auckland Executive of the Farmers' Union at its monthly meeting. The position is that when unemployment taxation ivas first introduced many farmers, following official instructions, entered their stock at nominal valuations and have kept them at the same level ever since. From the current year onwards, however, farmers Avliose valuations have been low are required to raise them to a point approximating to market values. This will involve, in many cases, payment of additional taxation to cover the increased valuations. "The executive had already taken strong exception to the levying of taxation on arbitrary book values that do not in any sense come within the definition of income. It has now decided -to test the question at law, by selecting a particular case and inviting the Commissioner of Taxes to take action to recover the additional amount of tax claimed. Excess Profits Tax. Another matter that? was given full discussion Avas the Excess Proi fits taxation proposed by the Gov- | eminent. It was pointed out by one | speaker that.it is not possible for farmers working on fixed prices to [ profiteer as a result of war condij tions. Furthermore, the proposed method of collecting taxation will react very unfairly on those farmers who; after spending years of effort with small reward in breaking in farms, have only recently broitght their farms to the point of full development and begun to receive substantial returns. Their

present income, in such cases, represented the reward not only for work currently (lone, but also for the lean years during which they worked hard and ,received little. The Dominion Executive of the Union is to .be supplied with detailed information "and comment concerning the unfair incidence of the proposed tax and asked to place this before the Government.