STOCK VALUES

Bay of Plenty Beacon, Volume 9, Issue 36, 4 January 1946, Page 3

STOCK VALUES

RELATION TO TAXES

ENORMOUS SUMS INVOLVED

A matter that occupied considerable attention at Executive meetings of the N.Z. Farmers' Union (Auckland Province) a few years back again came before that body at its meeting when an enquiry from the Ngatea branch concerning standard stock values was together with a legal opinion which had been obtained. This opinion, received from Messrs Sexton, Manning and. Fortune, stated inter alia:— "The matter of bringing standard stock values, up to a reasonable that is a value equivalent to the average of a number of years, is not now so urgent as it was, because the time, has now passed when the Commissioner was prepared to allow an adjustment to be made on payment of a small amount of additional tax or possibly no additional tax at all.

"There is no question but that farmers should have raised their values when the Union was pressing Liiem so urgency to do so. The failure, to do this has now cost farmers enormous sums in additional taxation during the next few years,.

"The Commissioner has power to call upon farmers to raise their standard values U he thinks they are too low and farmers will have to pay Social Security, National Security ami Income Tax on • the increased amounts. The writer's opinion is that when the Commissioner budds up his already enormous stuff after demobilisation, steps will be taken in this direction. In any case however every farmer whose standard values are too low, will be caught either on a dissolution of partnership, the sale of his farm and stock, or Anally death. One or other of these events inevitably happens and on the event, the difference between the standard, values and sale prices or probate valuations is taken into account and lull tax has to be paid thereon. "If farmers arc still prepared to bring enough pressure on their members of Parliament, it might still be possible to do something, but of course only a few farmers are hit in any one year and the rest do not bother.

"The only alternative is for farmers to raise their standard values gradually over a number of years and particularly if they strike a bad year. They will have to pay tax on the increase; but not at such a high rate as they would if 'the increase is all lumped in for one income tax year.

"We would .suggest that branches raise the question again by resolutions to the Provincial Executive of the Union and that they also take the question up strongly with their members of Parliament."