LAND MORTGAGES

Press, Volume LIV, Issue 16142, 21 February 1918, Page 3

LAND MORTGAGES

A FARMERS' GRIEVANCE. ATTITUDE OF SHEEI'OWXEKS. The mutter of the non-allowance under the present Land and Income Tax Act of mortgages on land formed the subject of a discussion at yesterday's meeting of the General Committee of the Canterbury Shecpownens' Union. A memorandum, considered by the committee, ran as follows:—"The question of the non-deduction of mortgages from the unimproved value of land has been brought before the committee. Formerly -the mortgages were deducted from the land values, now the taxpayer is compelled to pay the full graduated tax on the unimproved value of the land, although his interest in same may be very small. Several cases have been submitted to the union showing that the taxpayer;suffers extreme hardship by the present system. It is contended that tho taxpayer should be allowed to deduct Lis land tax from his income. Formerly the farmer had to pay land tax only, now he has to pay both laud and income tax, whereas the businessman Lna to pay bin; one tax. The present system operates harshly on small farmers, especially those owning a fe*v hundred acres of land at a high assessment." ! Mr C. H. Ensor said that the pre-! sent position was a most unjust one. J He knew the case of a small farmer! who had a farm worth £7000. There was a mortgage of £6000, and the farmer's equity was only £1000, yet l e had to pay a land tax of £41 12s. The mortgagee had to pay income tax only, yet the farmer had to pay that amount, and if he made an income of £300 on his equity he had to pay an income tax on that as well. "I blame the Finance Minister for the present state of affairs," said Mr Ensor. "He has made I an unholy mess of things, and I think he should either remain here and look after his business, or efte go to England and stay there. All wo farmers | are perfectlv willing to pay, and pay heavily until the end of the war. hut, we certainly think the, matter should be adjusted fairly." Various other members of the committee expressed their opinions strongly on the subject, and thought that tno utmost publicity should be given to the matter. Eventually Messrs C. H. Ensor, G. B. Starky, L. C. Gardiner, and the secretary, Mr F. H. Labatt, were appointed a committee to collect data on the subject and report to the committee.