FORM OF BLACKMARKETING IN MONEY

Chronicle (Levin), 13 September 1946, Page 5

FORM OF BLACKMARKETING IN MONEY

—Press Association

NOTE MANIPULATION TO AVOID INCOME TAX

By Telegraph-

WELLINGTON, Bept. 13. The attention of tlie Minister of Finance should be drawn to what waicalled a svstem of blackmarketing in money by means of which a consider able number of ricli men avoided pay ing income tax, said Ilon. J. K. Archei (Christchurch) in the Legislative Coun cil this afternoon duriug a discussion on the Land and Income Tax (annuah Bill. He said this blackmarketing wa* carried on in several ways but par ticu'larly in regard to totalisat u activities at trotting and gallopin^ events. His attention had been drawn to the matter by proniinent men ui Christchurch who wero themselves en tliusiastic racing men, said Mr. Archer. He liad been assured tliat by sonn species of trickery which he did not quite understand, the Minister o: Finance was being beaten for inconu tax. The leader of the council (Ilon. A. McLagan): In wliat way. M.r. Archer: By the use and misuse oi £50 and £10 notes. He liad 'been told quite definitelv that. .acting ifl cooperation with the totalisator autliorities and others, quite a number of men were using these notes in sucli a way as to have a sort of special running account by means of which they avoided pavment of a large amouiit of money each year. He had written to the Ministei of Finance on the matter but Mr. Nash was away at the time and anothei Minister acting for him, had replied that he did not see how steps couhl be ^kien to dce]gre-.£50 .and '£40 notes no 'IbiUger legal tender. ' Hon. MeLagan, replying to the points raised bv ]Mr. Archer, said ii appeared tiie latter had not quite understood the position as some person liad put it to him. It was impossible 10 defraud tlie Land and Income Tax Department on any rac ecourse although he could quite understand that someone might have said that there were people who were not meeting their obligations in full and were using their illgotten proceeds to operaie on raceeourses. Replying to a question Hon. McLagan said the Government did not impose income tax on racecourse winnings because if it did so it would have to consider the losses (which were often larger than the winnings) as money e\pfinded in earning fhose winnings.