OVERHEARD

Dominion, Volume 3, Issue 912, 3 September 1910, Page 5

OVERHEARD

AT THE DEATH DUTIES OFFICE.

HOW THE NEW ACT WORKS. /The manner in wliioli increased taxit tion will be .extracted from widows and other benefiuiaries under the new death duties is l well illustrated in this series of imaginary conversations with the Minister. The information afforded an to the amount of duty no\y collectable as compared with the . amount collected under the old Act has been checked by a member of the lejal fraternity and passed as correct/). .: Enter the widow of a baker and storekeeper: . ■ ■'. "I cannot understand how. you assess my late husband's estate, at ,£2400.. I think, the valuation of the stock-in-trade is about right, but his interest in the lease and shop cannot make up the difference. Eighteen.montlis ago X came, out to. marry my husband, and don't understand New Zealand laws.". : . ■: : "My i;ood woman," remarked tho Minister, "you must have overlooked the goodwill; that intangible asset which a liberal Government here-creates for man by means of the Death Duties. ,Wo calculate it on the proiits oi the two or three years previous to your, husband's death." ..:... ■...'■■ ;. ;;' ..-.■ : "But, sir, such goodwill as there was has collapsed in consequence of my.husband's death. Being a baker by h'ade, he used to' get up and'starl work at 3 a.m. every, day of his life, but I cannot continue that. I have a young child to attend to. I donot tbink. Mr. LloydGeorge ,was so lard." '. ' , ' "1. quiUi agreo .with you, madam; but your husband's ' vicarious industry must be 'penalised, somehow,' and we couldn't, get at him properly in his lifetime. 'Let me look at the will again Yes,-he'left his property to: you for i"{e, with .remainder over to the ohild. The duty will be;2i. : per'-cent..on J2400, or a trifle of £B0 altogether." . ./ ■. "Why have "we .increased' it lately? You must have been reading the newspapers closely. . The .lincre'ase ■ 'only amounts to £lßi and, as nearly every ■ Liberal poKtician has explained time and again, the increase was.imposed because £2400 goes po niUnh. further, under the beneficent Liberal regime than it did in the . old Tory ~ days. ■ : The ■'■ only ■• things that cost more now than they did twenty years' t ago are house rent, boots, clothes, meat, '■ fist,, vegetables,, and', flour. - ■ ; . "No,,'X cannot cut out. the goodwill; I know the proviso- to Section No. 60 of. Mr;' Lloyd-'Gebrg'e's Finance Act that you . refer to.' The proviso .is "a 'remedial, one, but certainly not liberal.' Listsii , to . tliis i-VProvided thut .where it is'proved to. ;he commissioners that;the Value, of, the; property 'has' been depr.eci:' ated' by>reason- of;'the death: bivthe : ceased,'. the! commissioners, l ; in .fixing . the price,:' shall:. take such"-. depreciation, into account,' ■'■• '■■' ■.?■ ■ ; ■ ■ .■ ' ■-.'-...■' .-.-

■ "You can. look ■ through'. our Act with a microscope; andT.assure:yoii you won't, fa'nd'such' ii'. proviso there.; : . ■..:••■ ,' "Oh, ■ yes; Mr. Asqu'ith's " Government is.nominally' a liberal Gorerninent, 'hut theyare not:real: Liberal's. cAii English? Liberal is ;Ji beral with.' his'; own .money/ A l '-New. ZealandrLiberal is only liberal with other people's. There! you have the difference. ; Good 'afternoon, madam." '