SALES OF LAND

Dominion, Volume 9, Issue 2850, 15 August 1916, Page 5

SALES OF LAND

PROFITS AND THE WAR TAX. Ail idea still seems to be abroad that rollers of land are liable to pay. the excess profits tax on the' apparent profit they may mako by the sale. It has even been said that for this reason many intending sellers have withdrawn their properties from sale. ' This point was referred to the Commissioner of Taxes yestifday. His reply was that the excess profits tax was an incomo tax purely, aud would not bo chargeable on tho amount realised from tho sale of land, which was iii the nature of capital. If a man sold a farm, for instance, at. a price considerably higher than ho had paid for it some time previously, his profit would not be assossed for the war tax of 45 pox oont. In most casos : such profit ' would, in tho nature of things, represent the earnings of tho farmer's management or of his own labour. Tho Commissioner stated, however, that the war tax would bo lovied upon tho profits of sales made by men who wero going in for land speculation a£ a business, buying land, holding it for a mouth or two, and selling again;