GOVERNMENT INCOME RETURNS

Dominion, Volume 10, Issue 3073, 8 May 1917, Page 6

GOVERNMENT INCOME RETURNS

Sir, —Will you allow me a little space in your columns in order to- point outi what appears to bo a somewhat unwise and arbitrary instruction given in the> above under Part D, Values of Livestock on Land at close of year. v wp v aro told that we are to "adopt a standard value per head, for each class o£ live stock," i.e., sleep, cattle, or horses,, etc., and adhere to Uat value per head in subsequent returns. Now, sir, I should be glad to know what consti-tutes-a standard value per head for sheep ranging from lambs' to ewes or, rams,, or for cattlej from calves to bullocks, unless it be the market value.- ■ We must bear in mind that an. "average" is not a "standard." The farmer is apparently allowed toi quote any "standard" he may choose,and which will differ possibly from thafe of his neighbour to the extent of (0 or 80 per cent. I "know of greater, variations than these now being made,- . the difference certainly not ; being in* the quality of the animals, but rather in the relative owner's ideas on the subject of taxation. The fallacy and in--justice of the system is. however, most*, clearly shown by a few entries from al stock-book. A, a dairy farmer, starts the year, with, say, 20 cows, which he puts down at £7 per head. Having some sparef land, he buys a month afterwards 20 3-year-old steers, for -which he pays £i 3 10s. per head. He gets from his cows 17 calves, which he sells'at JOsj per head—£34. Two of his cows- die, the balance, IS, with his 20 steers au the close of the year, he is to value at—hy the Government method—£7i ner head. His stock-book thus reads : £ To 20 cows at £7 :.. '. W To steers at £13 10s. 270 410 ' Bv 17 calves sold 341 By 38 head (cow's and steers, at £7) 208 Balance loss ..:.V. 113 410 To take an alternative mefhod. based! on some approach to market values. I might quote the following for the same stock i and business:— . ' £ To 20 cows at £7 .'. »140 To 20 steers at £13 10s. 270 Balance, profit, 50 460 By 17 calves sold, at 40s 34! By 18 cows, at £7 ::... 126 By 20_bullocks, at £15 !. ... 300 ' 460 Here, the bullocks being nearly a year older are practically ready fori the butcher, and really worth £18, but a low' estimate is given. Even if) put down at cost, the difference in suits from the two methods would ba £130. The cows being more of a fixed quantity, are put down at a fixed rate. Possibly my figures are • somewhat crudely stated, but the possibilities of unfairness and abuse under the Gov* eminent plan are surely evident, and a! better method is strongly called for.—* I am, etc., FARMER. Manawatu, May 4. '