WAR TAXATION

Dominion, Volume 10, Issue 3182, 5 September 1917, Page 5

WAR TAXATION

TBE FINANCE BILL SOME ADDITIONAL AMEND- .■ .. MENTS •/■•'■;■ Amendments to the Finance Bill were introduced by Governor-General's Message jn the House of Representatives li,st evening. Compulsory Subscriptions. In connection with tho provision for '. bompulsory contributions to war loans, an amendment is made in the date of assessment The provision applies to persons whose, taxable income was Dot less than for the year ended March SI, 1910.v The year mentioned originally .{Eras. 1917. ,'.- \ ■ '' . " Some new sub-clauses relate to the (Appeal Board-' which is to hear appeals against compulsory contributions to the War Loan. They read as follow-:—. "For tho purposes of this section there is hereby established a special' Board of Appeal, consisting of the Controller ' and Auditor-General (who shall bo the chairman of thoboard), the Coinmisioner of Taxes, the Secretary to-the Treasury, . nnd the Government Insurance Commissioner, . "Three members of the board shall iform a quorum. Every question before ,the board 6hriir be "decided by a majority of.tho votes of the members present. The ehfiirman shall havo a deliberative vote, nnd, in the event of an equality of voting, shall have a casting vote also. "In the absence of the chairman from tiny meeting of the board the Comraiseioner of Taxes shall act as chairman. "If at any time,any member is absent, or is unable to net, the Minister 1 hf Finance may, by warrant under his hand, appoint some person, as the deputy 'of that member during his absence or ■'.inability.' and tho deputy so appointed . shall, while the warrant of appointment ■remains unrevoked, have an! exercise nil the powers nnd functions of the mem--be'r whose'deputy he is, "Every appeal under this section shall Tjs board and determined in -private. "Except ,as otherwise, provided herein, ilip bewid shall regulate its own ■ procedure.". . The Appeal Board is to have the powers .of a Royal Commission. ....'■■ ';.-.':■: ■-."'.• The War Tax. Alterations are made in the schedule of the Finance Bill relating to_the special war.tax. 'The clauses now read ,IS 'follow: — .-'••' 1. On incorao assessable under Sub- ! section (3) of. Section 113 of fthe Land and Income Tax Act,. 1916, tho I special ••' war tax 6hall be at: the rate'of Is. 6d. 'for every .£1 thereof. 2. In all oases other ; than those ' referred to in the last preceding clause the rate of special war tax shall bo determined! as follows :—!■-.''■ (a) Whero the income on which the special war tax is payable does not exceed £100 the rate shall be Gd. for every JCl' thereof, increased as pro■ridca in paragraph (c) hereof. (b) Where tho income on which the special war tax is payable exceeds ■■ MM tho rate shall be 6d. for every : £1 thereof increased by one twohundredth part of Id. for every £1 in excess of .£4OO, but so as not to exceed 3s. in tho .£l, and further in- ' creased as provided in paragraph (c) hmoof. . -i• .., , ' (c) To the Tares prescribed by ~ paragraphs (a) and (b) hereof respectively there shall be added an. '•• Additional late cental-to 50 per cent, thereof, and tho total shall bo the rn.to of special war tax payable by - tho taxpayer.. I Exemption for Children. , Tho special exemption granted in respect of the dependent children of a paver of income tax is extended to cover all" children under sixteen ■years of age, regardless of tho income of tho taxpayer. Protection for Banks, • Protection is provided for banks in Irespect of advances to clients' for in- ,'. vestmont ,for wa.r purposes. Tho Hcgis- ' trar of Inscribed Stock is empowered to from & bank a certificate of lien, /to tho effect that the bank has advanced to a person or company tbo whole, or such, part' as may bo specified, '•'of' tho. money required for investment, in tho War Loan. The illegistrar' will then enter upon the ftegister ,of Ir scribed Stock "a memorau-- ■ duin as to such certificate of lieu, and thereafter, until tho certificate of lienis withdrawn with tho consent of the bank, no dealings with the inscribed Btock shall be recorded-by the Registrar, and iio stock-certificate or certificate of title shall bo issued by him in ltspect of such inscribed stock except with the consent of. tho bank." ,

Other Provisions.— The State Fire 1 Insurance Office is to '.pay income'tax on the same basis as a company. . !, ~, t Kpeoial provision is mado with respect to the incomes of foreign insurance companies: The taxable inconTe is to he } 'diniinislied by an'amount eqnal to two ' per cent, of the company's investments m New .Zealand, the income from which is not exempt from taxation. _ . The fees payable on warrants for making cigarettes by hand are increased. ■^ The needs of, local authorities which depend -upon goid revenue are met by _£ -' ' provision that • "duty shall. T» payable on gold held on behalf of the Imperial Government by any bank carrying on the business of banking in New Zealand as if that gold had been exported from •" New Zealand." This .provision vill operate for the period of the .war .and six months after. > .!'