THE NEW TAXATION

Dominion, Volume 10, Issue 3183, 6 September 1917, Page 6

THE NEW TAXATION

ITS EFFECT' ON SPORTS BODIES. The various sports bodies throughout New Zealand ave perturbed at the Finance Minister's taxation proposals, cbicily because the added tax hits the clubs at" a time when a large proportion of their members are away fighting at the front. It is true that Sir Joseph Ward brought down an amendment, but there is a "curly tail" added which will trouble a lot of the clubs— including golf, tennis, bowling, and croquet clubs—when they realise the significance of the proposed incidence of the taxation a3 far us they are concerned. Clause 25 (1) of the Finance Bill provides that lands owned by any religious bodies, and used exclusively for religious, charitable, or educational purposes, or land owned by any association or body of persons and held exclusively for outdoor sports, other than horse racing, and not directly or indirectly for private pecuniary profit, will only pay half the ordinary land tax, as chargeable in spect of such lands according to the schedule set out in the Bill. But at the end of this clause there is a provision as follows: "Provided that in. no such case shall the rate chargeable be less than the minimum rate chargeable in respect of other land, or the total of the minimum rates in cases where, by the annual taxing Act, provision is made for two or more rates in respect of tko same land, or for a rate to be increased by a percentage thereof or otherwise." , The provision means that sports clubs must pay tho minimum rate according to the Act, viz., Id. in the £, with 50 per cent, added, briiißinc the rate up to lid. iu the .£, To show the effect of this on sports clubs the following small etatenient has been prepared:— Unimproved value ; Ordin- Sports of land. arytnx. club tax. £ £ s. (1. v£ s. d. 1,000 • G 5.0 0 5 0 3,000 19 18 5 IS 15 0 G.flOO (3 I I 37 10 0 12,000 100 15 8 75 0 0 20,000 199 i 5 125 0 0 33,000 412 10 0 206 5 0 From the above it wi]J bo seen that it is only when sports clubs own land to the total value of £13,000 that the full reduction is mado avnilable. In connection with the above a specific instance is provided in the case of tho Miramar Golf Club, which ordinarily would pay .£lB 18s., and under the new Act; will have to pay -filfiO. Tu the care of tlie club, its membership is Rood, but every member who has gone to the front or is in military employment in New Zealand or England has been kept on tho books as a financial member, though he is naying no subscription. The hard case of the snorts club has been taken up by the New Zealand Sports Protection League, which is making representations to the Finance Minister on the subject.