THE WAR LOAN

Dominion, Volume 11, Issue 184, 24 April 1918, Page 5

THE WAR LOAN

POINTS OF DOUBT EXPLAINED

BY SIR JOSEPH WARD

In an inlerriew yesterday on the point* raised in tho leading columns of The Dominion of April 22 regarding the compulsory conditions o£ the War Loan, Sir Joseph Ward said: "The compulsory provisions of the Finance Act, 191S, provide that tho amount which any person may bo required to contribute shall not exceed six times the yearly average of tho land and income tax (exclusive- of excess profits duty) paid or payablo by him for tho three years ended March 31, 19IS. Tho term ''income tax' includes special war tax, as the special war tax is referred to in tho Act of 11)17 as a tax levied by way of income tax, and therefore forma portion of tho incomo tax payablo by tho taxpayer. , ~ ~ ■ "Tho extent to which contributions mado to previous loans will be taken into consideration by tho Commissioner of Taxes is a matter which is govorned by tho discretionary powers given to tho Appeal Board. "Tho object of tho compulsory clauses is to compel tho financial shirker to contribute liis fair nhare of tho burdens cast iipo-'i tho community, but not to penalise a contributor who may have subscribed to the fullest oxtent of hie ability to a previous War Loan. Tho public, therefore, :nay rest assured that thoso who liavo Jiberally subscribed to previous loans, and to whom it would bo difficult to furthor subscribe to the 1917 loan, will receive full consideration of any representations which they may find it necessary to make to tho Commissioner of Taxes or tho Appeal Board, and that no injustice will bo done. "Tho article in Tire Dominion, in- stating that Hio provision contained in last year's Section 40, excluding tho excess profits tax from the basis on which tho levy is to bo made, is now repealed, does not givo tho correct position. It is true that Section 40 of last year's Act is repealed, but tho provision regarding the exemption, from tho basis of lovy, of thft excess profits tax lias been re-enacted in this year's measure; consequently,• the basis 'is simply tho average annual land and incomo tax (excluding excess profits tax) paid dicing tj>o past three ywira. "I may further stato that it will besome weeks beforo tho machinery for putting the compulsory- clauses into operation will bo ready, and consequently sufficient time will bp allowed fur any persons who may be in doubt regarding tlioir obligations to communicate .with tho Trcasiry or with tho Commissionerof Taxes with a view of ascertaining their liability."