INCOME TAX EVASIONS

Dominion, Volume 13, Issue 73, 19 December 1919, Page 8

INCOME TAX EVASIONS

ENORMOUS SUMS INVOLVE!). As the result of representations that have been mad*, tho Commonwealth i'reasury has ordered an investigation of the accounts of certain oversea companies doing a largo business in the Commonwealth with a viow to ascertaining if evasions of income tax on a large scalo have taken place, stales tho Melbourne "Age." The sums invoked run, it is alleged, into six figures. In tlie course of a letter dated November U, v Mr. A. E. Frood, secretary of the British Empire Union (Australian branch), writes to the Prime Minister on a kindred sulyeot, as follows:—"The British Empire Jnion affirms the principle that inconio earned in Australia should jiny income tax to the Australian Exchequer. Generally the method of evasion adopted is as follows;—A. Co. is a trading concern incorporated outside Australia; B. Co. is a business or agency opened in Australia under probably an Australian name \'such as ,the late Australian Metal Company), whose shares are owned by A. Co., and who sell in Australia the goods shipped by A. Co. "The evasion wo complain of may bo occasioned in various ways, the most common being by the inflation of the invoice, prices of goods shipped by A. Co. to B. Co., resulting in if. Co.'s accounts showing but littlo profit, or perhaps, a loss, on the year's working. It appears to bo unnecessary to illustrate this, ts I am informed that the Department is aware of the practice, and 1 belfeve, is looking for a remedy. This union is cf tho opinion that tho Government, in order to mako taxation equitable, and specially in t/> present time of financial stress, should take immediate steps to block the open road trading concerns aro able to traverse to the detriment of tho Australian Government finances, 1 understand that there is good reason for the statement that there are certain peoplo who are taking advantage of this."

The letter proceeds to indicate certain difficulties attending the investigation now undertaken, and concludes with a request that honest contributors to the revenue be protected.

The Fulhani Council nsker Hid L.C.C. to refuse consent to the erection o£ a new kinema near the Town Hull, as the materials mid labour nvailablo were needed for housing purposes. Tlio National Association of Goldsmiths lins raised JJ1470 and presented 1243 Braille watches to blind soldiers. Tin? Treasury, instead nf remitting the import duty'on the watches, paid'.£2lo to tho fund.