TAXING WAR FORTUNES

Dominion, Volume 13, Issue 130, 26 February 1920, Page 5

TAXING WAR FORTUNES

LARGE SUM EXPECTED TO BE RAISED. (Rec. February 25, 9.50 p.m.) i London, February 25. The Select Committee on taxation of war fortunes has opened its investigations, under the chairmanship of Sir William Pea.rce. The prineipi:l witness was Sir John Anderson, chairman of the Board of Inland Revenue, wjio estimated the cost of the 6cheme to bo one-tenth to onefifth of 1 per cent, of the amount collected. He. anticipated that the tax would be paid to a considerable extent in kind, s.uch as war loan securities. Ho suggested that provision be made for payments by instalments, the liability being at the outset, and (lie payments' spread over ten years. He thought tho valuation would affect 1140,000 persons, lint many individuals had several valuations on ships, furniture, jewels, estates, etc.. Sir John Anderson svggesled consideration of some form of "floating chnTge," which would sufficiently safeguard the interests of the ■Crown vithout interfering with legitimate business operations. He considered the tax should not. fall exclusively on war profits, but also deal with the increase in wealth, without r<"rard to how it .was bronght about. The Department could not discriminate between wealth prained bv ouestionablc means, wealth ncnuircd simply from war, and wealth accumulated by exceptional personal effort and pplf-dnnial. Asked what sum he expected to ohl«in, Sir John Anderson replied: "One thousand millions."—Aus.-N.Z. Cable A&sn.-Rcuter.