DEPRECIATION & INCOME TAX

Dominion, Volume 13, Issue 301, 14 September 1920, Page 4

DEPRECIATION & INCOME TAX

ADEQUATE AND VARYING BATES DESIRED.

The clauses in the Land and Income Tax Bill affecting depreciation were referred to by Mr. M. A. Carr in his address before the Wellington Chamber of Commerce Council yesterday., "Under the Act of 1916." said Mr. Carr, "the Commissioner, may allow snch deduction for depreciation as he thinks iust 111 resnect of implements, utensils, machinery, or premises, and section 16 of the Bill provides that where a taxpayer has sold premises, implements. utensils, or machinery at, «■ price in excess of the amount to which the value of those assets has been reduced I>y denreciation allowances, tho Commissioner 111 av make a revised assessment and recover additional income tax. , "The chamber has for years advocated that allowances for depreciation should be put upon a better basis. In tho Commonwealth of Australia the Taxation Denartment has compiled a comprehensive list normitting denreciation uv> to 25 p?r cent. 011 the diminishing value of manv articles used ill producing income. Such a schedule of rates is higlily desirable in New Zealand, and it is trusted the Commissioner will favtourablv consider the suggestion and put nepreciation allowances on a better basis, Income taxation is now verv lieavy and manufacturers using plant and machinery feel that not only should the Department allow adeauate and varying rates of depreciation according to tlie estimated life of the plant, but the allowance should ,ba 'extended to other assets employed in producing income."