INCREASED TAXATION

Dominion, Volume 13, Issue 302, 15 September 1920, Page 8

INCREASED TAXATION

CHAMBER OF COMMERCE VIEW

"lIGIITENING-UP" OF OLD METHODS

RECOMMENDATION TO GOVERNMENT

Consideration of tho Land and Income Tax Bill, following tho addresses of Messrs. M. A. Can- and J. T. Martin, delivered before the Wellington Chamber of Commerce Council on Monday, and published' in yesterday's Dominion*, was given last evening by the council, a largo number of members attending. The president (Mr. M. A. Carr) occupied the chair. Before general discussion commenced. the opinion was expressed that the Bill would seriously ait'ect small shareholders in big companies, and also (lie men with incomes over the JEGOOO The secretary, Mr. H. D. Victory, explained that tho commercial community had hoped that thero would be new methods of taxation. This hope had not been consummated; and what had happened was a "tighlening-up" of old methods. He referred to various clauses of tho Bill, as examples, specially mentioning those relating t<? interest payable out of Now Zealand and the altered method of taxing debenture interest Kbgarding the latter, he foresaw a diilicult position arising should the Bill bo passer!. He considered that the principle of income taxation had not improvod. Inure has been no attempt to improve it, ho added. "Things are drifting on in the same old way." Mr. Vickery reierred to the clauses affecting principal and a»ent two companies ot substantially the same shareholders being treated as one and income from shipping earned outside Ne«r Zealand ea being indieat ve of the "tightening up. The mam objection, he reiterated, was the absence of the improvements promised and antici--I>:'i member: When promises were made it was not thought the revenue required would amount to such a gieat miniMr Vickery: Every year since the outbreak of war tho expenditure has been ' nr ° C 1 Municipal Trading.

Various phases of the question with by Mr. C. M. Banks, who fomVned tLt the public had been lei to believe that a reduction J\o u W « made He agreed with the attitude of the Bill to municipal and local body . pmntible However, he suggested he could be. assessed in income tax fo the extenii of the writing down. A member: Is tlhat mandatory? , It was explained that the clauso :n the Bill gave the option in the word may, referred ib the sP I . of large companies, suggesting that what might'occur would be of .the companies in order to lessen tlie .amount of tax paid. Relation' Between Taxes, Mr H D. Bonnetft sa"'d that the chairman in iiis published address had failed to make reference to the relation between the land tax and the income tax. He cited the case of a firm, holding its own freehold premises, deriving income from trading. It would have tb pay income tax at the highest rate and also land tax at that rate. Tho <*nW t:ou rp °J the lhvo forms of taxation would pres3 ''The question of debenture taxation wa« further discussed, the opinion being that it would affect companies msulcraWj. The chairman, in reply to Mr. Banks, said he considered that tllie latter had expressed the view that the taxation wa fa't •Tt had, lie maintained, never been fair. The taxation should be distributed aS Mr lr c M. P Bowden (thought the chamber should ask the Prime Minister to set up a taxation commission. He congratulated the chairman on his address, and advocated that some of Mr. Carr s suggestions should be impressed on those concerned, w'.'.lh special reference to rates of depreciation.; He urged that a clear understanding should be arrived-at regarding war bonds. The method of taxation was wrong, said Mr. S. S. Dean. The Government should consider an export tax. As it was, the man in the street had to pay, and the cost, of Living undoubted v was put up by tho high taxation, which- at tho same'time augmented extravagance. He moved: "Th«ni ft siifr*Coinip-tt6o of . the chamber be appointed to give evidence beforo the Bills Committee, alio, to. rf quest Shat the Government should immediately se!> up a commission to go into the question of taxation." Mr. Bowden seconded the motion. _ Mr! Bennett suggested that tho mofjon !>•» "that the Government should set up a commission." It was preferable, to pass a rcsolut'on ihat would 50 straight to the Government. Something more than a sub-committee from tho council was required. Tho secretary that Mr. Massey hnd virtually "refused 'to sot up a commission. ' Tho motion was amended, as follows: "That in the opinion of the chamber, tho Government should immediately set up a commission to inquire into and report iiiion the incidence of taxation in <\his country, such report to lie availaulo before tho Land and Income Tax Amendment Bill be further proceeded with," and (2) "that the chamber take steps without delay to obtain the opinion of ilhe associated chambers of commerce on tlip Bill." This was carried. It was decided that the president, Mfw. I.ongnet. A 7 ickery, and Bowden should express tho chamber's view before the associated chambers..

INCIDENCE OF TAXATION AUCKTiAKD CHAMBER'S VIEW. .Br Telcitrauh—Press Asjociatlon.. Auckland) September 14. The proposals of the Land and Income Tax Bill were discussed to-day hv ft racial enmmittee of tho Auckland Cham, ber of Commerce. Certain of 'ho provisions were adversely criticised, but the principal conclusion ■ was that tho vboio incidence of taxation should be reviewed. Tho following resolution' was carried:— "The Auckland Chamber of Commerce, bavin" considered tho Land and Income Tax Intendment Bill now before Parliament. rwets that no proposal tn aller the 'incidence of taxation, by transferrin" the responsibility for payment of income tax to the ultimate reoinient of the income, has been attempted. It feels •bat tlie present incidence presses unnecessarily harslilv upon the consumer mid' materially contributes .to tho increase W the cost of living. The chamber respectfully urges the calling togetbex of n committee of representative business Wen having experience of the subject of trcition to confer with the finance Minister and 'Coumrssioner of Taxes .mon the whole rmestion. If it is not possible to delay tho passage of the Bill until such conference can tie held, the chamber draws tho attention of the rnancc Minister to various provisions of the Bill which it considers require reconsideration." Tho resolution con'cludes with tho following:—"Generally tin; chamber recoenises the necessity for the provision of tho requisite revenue for tho need* of tho Government, and is concerned only in assisting in tho raising of such revenue in the most equitable manner."