LAND AND INCOME TAX BILL

Dominion, Volume 14, Issue 17, 15 October 1920, Page 8

LAND AND INCOME TAX BILL

PASSED BY UPPER HOUSE

LOCAL BODIES' DEBENTURES"

! Sir Francis Bell yesterday moved in the Upper House the second reading of the Land and Income Tax Amendment Bill. Referring to the clause that provides that two or more companies with substantially the same shareholders may be treated' for taxation purposes as ono company, Sir Francis, Bell said that there must be a law to prevent evasion of income tax by the- formation of two companies. "I doubt," he said,' "whether; the law as it is framed here will ' prove strong enough to prevent it,' but it may be given a trial." The hon. gentleman explained to the Council most of the important clauses of the Bill. '

Somo of the arguments used in the -Lower House' in regard to the position of local authorities under tho proposed taxation, were repeated by councillors. Sir John Sinclair claimed that the local authorities' complaints about ture taxation were due to misunderstanding of the Bill. The Bill would really ■have the effeot of making local bodies' debentures more attractive than most other investments.

Touching the same matter as Sir John Sinclair had referred to, Sir Francis Bell paid: "The object of this legislation has been, it is true, in part to make the holder of debentures payable to bearer pay income tax, but largely the fixing of that tax in the form in which, it now stands }s for the purpose of inducing large investors to place their money in local authorities' securities. That will be a 'dead l<gs to the • Government."

- Sir Walter Buchanan expressed the opinion that the definition distinguishing \ between earned and unearned income was liot sufficiently clear. - There were people, he said, who had come to this coun,tiy without any income other than that Which they made by their labours.' They Succeeded in. making by their exertions Jnoney that they invested, and to-day . they were living on the income from the Investments. Surely the income from such money made by a man in his lifetime was as much "earned income" as anything could do. He did not think that tho clause made the position, clcar ior just.

LSir Francis Bell said he sympathised : a certain extent with the opinion by tho hon. gentleman. He .-thought, however, that, a distinction *mght. to be made between the case, say, .of a doctor, making ,£IOOO a year by the [practice of his profession and the case Jof a man living on ,£IOOO a year from investments. It was evident that the 1 doctor was by much tho worse off of'tho two; as . presumably he had to save for .'his family, while the other -man had 'already, made that provision. The Bill was put through its final stages and passed. HIGH COMMISSIONER'S OFFICE STRONGER STAFF SUGGESTED. • tt'T 1 " 1 ' is hein{: dons to strengthen the High Commissioner's office in England, (particularly on the commercial side?" asK'ed Mr. O. J. Hawken (Egmont) in tne House. The member added that when .tie Government wanted information about important commercial matters it had to cable for it. That ought be necessary. The Dominion ougnt to have men in London capable oi fowling important information along intnout being asked for it. The Prime i Minister replied that Cabwaiting for an expression oi opjnton from the High Coinmi6sionei • (Sir James, Allen) before doing anything in the direction suggested. He could mate That an officer had already ijeen selected to go to London to assist in connection with emigration to New Zealand. There had been difficulties in the Felection of immigrants for New Zealand, and it was considered that the officers of the High Commissioner's office were not sufficiently in touch with jtlie Dominion. CONTINUATION CLASSES PROVISION FOR GIRLS SUGGESTED. ' Further provision for continuation •classes for girls up to the age of eighteen years was suggested to tho Minister of Eduoation in a question which Dr. A. K. Newman (Wellington East) asked in the House of Representatives yesterday afternoon. Dr. Newman said ho had been asked by a number of ladies

to bring the matter up. The age men- / tioned was an important one in tho lifts of a girl, and it would be a very great advantage if there could bo continuation schools. Mr. Parr said that at the present time if tho eehool committees wished to have continuation classes they could do 80.

: Hon. J. A. Hasan (InvercargilT): That has been altered. It is ft matter for the Government and not for the committees. Mr. Parr: "I think that is a reference the larger question whether tliere should be compulsory continuation ilasses." There was no question, he

proceeded, that tho Department and tho Government would havo to faco as soon as possible the question of , extending the school age and adopting a system of oommilsory continuation in this country. There was one consideration, Bowever, affecting tho extension of the age, Thero must be the buildings and the teachers. Tho problem, it appeared to bim, was not so difficult as some people thought. It was,engaging the at tention of the Department at the present time and he hoped to be able to make a statement on it setting forth tho policy of tho Government. ■

The Legislative Council yesterday pastel the Bay of Islands Harbour Bill' and i read a eeoond time the Giaborno Harbour Bowd Amendment Sill.