DEATH DUTIES

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

DEATH DUTIES

AMENDING BILL INTRODUCED

INCREASED RATES" ON LARGE, ESTATES

_ A Bill amending the death duties was introduced in the House of TRepresentatives last night. The Bill increases the estate duties, the succession duties, and the gift : duties, and it is estimated by the Prime Minister to produce from ,£200,000 to -£250,000 extra Tevenue. This is approximately the sum required to cover the increased subsidy on butter., The Prime Minister, when asked by the Leader of the Opposition. (Mr. IVilford) to explain the BiLl. stated that the Bill had. just reached him. and he was not ready to discuss it in detail. Ho did not wish to suggest that the extra money was being raised for the purpose of meeting the arrangement practically made tho previous day regarding butter. The money was required for the purpose of strengthening the Dominion's finance. It was just as well to be candid on that point. The demands ujwn the Treasury had been enormous during tho last three months, and many of them had been unavoidable. He did not think that the rates proposed in the Bill were excessive. He had looked at the rates charged in other countries. He could not say just how much the Bill would produce in the way of extra revenue. He had arranged with tho law draftsman to get the Bill ready hurriedly in accordance with nrransements already made..: It had been submitted to the Finance Committee of the' House. Mr. Massey mentioned that the exemption was being raised. Ho believed that tho measure would produce from .£200,000 to-.£200,000. Tho Bill was introduced and read a first time.

The Bill proposes that estate duty shall commence to bo charged when the final balance of the estate exceeds ,£IOOO. The present exemption is AWfl.. A comparison 'of the schedules gives the following result: •,

Balance of Present New Estate. duty. duty <£500 to XI,OOO 1 p.o. Nil .£IOOO to <£2,000 2 p.c. 1 p.c. '•£2OOO to .£3OOO p.c 2 p.c. .£3OOO to XI,OOO 3 . p.c. 3 p.o. .£4OOO to ,£5,000 31-3t>.c. 4pc .£5.000 to .£6,000 3 2-3 p.c. 4 kc. •£GDOO to AOOO 4 p.c. •5 po =£7000 to ,£B,OOO _ 41-3 p.c. 5 p.o. £8000 to .£O,OOO 4 2-3 p.c. 6pc •£9OOO to ,£IO,OOO 5 . p.o. 6 p.c. The prespnt scale continues to rise and reaches 7 per cent, on an estate of .£20:000 to ,£25,000. The new rnto for such an festate is 9 per cent. The present rate on an estate of .£50,000 is 8 2-3 per cent., and the new rato is 11 per cent. The present rate on an estate of .£BO,OOO is 10 M per and tho new rate is 17 per cent The maximum, rate of estate duty under the present latf reached on'an estate of ,£145,000, is 15' per cent. Th» now maximum is 20 per cent., Teachcd on an estate of ,£IOO,OOO. The new scale of succession duty in tin case of a wife reduces the exemption flora ,£20,000 to .£IO,OOO, and provides that Hie duty shall lj© 2 per cent, up to •£20,000, and 4 pew cent. If the valuo of the succession excowls .£20,000. If the successor is the husband, the present law allows an exemption of X2OO and charges 2 per cent, duty above that sum. Bill increases the Exemption to .£SOO and fixes the duty as follows:— Up to ,£ISOO, 1 per c®nt.; over .£ISOO and under .£2500, 2 per cent.; over ,£2500, 3 per cent. If the successor Is tne child or grandchild, tho present exemption is ,£SOOO, with 2 per cent, duty on successions oxccieding that amount. The Bill proposes to lower the exemption to ,£IOOO. with duty as followsunder ,£SOOO, 1 per qent.; over ,£SOOO but under ,£IO,OOO, 2 per cent.; over ,£IO,OOO but under .£15,000, 3 per cent.; over .£15,000 but under .£20,000, 3>} per cent.; over ,£20,000, 4 per cent. Increases are, made also in respect of other classes of successors, An amount equal to 10 'per cent, of the succession duty is to bo payable in addition to the ordinary rates in jjjspect of any moneys exceeding ,£IOOO payable to any person domiciled out of New Zealand, not being the wifo or husband or close relativo of deceased. Tho present _ Tate of gift duty is 5 per cent, of the gift. The new rate is 5 per cent, up to ,£SOOO, 7i per cent, up to .£IO,OOO, and 10 por <wnt. over .£IO,OOO. THE PENSIONS LAW A WEAKNESS SUGGESTED. A wf.'ak point in the pensions law was pointed out by Mr. C. E. Stathnm (Dunedin Central) in the House of Representatives, The Government pay's pensions in respect of the childftn of a widow. But it pays no pension to the children if tho mother has l>ccn divorccd 'before the death of Iho father. Mr.. Statham said that lie had hem brought into touch with a case where children were, suffering hardship from this cause. Sir William Herries replied that ho would look into the matter. He had heard of no other case of .tho kind, and it was an axioriT'ftmonfl lawyers that hard cases made bad law 6. WIDER BORROWING POWERS REQUEST FROM A FIRE BOARD; The Fire Brigades Act limits the boirowing of fiijj boards outside the chief centres to and this limit, owing to the increased cost of building and materials, is proving too low. The matter was mentioned in tho Houso by Mr. S. G. Smith (Tnranaki), who said that the New Plymouth Fire Board wished to provide quarters for married men, but found that the law prevented an adequate sum of money being raised for tho purpose. He asked tho Minister of Internal Affairs to consider favourably the request of the Fire Board that tho limit,should be raised to .£20,000. The Hon. G. J. Adensron replied that hn was prepared to consider tho suggestion favourably. He understood that th;e New Plymouth Fire Bonrd l<ad drawn up plana and was ready to proceed with the work.