FARMERS AND INCOME TAX

Dominion, Volume 21, Issue 110, 7 February 1928, Page 3

FARMERS AND INCOME TAX

THE POSITION IN SOUTH AFRICA HOW ABOLITION WOULD OPERATE A short while, ago the African Parliament was divided not so much on sentimental as on economic lines. A, motion was handed in, reading as follows :— “That the Government be requested to consider the advisability of exempting farmers and farming operations from payment of income tax.” No doubt readers will be interested to learn the .approximate position in regard to income tax paid by farmers and that paid by other sections of the European population (says “Facts and Figures’’ in the “Cape Times”). From statements made in the House it is learnt that the income tax collected from farmers amounts to no more than from £60,000 to £BO,OOO, and that the costs of collection incurred are not far oft that mark. Consequently’ it appears to be justifiable on economic lines to propose the abolition of a tax which serves so small a purpose. The country would be saved much bother and expense. We may now ask the questions: How manv farmers are paving the income tax 'of £60,000 to £BO,OOO ?_ What is paid by our European farming population as a whole, inclusive of European employees on farms, women and children? How much is paid by the European population in our urban centres; and how many' are contributing to the latter sum? The answers to these questions will throw some light on the financial standard of our European rural population as compared with our urban inhabitants. In countries like -South Africa, so vast in extent and so varied in soil and climatic conditions, it stands to reason that in the endeavour to obtain statistics, much as to be accepted as approximate. We cannot blame our farmers that they are loth to keep proper books and that the information supplied by the Commissioner for Inland Revenue in his annual reports, is about the only source we can draw upon so far as figures 'in incomes and taxation are concerned. The Farmers’ Position. The Union Year Book tells us that there are about 90,000 occupied farms in the Union, of which about 60,000 are occupied by owners, while about 18,300 are leased by occupiers; about 6-150 are occupied on the “share" system and about 5600 are managed byoccupiers (or other persons. We shall not be far off the mark by stating that there are about 90,000 farmers in the union, more or less independently engaged in agriculture, and conducting the business of farming either as manager, tenant, or owner. The 163,000 Europan males, employed in agriculture, we may- safely consider to be exempt from income tax. Their earnings are small and although there are no doubt exceptions to the rule, it will not be gainsaid that the great majority of our agricultural workers are earning less than £3OO or £4OO per year as the case might be. Distribution of Taxes. The report of the Commissioner for Inland Revenue (1925-26) states that tlie total number of taxpaying individuals in the Union was 85,729, while a total of £1,858,882 in taxes were collected fiont them. That being so, we may deduce that the £6o,ooo—£-80,000 as mentioned in Parliament, was most likely

paid by some three to four thousand tanners.

This reveals the fact that only about 5 per cent, of our farmers pay income tax and that the amount paid by tliern is about 3j per cent, of the total income taxes paid by individuals. We may also remark that the total number of white rural population is 671,980, or about 40 per cent, of our total European population. In view of the figures disclosed, we may ask : What will be the effect of the abolition of the farmers’ income tax ou farmers and others ?

It is onlv fair that one section of the public 'should be treated on an equal basis with any other section. Strictly speaking, therefore, the abolition of income tax for farmers cannot be justified. H they are poor, they do not pav. If they can afford to pay they ore not poor, and should be treated in the same light as our townspeople.

Collection Costs. Although the argument may hold good from a strict honesty point ol view, wc cannot close our eyes to the advantages of an abolition, viz.: l'i_rstIv. the'abolition of the Income Tax, from the Treasury point of view, is perhaps justifiable, although 1 am not aware of the exact details in regard to tax collected and costs of collection. In the event of the costs of collection approximating to the taxes collected, it will hardlv be worth while to maintain a staff absorbing the moneys collected. It would mean that fanners keep civil servants alive and that tnonev is being spent largely on unproductive purposes, whereas Hie money in the hands of the fainurs would be made productive to the. benefit of the whole country. Secondly: It is a well-known fact that farmers often have to incur considerable expense in regard to the fil - ing in of income tax returns by lawyers or others. Surely, money spent in ns direction is not sufficiently proc . i. '’’conversely, we may draw rea ! ler j’ attention to the great indirect disadvantage bound to follow in the wake of the abolition and that is. Ihc gradual slackening of the faimeis attention to bookkeeping matteis ho - wer small this attention m the past might have been. , Although the Income lax I 1 ’ tions do not concur with scieiitificall accurate bookkeeping principles, it must be admitted that even , the <1 os rudimentary form of ” must needs leave its benefic.al stamp on the farmers’ management. \\ c a living in times of great drought and it is of the highest importance t< umw how far State assistance rendered lo farmers will be productive ol ot- Jis vital to Hie country s know how far money is being spent on doles and how far on loans; based m sound repayment systems. It ■ vital it follows that we want facts and figures about farming. Otherwise ho) are we going to get then. < han through the intermediary of bookkeeping. In case the income tax is ab° I could strongly urge that the matter of bookkeeping should be ea J' lv tackled than has been done h t ert The Officer of Census and Statistics supplies us with much useful statistics regarding the production and ° ld P at b our rural areas, but wc also want to b enlightened on the cost to prodin.c. I several reasons we cannot advocate < land tax as a substitute of income tax in this country. Out climate and our soil are too varied to allow a land tax to be fair to everybody concerned. In some way or other, bookkeeping should be introduced by the public services or by the schools and universities. A propaganda campaign Mould be hiffiily commendable and the Office of Census and Statistics or co-operative societies would reap the fruits as moie farming statistics regarding costs become available. . In Europe and the Luited State.

EMPRESS THEATRE. ‘Tlesurrectiou.” United Artists’ screen version of Count Leo Tolstoy’s worldfumous elory, is the big feature now screening aL tho Empress Theatre. Produced by Edwin Carewe, it is one of the biggest pictures of the year. Hod La Bocciue is tlie star of “Resurrection.’ He poatrays the character of Prince Dmitri. Dolores del Rio lias the role of Katusha Maslova, the young peasant, girl who loves and is beloved by Dmitri. -the story ol “Resurrection” leads these two characters from the beginning of their young and innocent love through, to the highly dramatic scenes of disillusionment. and then on to the “Resurrection itself and a logical ending. The balance of the cast oilers excellent support to La Roca tie and Miss del I‘io. They are Count Ilya Tolstoy, who plays the part of his noted father in the prologue, Marc McDermott, Vera. Lewis, Lucy Beaumont. Clarissa Selwynue, i.nd Eve Southern. The supporting programme includes a gazette and scenic. while appropriate musical numbers arc supplied by the Empress orchestra.

QUEEN'S THEATHE. Funny as Ted .McNamara and Sammy Cohen were iu “What Price Glorj',” eclipse themselves in “The Gay Itetreat, the hilariously funny war-comedy now scrocniiig: at the Queen's Theatre. The pair start off Tor France to look, alter a sleep-walker who was their civilian emplover. and the absurd adventures tney ’manage to meet with makes the picture one of the best and most amusing war comedies yet produced. The end big feature is “Tumbling Kiver. a thrilling Western, starring popular loin Mix. Good supports and music complete the entertaining programme.

ms MAJESTY’S THEATRE. . Now in their tinal week at His Majesty’s Theatre. Gayle Wycr and his popular Band-Box Revue Company are presenting one of the- best programmes. The first half consists of an old-time nigger minstrel show. And the old soiigs. “Oh, For the Life of a Minstrel. ’ Old Black Joe.” “Aly Ohl Kentucky Horae, “Wav Down Yonder,” and “Laughing Pete” are greatly appreciated. In the second half. “On the Beach at Waikiki, a clever farce, is produced. The plot circles round a newspaper reporter who is in love with a beautiful blonde, and the obstructions which are put in their way. Further interest is added by the inclusion of Miss Muriel Wilton, a four-teen-vcar-old YVcllngton girl, who appears as a" solo dancer. On Saturday next at the matinee, New /Sealand's own comedian. Joo Brennan, will open a short season with his novelty, comedy and dramatic revue company.

KING’S THEATRE. . Ramon Novarro fully justifies his exalted position on the screen in his newe-i picture. “The Road 1° Rcinanye, which is now showing the Kings Iheat’e. The story is ir.dcel one to ♦hrill the hearts of young mi l old alike-a tale of bucetnieers 'nd their island Inn; in Caribbean 'Sen. of a scheming Governor, a beautiful girl, a handso lie soldier ot fortune, who rescues the girl after many bewildering perils, and the sweet, inspirinc love at the finish. In the jole of Captain Jo.-o Armand). Ramon Novarro is brilliant. He is •-•-Iso Hio tender demoted lover to the life. Opposite him, Marceline Dav is both talented and winsome. Hov D'Arev invests the pert ol Don Balthnser. the" cunning Gqvernoi, with inimitable realism. . providing a splendid foil tor Novarro s forceful .u ting. In support are a. gazette. Zealand scenic. New Zealand topical, and comedy, with "xcellent incidental music bv the orchestr:'.

mucli valuable information as to the cost of running farms ami the profits or losses of districts is already available; if it is our desire to keep pace with modern requirements, we shall be wise to pav more attention to the economic side of farming than has hitherto been the case.