TAXATION ANOMALIES IN NEW ZEALAND

Dominion, Volume 37, Issue 234, 30 June 1944, Page 4

TAXATION ANOMALIES IN NEW ZEALAND

Investigation Urged ASSOCIATED CHAMBERS OF COMMERCE

“The cabled report of the decision of the Canadian Government to set up a Royal Commission to investigate and report on taxation gives a further lead to New Zealand to take a similar overdue and much-needed step,” said the Associated Chambers of Commerce of New Zealand in a statement yesterday. , '-th® anomalies and injustices contained iu our present taxation legislation have built up over years to a point where tbe expert, comprehensive and impartial attention that could be given to them by a Royal Commission presents the only etfective means of applying the remedies needed. “The subject of taxation falls into two parts, first., the weight of taxation, and, secondly, the incidence of taxation. “With regard to tbe former, in the three years 1913 to 1915, the approximate total of all taxes raised on income was £500,000. For tbe year epded March 31, 1943. income taxes collected amounted to £26,000,000 and security taxes to £28,000,000. a total of £54,000,000, or rough l ? 1(H) times tbe amount collected in 1913 to 1915.

“With regard to the incidence of taxation. the last Royal Commission in New Zealand to report on taxation legislation was appointed in 1924, and in the succeeding 20 years there has been a steady piling up of anomalies, due to niecemeal legislating from time to time. Quite apart from the weight of taxation, these anomalies fall harshly and inequitably on a large body of people, and the nosition has now been reached where only by a complete investigation of the whole of the taxing structure by a Royal Commission can any proper and scientific overhaul be effected. “Since 1939 there has been operating a joint taxation committee composed of representatives of the Associated Chambers of Commerce, the New Zealand Manufacturers’ Federation, the New Zealand Farmers’ Uuion and the New Zealand Federation of Drapers and Allied Retailers. This committee, at a meeting drew up a revised list, detailing 50 major anomalies in our taxation law which urgently need revision. The list is by no means complete, but when it has been tested and added to it will represent a convincing and unanswerable argument in favour of the setting up of a Royal Commission on taxation and its incidence. Since the Government frankly admits many of these anomalies, while taking no action to remove them (with the exception of its recent commendable granting of a non-taxable reserve for deferred maintenance, together with some minor amendments) a Royal Commission provides the only means of securing, a comprehensive review of existing taxation legislation for reducing chaos to order. “In addition, there is a considerable body of opinion in favour of such a Royal Commission investigating the whole subject of pay-as-you-go taxation and bringing down recommendations.”