BUSINESS PROBLEMS

Evening Post, Volume CXVI, Issue 102, 27 October 1933, Page 8

BUSINESS PROBLEMS

RAILWAY FREIGHT RATES

INCOME TAX DEDUCTIONS

(By Telegrapli.—Presa Asnciatiuu.) • WANGANUI, This Day.' Tho following remits were carried at the conference of the Associated Chambers of Commerce:-— That allegations of uneconomic competition by the Railway Department be referred to the executive for action if necessary. That as the provisions of the Income Tax Act relating to deductions that may not be made from gross income in calculating tho assessable income of individuals and companies engaged in trade are embarrassing to trade and operate harshly and unjustly, the Act should be revised and amended so as to permit of the deduction, from gross incomo of all items of expenditure incurred in the earning of gross income which are properly and reasonably chargeable in accordance with established commercial and accountancy practice to the year's trading and profit and loss accounts. That allowances for depreciation fixed by the Commissioner should bo revised by the entire abolition of the principle of basing allowances on diminishing values of assets and the adoption in all cases of the original cost as the basis of calculation and a reconsideration of the rates with a view to the allowances being increased in those cases where the rate would clearly not extinguish tho asset account within a period representing its lifo under normal conditions.