EXCESS PROFITS

Evening Star, Issue 23697, 3 October 1940, Page 8

EXCESS PROFITS

THE .BILL INTRODUCED SUMMARY OF PROVISIONS [From Ouk Parliamentary Reporter.] WELLINGTON, October 3. The Excess Profits Tax Bill was introduced in the House of Ueprcsentatives this afternoon, and is in charge of the Minister of Finance, Mr Nash. The measure provides for the fixing of standard income based on the average of the three years, 11)37-8-9, plus 30 per cent., or best of the throe years, whichever is the less. It will provide in connection with companies, whore they cannot select the average standard income, that they can have (i per cent, on the actual capital operating in the company, namely, the difference between their assets and liabilities, less the social security and national security taxes and the special war tax on incomes. There is a provision in connection with another type of taxpayer who has capital invested in a company, and is entitled to payment for personal exertion. These can have a sum assessed by the Commissioner of Taxes for their personal exertions, being not less than £SOO and not more than £I,OOO. There will be no excess profits tax m any case on incomes of less than £SOO. The Bill sets out in detail the method of ascertaining excess profit in comparison with the standard income, and after all taxes are deducted the residue is to be divided with the State, which will take GO per cent., leaving 40 per cent, in the hands of the taxpayer. A committee is to be appointed to deal with taxpayers’ apppeals, and the decision of this committee will be final.