INCOME TAX.

Gisborne Times, Volume XXV, Issue 2046, 5 April 1907, Page 2

INCOME TAX.

THE COAIAIISSIONER STATES HIS CASE. Press Association. WELLINGTON, last night. A ladies’ committee was formed in AVellington to-day to assist in the collection of funds for the Seddon memorial. The memorial 'committee to-day accepted an oiler by the Besses o’ til’ Barn Band to give three concerts on April 27th and 28th, in aid of the funds. Interviewed by a Times reporter to-day with reference to the Christchurch exhibitors’ objection to pay income tax on the profits made, Mr. P. Hayes, Commissioner of Taxes, explained that the law provided that every person who started business in the State must pay a deposit to tho Customs as a guarantee that bo would make a return of the income derived from the business. There was no question in regard to the law governing the exhibitors’ liability, though the exhibitors considered that they had some special claim for privilege in this matter. He did say when the Exhibition was opened that 4lie would not claim tax upon any indenting done from samples shown at tlio Exhibition, but it was not hero where the complaint lay. It had to l>o remembered that there were many Austrians and others who •ran shops at the Exhibition, making great- profits on the sale of their goods. The income thus derived was from business done in the State, and was clearly taxable. For instance theatrical companies doing business ip New Zealand were taxed on their income, and why not “AA’ondcriaiid,” the Pike, and the other side shows at the Exhibition? There was never any difficulty with the permanent theatrical companies periodically touring this country. They all paid tax on their profits. These companies had visited New Zealand during the Exhibition, against which they had to compete, vot they had to pay the tax all the same, and the law did not make any exception. In the present instance he failed to see where tho “sharp practice” came in, as alleged by the South Australian Commissioner, seeing that Christchurch shopkeepers who paid income tax were in competition with Exhibition shopkeepers who claimed exemption, and mircover it must 1 be remembered that where a man’s business resulted in a loss, liis deposit for income tax was returned in full, and if the business showed a smaller profit than the amount of the deposit the balance was returned. No deposit or tax had been collected from sample exhibitors at Christchurch. As to the attitude of the Department in the matter, there was, added the Commissioner, no authority for waiving the collection of tho tax, which was being collected under statute law.