THE FINANCE BILL.

Hokitika Guardian, 29 August 1917, Page 1

THE FINANCE BILL.

PARTICULARS OP THE MEASURE

(Per Favour of the Government.)

WELLINGTON,, Aus '2B. •' The Finance Rill was .introduced in the. House of Rrepresentatives To-night it/ (.•barge of Sir J. Cl. Ward. It is a. measure of 7(5 clauses, and sets out the rates of Land Tax and Income Tax for the year commencing on April Ist, 19f7, a s follows: LANT) TAX. (1) Where the unimproVed value on which land .tax is payable does not exceed £I,OOO, tlie rate of. land tax shall lie Id for every pound thereof. (2) Where unimproved value on which land tax is payable exceeds £IOOO, the rate of land tax shall be Id for every £1 thereof, increased by one thirty-two thousandth part of £1 in excess of £l,000, hut so -a s not to exceed in any case the rate of 7d in the £l. (3) In addition to land tax payable as provided in clause 1 or clause 2 of this part of the .schedule • as the case be, there shall in every ease be payable by way of land tax on ai{fount equal to SO pcV centum of land tax so payable. INCOME TAX. (J) On income assessable under subsection (8) of section 112 of Land and Income Act 1010, the'rate of income tax shall be Is for every £1 thereof, t (2) On taxalile. income of companies rates of income, tax shall be as follows (a)Whore income on which tax is payable does not exceed £1,(500 the rate shall be l s for every £l'thereof.

(b) Where such income exceeds £l,'(500 the rate shall be Is for every £1 thereof, increased by one two-hundred part of Is for every pound in excess of Cl,(500, but so as not to exceed in any case the rate of 3s.‘in tlio £l. (3) On taxable income of all tax pay vi's other than those referred to in clauses (1) and (2) hereof rates of in'•oine tax shall be as follows: (a) where income <m which tax is payable does not exceed £-100, the rate shall he (5d ‘or every £1 thereof. (b) Where such income exceeds £IOO i.lie rate shall bo fid for every £1 thereof, increased by two-hundredtli part, of Is for every £1 ill excess of £4OO, but so as not to exceed in any case the rate of 3s iu £l. EXEMPTIONS. Exemption from land tax are fixed at £50.0, where the total unimproved value does not,exceed £1,500, and when the value exceeds £1,500, a reduction bf £SOO diminished at the rate' of £1 for every £2 of that excess, so ifs to leave no deduction when that value amounts to- or exceeds £2,500. Til lieu of the above, deduction' there may bo deducted as special exemption from the total unimproved value of the land of the tax-jviyer -in cases where that land or any part thereof was at noon on ,31st day-of March, preceding the year of assessment subject to mortgage the following amount.

Where the total unimproved value does not exceed £3,000, the sum of £l,500 or (b) where the total unimproved value exceeds £3,000 the sum of £1,500 diminished at a rate of £3 for every £4 of that excess, so as to leave no deduction under this paragraph when that value amounts to or exceeds £SOOO. A special clause empowers the commissioner to grant the taxpayer in the case of hardship, or where the taxpayer is a widow with dependent children. Special exemptions‘in -the Bill ' provides that half the land tax shall he oavable in respect of land held by a religious society, exclusively for religious and charitable purposes, of of land held by any Association of persons exclusively for the purposes of outdoor sports, other than horse, racing, not conducted for pecuniary gain. Clause 34 enables tjic Commissioner of Taxes to refund to shareholders of a company, if the shareholders’ total income was less than £3()Q V an amount equal to the amount of tax. paid by the company in respect of an amount of its income, equal to dividends,paid hv it to shareholders. SPECIAL WAR TAX.

(1) Where the income on which special war tax is payable does not exceed £4OO, the rate shall he fid for every £1 thereof. ' ‘ \

(2) Where income on which special war tax is payable exceeds £4OO the rate shall he fid for every £1 thereof, increased by one two-hundredth part of Id for eveVy £1 in excess of £4OO, hut so as not to exceed 3s in £l. (3) To rates prescribed by clauses (1) and (2) hereof respectively there shall be added an rate equal to 50 per centum tjioreoj', and the total shall he the rate of special war tax payable bv the tax-payer. . r j ... . ...

COMPULSORY WAR LOAN '

. The section dealing with compulsory subscriptions to war purposes loan states that it shall be the duty of every tax-payer whose taxable income, for the income year ended AJarch 31st 1917 was not less than £7OO to subscribe to tjie War Purposes Loan 1917, an amount equal to three times the total amount .of land tax, and income tax. (exclusive of excess profits duty) for which he was liable under the Finance Act 1916, provided' tlint no obligation to subscribe to that loan shall he enforceable under tins section, until a. notice undei the hand of the Commissioner of Taxeg'is served on the tax-payer. If the Commissioner of Taxes lias reason "to believe that any person has not subscribed to the War Purposes Loan 1917, to the extent to which he is hound, so to do, by this section, he may by direction of the Minister ef Finance cnll upon that person .to subscribe to that loan an amount jto he specified not exceeding in the aggregate tho amount which by this section he is obliged to subscribe. . If any person to whom a notice is sgj-ved under this section apd who has not appealed or whosp appeal has. pot been allowed,' fail# ’ to •amply with

the terms, of that notice as modified by the Commissioner on appeal, he shall be chargeable by way of penalty with an additional 'penal tax equal to double the total amount of the land and income tax (exclusive of \ excess 'profits duty) payable by the finance Act, 191(5. BEER DUTY.

The sect-ion dealing with the increas-f t'd rate of dijty onybeer, manufactured in New Zealand provides that where, the specific gravity of the worts used' in the production of the beer does notj exceed; 1017, the duty shall be at the; rate ’of iivepence and twelve-sixteenths: of a penny per gallon. Where the specific gravity of the worts exceeds. 1047, the duty, .per gallon shall be at the rate aforesaid in-: creased by one sixteenth of a penny, for every unit of specific gravity above! 1047, but as that in no case shall therate exceed sixpence per gallon. TOBACCO. ' The duty on tobacco manufactured; in New Zealand is fixed as follows: On cigars *and snuff 4s per lb., on cigarettes, manufactured by machinery j 3s" fiddicr pound, on cigarettes if made' by hand A per lb. , j If the manufacture of cigars and snuff j containing less than 65 per cent, of to-f baeeo grown in New Zealand is in theopinion of the Minister of Customs at' any time detrimental to the public revenues, the Governor-General may fix] the maximum quantity of such cigars! and snuff . that may lie made in any! year by any. manufacturer at the aforesaid rate of 4s per lb. and fnay pre-. scribe a rate of duty not exceeding (is (id per lb. upon all cigars and snuff made by or on behalf of that manufacturer in excess of such maximum quantity. | BANKING AND LOANS.

Banks carrying on business in New) Zealand may be authorised to hold as part reserve, securities other than public : securities, in order to facilitate the investment of small sums in the loan. . The Postmaster-General may agree to issue war loan certificates on condition that 'the purchase money be paid by monthly or other instalments extending over : a period not exceeding sixteen months. Trustees are given discretionary power to borrow money upon a security of the whole or part of their trust estates for the purpose of investing their money in"-inscribed stock of the War Purposes Loan. Savings banks are'authorised to invest funds including reserve funds in thi) loan. The bill authorises the raising of £1,850,000 for public 'works including the employment of discharged soldiers. It iiiorenses to £40,000 per jinnum, the amount which may .he loaned under the Fruit Preserving Industry Act. Authority is given to borrow in additional £40,000 for purposes of Rnngitaiki Land Drainage Act. Borrowing powers under the Discharged -Soldiers Settlement Act 1915, arc extended from £IOO,OOO to £500,000. AMUSEMENT TAX.

The rates of Amusement tax are set out as follows. Payment for admission (exclusive of .amount of tax) exceeding 6d., but not exceeding 2/6, amusements tax payable Id. ' Exceeding 2/6 but not exceeding />/-, • Amusements tax payable 2d. ■Exceeding 5/-, but not exceeding 7/6 amusements tax payable 3d. Exceeding 7/6, but not exceeding 12/6, amusements tax payable 6d. Exceeding 32/6 1/- for the first 12/6, and If- for every ten shillings or part of ten shillings over 12/6. Entertainment includes any exhibition, performance, amusement, game or sport, to which persons are admitted for payment. The tax will come into force on and after Novr. Ist next. •EXEMPTIONS TO AMUSEMENTS TAX. Shall lie charged on payments'for admission to any entertainment where the commissioner is satisfied (a) That tlif whole takings thereof are devoted to philanthropic or cliari-y table purposes, without any charge or takings for any expense of the entertainment ; or, (b) That the entertainment is of a wholly educational character, and is exclusively for the benefit of, any school or other educational institution or institutions, not established for profit; Or (c) That entertainment is. intended. only for amusement of children arid that the cjiarge. is not more than one penny for each person, Or, (e) That entertainment is provided for partly educational and .partly scientific purposes (but for no other purpose, by a society, institution or committee not conducted for profit. Clause 58 provides that where the < Commissioner is satisfied that the whole net proceeds of an entertainment are devoted to philanthropic or charitable purposes and that the whole of • the expenses of the entertainment do not exceed twenty per cent of the receipts there shall be refunded to the proprietor the amount of amusement tax paid in respect of the entertainment. PENSIONS INCREASES.

The Bill provides for an increase of £l3 per annum in old age, widows, military (other than present war) and miners pvthisis pensions and £6 per annum in respect of each child of a widow receiving pension. This section is deemed to have been porative from September Ist. 1917 end shall continue in force during the present way with Germany, and for twelve months there after, and no longer. BEER, DUTIES. The Bill imposes restrictions on the hours during which brewers may sell or del'ver beer. It will be unlawful to sell or deliver on Xmas Day, Good Friday Sunday or any other day when it

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is unlawful to sell intoxicants in any licensed premises,- while, except by permission in writing of the Collector of Customs, beer may not be delivered on any day except between'seven a.m. and six p.rn., '

Power is given the Minister .of Customs to cancel or suspend .brewers license' if the holders is not a person of good reputation. in part four relating to banking and loans, power is given to continue and extend the privileges' of not issue, until five years after the termination of the present war.