LAND AND INCOME TAX AMENDMENTS

Hokitika Guardian, 6 October 1920, Page 3

LAND AND INCOME TAX AMENDMENTS

(Our Parliamentary Correspondent.) WELLINGTON, Oct. 6. The Amendments, proposed by Government in tlie Land and Income Tax BillVere introduced last night. They included the following new clauses relating to debentures. (1) —Every local or public authority which has, whether before or after the commencement of this Act, issued debentures to persons resident in New Zealand shall for the purpose of the principal be agent of all debenture holders, whether absentees or not, in respect of all income derived by them from debentures ,nnd shall make returns and be assessable and liable- for income tax on that income accordingly. (2) —lf the Commissioner is satisfied with respect to the holder of any debenture, or debentures, issues by any local or public authority, or by any company that the aggregate amount of income tax paid or payable by or on behalf of debenture holders (including the tax paid in respect of interest on debentures) exceeds the amount of tax that would have been payable by him if interest received by him on those debentures had formed 'part of his taxable income, the Commissioner shall on application by the taxpayer pay to him the amount of excess. Mr Massey moved the second reading of the Bill and explained its clauses at length. The land tax, lie said, was to start at a penny and one-third instead of a- penny half-penny, so that some sli.rht relief would he- given to the small man. Two of the most important proposals in the Bill would be found m the schedules. One was the lowering of the unimproved value on which the maximum land tax would he payable from £194,000 to £137,000. The change was really not- made for the purpose of increasing the revenue. He recognised that it would not have the effect of increasing the revenue since men were not going to pay this greatly inci eased, tax simply for the purpose of holding land that would no longer be held profitably. Tlie lowering of the limit was being done with the object of forcing into the market land that ought to have been placed in the market before today. Mr Massey said that on August 31st last the Dominions war debt, including soldiers’ settlements amounted to £97,384,900. The sinking funds reduced the debt to £95,764,890. Against this sum there were tlie following assets:— Repatriation advances outstanding, £948,404; cash £279,162; Discharged soldiers’ advances, £8,930,035; Imprest Advances outstanding, £4,460,000; Investments, £4,172,000; making'a total of £18,793,000. He hoped to be able to, use this money consisting chiefly of accumulated surpluses ,to reduce the war debt, provided the expenditure was. kept within reasonable limits. There was no certainty a/bout that because demands were being made every day which he tried to resist. It was a most difficult thing to keep the expenditure down under the present circumstances. There were local bodies in different parts of New Zealand that it was absolutely neeesary for Government to help. The Government had to find monev for them or else these local bodies, although perfectly sound, would find themselves in very serious dimcu - ties. Mr Massey stated be anticipated, boimr able at the end of the present financial year to make up the amount of accumulated funds to £2^ 00 ?’ When this had been done and the financial adjustments made, some reduction in taxation would be possible. The Bill was read a second time.