TAX COMMISSION.

Hokitika Guardian, 6 May 1924, Page 1

TAX COMMISSION.

SITTING IN CHRISTCHURCH,

CHRISTCHURCH, May 5. The Taxation Commission opened its

Christchurch sitting in the Chamber of tile Provincial Council Buildings on Saturday. Air Justice Sim is chaimu n of the Commission and with him arc Messrs T. Shatter "Weston, AY. D. Hunt G. Shirtcliffe and J. Bcgg. Air D. G. Clark, Commissioner of Taxes, attended tho sitting.

Mr G. Gould, the first witness, said that he wished to give evidence as to land tax and income tax as far as it affected farmers. He thought that, if the rate was not exescsive, land tax was preferable to income tax for farmers, if only on the grounds of simplicity and cheapness of collection. In assessing farmers’ income, it was very difficult to separate living expenses and benefits derived from the farm from working expenses. He considered that if tho principle of graduate:! land tax was adhered to, some very necessary , amendments to the Act were required. Section 51, which imposed AO per cent extra" tax on unimproved land, was quite unworkable in its present form, except by disregarding it. In Canterbury there was much light land that required little more than .fencing to return its proper production. It would lie better to alter the clause to read: “Unimproved land means land which mi account of lack of improvements is not productive to its reasonable capacity, having regard to its situation and accessibility, as to which the Commissioner shall have full exercise of his discretion.”

In regard to section off. which debarred land-owners from co-operating for their mutual benefit, he considered it monstrously unfair. Its repeal would not affect the principle of the Act. There was no reason why the benefits of co-operation should be denied to land-owners and farmers, lie always bad felt that it was unfair that when a large property was divided into sections amongst several children, which were owned hv them severally, they should be debarred from working the property jointly, anil thereby economising in regard to working expenses, or even employing a common manager.

Tn regard to section 52, which made a freeholder liable to excess land tax on any property he leased, the tax should not bo imposed. If a freeholder felt that he could do more with an adjoining piece' of land than the owner of that piece could do, and if the owner of it . had the same view, the freeholder should he free to do it. In that ease the'man with the most ability and resource would make most out of the land, and that was the most important matter.

Another point lie wished to mention was payment of tax by farmers oil tho amount of their mortgages. Tt was a sore point with every farmer that he had to pay land-tax on the whole of his land when a mortgagee probably

was taking one-third or even one-liall of the income derived from it. Mortgages should he deductible f" land-tax purposes, provided that tho rale of tlm/tax was based on the full unimproved" value, but the deduction should have a limit. On a. proper)

worth £21.800, for instance, the graduated land-tax would be £175. There should he up'to that point l ull exemption for the amount of the mortgage. Beyond that, probably, tlie Commifi-f-ioner could net afford to go. I i oin that point now aids, up to £109,C09 there should be the same deduction in tax or 2d in the pound. H would mean that the large owner would have partial relief up to the amount of bis mortgage, and the small farmer would get full exemption up to the amount of his mortgage. He did not think that it would In- very expensive to the Commissioner to do that, anil he was convinced that most farmers would feel that there was equity in it.

Air Clark, in reply to Air Gould, said that- section 59, debarring landowners from co-operating, was framed to defeat actual cases of evasion of the Act when it was first enforced. Mr Gould: I.think it was framed by a. man with a bee in his bonnet. If a man takes his title to his land as lie should, you will have no difficulty in getting hold of all his landed interests and taxing him accordingly. After answering several questions by mein, ers of the Commission, Air Gould said: "I think that, the Commissioner exercises his powers with great discretion and fairness, hut a.strict reading of the Act seems to require review, if possible.” The'sitting of the Commission v.as adjourned till 10 a.m. to-day. when further evidence will be given on behalf of farmers. The Commission will continue its sitting in Christchurch to. mortow, and will leave for Auckland to-morrow evening. .