TAXATION BILL.

Hokitika Guardian, 25 September 1924, Page 1

TAXATION BILL.

INCHEASED MORTGAGE exemption. AYE.LLIXGTOX. Sept. 23. An amendment of the Land and Income Tax Bill "as intinduced by Gov-ernor-General's message to-day, and "as explained by the Prime Alinisler lie said that the Bill "as principally of a machinery eharaoter, hut there were two or three important clauses. One dealt with the change recommended by the Public Accounts Committee in the annual Taxing Bill reducing the land tax deduction to A per cent. AA'ith this ho thoroughly agreed. It was accompanied by a proposal that what ’poo] h? "ere in the habit ol culling land tax on mortgages would he varied. The present exempt inn in respect of mortgages was up to £dO*J>h gradually tapering olf to L'SOOO- 'lhe alteration prvided ill the Bill would make the minimum exemption £IO.OOO and allc'v it to taper off at Cl A ,000. There were certain safeguards, but this clause would he of tremendous benefit to the ordinary working fa’ mer who was working under a mortgage and who felt the injustice of being taxed on money lie owed.

PASTORAL LESSEES’ TAXATION. Another provision, said the Prime Minister, related lo income tax on pastoral leases anil small grazing runs, whieh had heen introduced last session. It was not agreed to at the time, and he fell that a mistake was made, though not intentionally. TL was proposed to restore income tax ou this class of land-owner, placing him in the same position as prior to the war. These lands paid little or no land tax as the interest of the tenant was small. Another clause "hieh had heen asked for would provide that when there "ere arrears of land tax in respect of property which was sold, the arrears would he charged on the land, but the purchaser would have to he notified of the position. Air Si,ley asked "lien the annual Taxing Bill would be considered. Air Alassey replied that he could give an answer to-morm"’. In addition to the nmnedmenls ex--1 laiiied by the Prime Alinisler. the Bill contains a clause which makes a lessee of Native land liable on behalf ol the Native (t'vuepfer land tax. Another provision "ill enact that any increase in the valuation on the reconstruction of a company will he regarded as included in profits. AVhoro a lump sum is paid by a firm to an employee as bonus or pension on retirement, only A per cent of that sum is to lie regarded as income for luxation purposes. \nv pension grunted in Great Britain or the British dominions in respect to the Euroi'ean war is to he included in tile list of incomes wholly exempt from taxation.