AMENDMENTS TO TAX BILL

Hokitika Guardian, 24 October 1929, Page 5

AMENDMENTS TO TAX BILL

‘ HARDSHIP PROVISIONS i • EXTENDED. , ~ ! ' DEVELOPING ‘ LAND j j . EXEMPTED. | WELLINGTON, October 22. At an early stage of the House of l i?fep^§enta.ti , '(fces 'sli&ti!fig'to-day, a serS<|.s -of further amendments .to the Land and Income 1 .Tax Act Amend■ijl'ere jpfroduced by GovernpitrGenefars "message. Reform speakers .cLstnissed various aspects of the proposed new taxation at such length. .on the preliminary stages that it was«, some/hours before .the actual amendments wore available to members. However,/ there was'a preliminary explanation by the Eton. G. W. Forbes, Minister of AgricU|ture, who, in; the absence of the Prime Minister, : ?bf ,ihe. Bill. ’Clltuse 3f-bnpWn as the hardship clause, is amended by eliminating the phirase, “by reason of the financial j.l.isition / of' the ‘ taxpayer,” so that it 'enables ca|es vto I)e dealt with by the special Commission of Inquiry in. 1 which payment of special land tax has entailed or would entail serious hardship to the ■ taxpayer. This clause is extended by adding the follojng, “In' / considering any alleged case of hardship the Commission shall have regard only to the financial position of the taxpayer, and in the case of lands' which, though capable of being , used for agricultural or pastoral purposes, are not in fact so used, to the practicability of such lahus being profitably used for agricultural or' pastoral' .purposes. ’ V f DVTjRDRMT ■ mortgages. The mortgage exemption .clause has been .amended to cover, the position of a landowner who does not ;carry an ordinary mortgage,; but is financed bv a bank or’ other institution on overdraft. This mi|lit be Variable during the course of - the year, and there is provision for averaging the amount toLbp. regarded, as mortgage for the purposes of 1 exemption. There is also / provision that where a mortgage has befen transferred with a property and .may be current in respect of the taxpayer for; onlyT a* broken -portion of the year to recognise that proportion -• in' assessing ’ exemption. / : . proviso to Clause 11, which defines the extent to which a landowner’s income derived from land use is assessable, has been, deleted. This provision struck out reads: “Provededi that the income,|tax payable in any year in respect to which this paragraph relates shall not .exceed the difference.between the sum of £14,000 and' the total' unimproved value .of the lands from which such - income was derived.” ' MINISTERIAL EXPLANATIONS. :i; During the -course of the discussion the Hon g! W,/ Forbes; answered. mAny . questions . regarding' the moaning and operiitiqp of the measure as proposed to 'be amended- He stated . that the addition to Clause; 8 would allow of lends which #ere,’ portions of a large estate, but were .undeveloped though in process, of improvement, to. be taken into consideration by the Commission under the hardship clause if these areas were not returning a f . profit. Arl*ther variation of the hardship clause would meet the objection- that the taxpayer must snow that the increased taxation would e impossible of payment. He was required ’instead to show; that increased payment would be a hardsmp. Im oonsideriug the practicability o turning the land to account for agricultural or pastoral purposes the commission would be able to consider 1 whether its nature or geographical position would make such use economically impracticable. This, he suggested. would meet some objections raised in regard to land which was too inaccessible for subdivision.. Mr Coates, leader of the Opposition: Would that give power to exempt, such land from super-tax? The Minister: Jf ’it is deemed suitable for closer settlement. they would take into consideration a number of points, and-this amendment : widens their order of reference. Mr Forbes also jx\nted out that the amendment would considerably help!the man; who was breaking m considerable areas,' as they would be exempt from 1 super-tax . while unpi o--1 ductive. - ! ■■" '■ . '