FARMERS’ INCOMES

Hokitika Guardian, 21 February 1930, Page 7

FARMERS’ INCOMES

TAXATION Q UESTIONED.

PILEMJEIi EXPOSES FALLACY

, • ROTORUA, Fob. 19. The following statement was issuet i by the Prime Minister to-day regardv ing iiK'ome tax on farmers:— f “My attention lias been drawn t( . the leading article in a Wellington newspaper, where it is stated that tin _ taxation legislation passed last ses [ ion uas underhand and furtive, and I that the House was “tricked” intc passing the same. The reason foi these extraordinary statements is the [ inference that it was not appreciated that farming income would be aggre- ; gated with income from other sources for the purposes of assessing income tax. Well, it is a fixed principle of taxation, and it is the general practice in New Zealand, in assessing income tax to make only one assessment, covering ail such income which is subject to taxation. This practice has been followed in dealing with tile income tax imposed on farmers. Where they have no source of income apart from the farm, the ease is straight forward, and the farmer is only required to pay tho land tax, or the income tax, whichever is the greater. Where the farmer has other income, however, the assessment is made in the whole of his income, and a deduction is made on account of the land tax. It cannot be said that the taxation legislation ' was rushed through the House, and if the provisions of the amending Act are referred to, it will be found clearly provided therein that the assessable income of any person shall ho deemed to include all farming profits cases whore the unimproved value of the farming land owned exceeded £14,000. As already stated, the law, for many years, lias provided for one assessment on a taxpayers total assessable income from all sources. It would be unfair to tho other taxpayers to assess farming income separately. Figures have l>3en quoted to show the alleged hardships imposed by the method of assess, ment, hut actual figures could he quoted from cases where considerable benefit has been obtained by taxpayers who have made losses on their fanning operations, bv reason of the fact that such losses have been allowed to be set off against the income they have derived from other sources; and a considerable reduction in tax has resulted. The business or salaried man pays income tax on the whole of his income, however derived, and, in many cases pays land tax in addition.There is certainly nothing underhand and furtive in connection with the legislation which is portion of the policy of the Government to obtain the requisite additional revenue from those who were considered best able to pay, and who have escaped their fair share of taxation for some years past.” j