SALES TAX

Hokitika Guardian, 14 February 1933, Page 3

SALES TAX

INNOCENT BREACHES OF LAW

fecPA'BLE OFFENCES ,-w .m .

WELLINGTON, February 11. Breaches of the sales tax which are rot deliberate will not be the subject of Court proceedings; Mir Coates assured the House yesterday afternoon. Mr Coates said that if the/Go vernment weie satisfied that the breaches were innocent ones no action would be taken

Referring to the fact that fines imposed under the Bill were relatively heavy in most cases, being £IOO or throe times the value of the goods, whichever was the greater, the Minister said that members would recognise that- in a statute dealing with taxation of thus kind--it was necersary that fines should the . higher than in other matters. In. the case of the safes tax and Customs taxes information to enable the correct tax to be charged was,-, generally spiking, within- tee knowledge of the taxpayer only. • Mr Coates drew attention to the fact that provisions respecting fines similar in these in the sales tax measure had been in the Customs Act for twer l y years, and the general procedure was not to take proceedings in Court, unless the' Government could not be satisfied ■ that fraud was not involved. It was. intended that a similar course should be adopted in dealing with offences respecting the sales tax. OffonCrs where -fraud- was -not involved under the .Safes Tax Act would l ; o„ dealt with, under Section 224 of. the -Cir-toms Act, 1913, which gave power to the Minister to deal with the cases' without referring them to Court. “Elio Sales Tax Act will be ore of the Customs Acts, and accordingly the ■Minister will have ample power to deal with cases.of innocent or inadvertent error,” enivtinu.d Mr Coates. “The Government fully recognises that in making out returns under the Sales Tax .Act clerical or other nrstakes are bound to arise, and I can assure the House that where the Government is satisfied that the offences are not deliberate proceedings will not be instituted.”