Manawatu Herald SATURDAY, AUGUST 11, 1917. AVAR LOAN AND TAXES.

Manawatu Herald, Volume XXXIX, Issue 1746, 11 August 1917, Page 2

Manawatu Herald SATURDAY, AUGUST 11, 1917. AVAR LOAN AND TAXES.

CERTAIN points relating to the war loan and the new taxation proposals have been considered capable of more than one interpretation. The Christchurch Press submitted some of these points to Sir Joseph Ward for a decisive settlement, and Sir Joseph telegraphed brief but clear explanations of what is proposed. The points upon which information was sought were. —(1) Whether the war loan is to be free of income tax and of Hie war tax, or free of income tax only but subject to war tax. ’ (2) Whether the progressive land tax (ranging from 1-L.l to lOAd) applied to mortgages, being a levy on the unimproved value of mortgaged laud. (3) AVlicther, for example, a company with huge investments on mortgage (say £290,000) would have to pay 10Ad in the pound on the unimproved value. (4) Whether die 5 per cent, cxenqdion on the unimproved value of land used in producing income would cease when die income produced reached'£ooo. (This appeared to be a possible interpret at ion of the paragraphs in the Budget under the heading “Progressive Income Tax”). Sir Joseph AATird’s reply to the points enumerated is as follows: — “(1) War loan is exempt from all income-tax, including war tax. (2) Progressive hind tax will not apply to mortgages, as interest from mortgages is assessible for in-come-tax. Progressive land tax will be levied on unimproved value, of land only. (3) A company holding £200,000 mortgages will not be charged land tax on the mortgages, but will be liable to income tax on the interest. (4) The 5 per cent, deduction is from unimproved value of land, which is used for producing income; and is distinct from the £3OO exemption, which latter disappears at £900.”