COMPULSORY LOANS.

Manawatu Herald, Volume XL, Issue 1816, 20 April 1918, Page 1

COMPULSORY LOANS.

SIR JOSEPH WARD EXPLAINS. Persons who are in doubt about their obligations to the State for ■War purposes under the compulsion clause of the Finance Act have today a comprehensive explanation by Sir Joseph Ward. Interviewed on this subject, the Finance Minister made the following statement; — “As doubts appear to exist in the minds of many people regarding their obligation to subscribe to tho War Loan under the compulsory clauses of the Finance Act, it may be well to explain clearly how it is proposed to administer these clauses. “Section 40 of the Finance Act, 1917, which provided compulsory clauses under that Act, has been repealed, and the only compulsory clauses which are now operative are those contained in the Finance Act of 1918. Under these latter clauses the Commissioner of Taxes is empowered —after comparing the amount of land and income tax paid by any individual with the amount of subscription to the War Loan of (hat individual —to serve a notice on the taxpayer claiming an additional sum by way of subscription to the loan. Provision is made for the setting up of an Appeal Board to deal with any objections to the amount assessed by the Commissioner of Taxes, and a further appeal to a Judge of the Supreme Court is also provided by the Act. NOT A RIGID MANDATE. “Every person is liable to be called upon to contribute to the extent of six times the average annual amount of the land and income tax assessed to him for the years 1915-10, 1910-17, 1917-18. This docs not, mean that the Commissioner of Taxes is compelled to claim six times the amount of such taxation, but this provision is merely inserted in the Act to provide a maximum amount beyond which the Commissioner of Taxes cannot go, “The Act also provides that the subscriptions to the loan under those compulsory clauses will bear interest of 3 per cent, only, but 1 wish it to he thoroughly under-stood that time will be given to enable persons to discuss their position Villi the Commissioner of Taxes before the penal clauses are put into operation. APPEAL BOARD’S DISCRETION. “Considerable discretionary powers are given to the Appeal Board, who, in dealing with any appeal, will take into consideration the fact that an appellant had subscribed liberally to previous loans, or that he had business losses, or that his circumstances were otherwise such as would justify him in claiming partial, or whole, exemption from the provisions of the Act. “The object of the compulsory clauses is not so much to compel the willing contributor to subscribe more than he has done, as it is to compel the shirker to shoulder his fair share of the financial burdens of the country.” In concluding bis remarks, Bir Joseph Ward said he felt it bis duty to state (hat he had given instructions for the compulsory clauses to be put into operation, as he found it necessary that this should he done. He would make a general statement about the present loan and give information concerning the £20,000,000 Loan in the course of a, day or so.