THE POOLING OF SALARIES

Otago Daily Times, Issue 24422, 7 October 1940, Page 11

THE POOLING OF SALARIES

TO THE EDITOR

Sir—Do Ministers still pool their pay with Labour members of Parliament, as they undertook to do when fresh oil the grass in 1935? It must have been an embarrassing little problem lor the Commissioner of Taxes. If he approved of the arrangement he would lose income tax, and contributions to the impending compulsory loan would also be lost . So' little has been heard of the proposal since 1935 that it must have fallen into what somebody described recently as “innocuous desuetude.” Anyway, it seemed more suitable for a monastery or something like that, too good for this world, and practical politicians are very much of this world.—l am. etc., M - October 4.

[From a statement made in Parliament last week it is evident that the pooling arrangement is still in force. The inclusion in a recent Finance Bill of a provision that contributions by Ministers to a salary pool are to be deductible for income tax purposes led to a question by Mr Goosman whether it was the Government’s intention to apply the same principle of exemption to the ordinary taxpayer. Mr Nash replied that the legislative provision referred to was for the purpose cf obviating double taxation on that part of the statutory salaries of Ministers which under the pool arrangement, was diverted to other members of the House. Now. he said, every Minister and every member concerned paid income tax in full on what he actually received. —Ed. O.D.T.]