INCOME TAX.

Otago Witness, Issue 2894, 1 September 1909, Page 12

INCOME TAX.

ALLOWANCE FOR DEPRECIATION. Mr William Soofct, seoretary of the Otago Employers' Association, kaa forwarded to 'us for publication the enclosed letter, which should prove of interest to business I men generally : — Land and Inoome Tax Department. Wellington, August 15, 1909. The Secretary New Zealand Employers' ] Federation, Wellington. ' Dear Sir, — I have to advise you that I have given careful consideration to the ' representations laid before me by the New Zealand Employers' Federation on the jubject of the allowance to be made in assesst ments for income tax for depreciation of plant and machinery, and have now to I state that for the current and future years the allowance will be: — i 1. All expenditure on repairs and renewals. 2. ffive per cent, depreciation on half the total value on all plant and machinery. j 3. A deduction for the loss arising on any plant and machinery which has become I obsolete or useless, and which has been absolutely sold or discarded and throw* out. [ Note. — The allowance cannot be made ■ when the depreciation is not written off or is carried to reserve fund under the special provisions of section 86 of "The Land andf Income Assessment Act, 1906." It c&nf only be allowed where depreciation ha* been actually written .-off the assets.— l havo,etc, P. Hires, Commissioner of Taxes* "COAGULINE," "KLINX," "TENA> SITINE." Cements for breakages, maau* facturing purposes, eto.