THE FINANCE BILL.

Stratford Evening Post, Volume XXX, Issue 76, 3 July 1916, Page 6

THE FINANCE BILL.

THE MINISTER'S PROPOSALS. By the courtesy of the Finance Minister (Sir Joseph Ward, Part. Jv.CM.G.,) we are enabled to publish, the following synopsis of the Finance Bill- this afternoon: — The Finance Bill to be introduced ■in the House of Representatives this evening deals with the ordinary income ,tax levy in every year, and is, in fact, the annual taxing Bill with tho addition that provision is made for a five per cent, tax in respect of all asscssible incomes of £3OO. The Bill deals with the assessment of excess profits duty (at the rate of 45 per cent, of the excess profits). Provision is made for the.method of ascertaining .the excess profits, this is ,hy comparison with what is known f>s the standard income, which is either the average income of the three years up to March 31, 191.4, or the average of any two of them, or the income of any* one of ihem. Failing any of these three methods, ' the excess profits are to be ascertained >■ by taking the excess of the taxpayers'

income for the year ended March 31, 1916, over six per cent, of the capital invested in the business, with a remuneration for his personal exertion. not exceeding £-300. j Provision is made for the method of j ascertaining capital, and lor adjustraenls.to meet fluctuation in the capital of the business. j

Special provision is made for cases where taxpayers are occupying land for which they pay rent in the production of their income, and where there are anomalies arising out of the valuation-of the leasehold, interest, or the amount of rent paid.

Special provision is made for consideration of losses during the three years, prior to the year in which the income assessed is earned. Provision is also made restricting the writing down of stock in trade beyond the average writing down ot the years prior to March 31, 1914. A special method ■of assessing the income of banks is provided. Any increase in the rate of interest or any increase in rent over and above such amount as would secure .the taxpayer a return of six per cent, on any adtional capital expended on his property would be treated as excess profits.' Provision is made that where the payment of the excess profits duty in one sum would cause hardship, an extension of the time for payment may be given, but the Commissioner is to make a report to Parliament of his action in any case in which he extends the time for payment, with his reasons for doing so. without disclosing the name of the taxpayer.

Salaries and wages are excluded from the assessment of excess profits' duty.'

The Bill gives the Minister of Finance authority for raising a £12,000,000 loan. This money, or any portion of it, may be raised on the security of Treasury Bills, or may be raised by the Minister of Finance by agreement with the Treasury of the Imperial Government without formal security, or on such' security as may be agreed on. All monies raised under this section are to be placed to the credit of the War Expenses Account, established under the Public Revenues Amendment Act of 1914.' The limit fixed by tlje Public Revenues Act of 1910, as to the total amount that may be outstanding at any time 'in respect of ; - Ti-easury Bills, shall rfbVJapJily ft) /Treasury Bills issued for war purposes. ... Power is given for the reneAVal of Bills frtfhi- time' 'to time by endorsement by ./the ' Minister 5 of Finance .or the High Commissioner. A clause is inserted to enable the Minister of Finance to raise money or renew loans at rates of interest in excess .of those stipulated in the authorising Act. This is made retrospective, the reason being that owing to the conversion proposals brought down from time to time by the Imperial Government, the Minister is never quitecertain as H'q> the rate of interest which New Zealand is actually paying for money which lias been borrowed. .The. rates may, at any time, may ; exceed the limits provided in we authorising Act. | 'vflr'if i! •;■■'.' ■The Bill deals with banking and •■loans. It is provided that notwithstanding anything in the Banking Act of in the charter of jauybank carrying on business in the 'Goy-;ernor-in-Council may from time" to time make certain, regulations, including the suspension, alteration, or variation of the terms, conditions, or restrictions relating to the issue of notes, by any bank, and the making of •such notes legal tender in New Zealand. ' Regulations may also be made for altering the amount of the reserve Off: coin, bullion, and public securities provided to be held in New Zealand by any bank against the debts, engagements, and liabilities of such bank, and for providing that bank notes of the denomination of 10s may be lawfully issued in New Zealand. In this part of the Bill, the Gover-nor-in-Council is given po.ver to make regulations regulating the rates of interest that may be paid on moneys invested in New Zealand by way of fixed deposit or by mortgage. The Minister of Finance is empowered to raise £1,000,000 bearing interest at a rate not exceeding four aiid a-hal£ per cent., such money to be paid into -the; Public Account to the credit of the Public Works Fund, and to be used for public works.

The Bill provides that no stamp duty shall be payable, on, any power .of attorney executed by any person who is a member of the Expeditionary Force.

The Bill deals with the Public Trust Office. It is provided that where the estate of a deceased member of the Expeditionary Force under administration by the. Public Trustee is of less value than £IOO, it may be distributed or conveyed and dealt with without the prescribed notices being given as laid down in the Public Trust Act.

Provision is also made that where! ihe net profits of the Public Trust Office in any year exceed the sum of £20,000, the Governor-in-Council may direct that such profits or any part of them be credited pro rata as a bonus to each estate or account in the. office.