“UNJUST, INEQUITABLE"

Sun (Auckland), Volume III, Issue 776, 24 September 1929, Page 7

“UNJUST, INEQUITABLE"

SUGGESTIONS TO ENLIGHTEN LAND TAX BURDEN SOUTHERN LANDOWNERS MEET (Special to THE CHRISTCHURCH, Monday. At the request of the North Canterbury land-owners, a largely attended meeting was held this afternoon under the auspices of the Canterbury Chamber of Commerce to decide how best to offer criticism to the Land and Income-Tax Amendment Bill. Several suggestions for lightening the burden of the Government’s proposed land taxation were approved for submission to the Prime Minister, Sir Joseph AVard.

“I ask you if that is fair,” said Mr. Norton Francis, president, when explaining that the new land-tax, in many cases, would be up to 20 times the assessment under ordinary incometax. Tlie proposals must result in disturbed economic conditions, bringing increased unemployment, and farmers’ finance would again be difficult, as mortgagees would become nervous about their security. GRADUATED TAX

Continuing, Mr. Francis said that the council of the chamber considered that there were other means of forcing subdivision of the large estates if the Government did want to do this. It was felt that the graduated land-tax was the, fairest way. The farmers should pay their fair share of taxation, but it was against a payment out of all proportion to tbeir earnings. Some of the men on the land had made no money at all in recent years, yet under the Bill they were being asked £SOO a year iu taxation. “If that is not the capital levy, I do not know' what it is,” said Mr. Francis. “All our time should be devoted to a consideration of bow the Bill must be altered so that hardship to individuals will be avoided.”

According to Mr. W. Machin, chairman of the Economics Committee, the proposals of the legislation were thoroughly unjust and inequitable. The Government had announced that those land-taxes w’ere not an alternative to income-tax, but -were solely for the purpose of promoting 'subdivision. The Prime Minister had stated that the super-tax commencing at £14,000 was doubled at £30,000.

“Why should the Government stop at double the amount if the offence was such a heinous one, and why then should the Government stop as the offence was increased according to the size of the holding?” asked Mr. Machin. It had to be remembered that all increases were to be made this year. Some farmers had already made their subdivisions, yet would be mulcted on super-tas. “This meeting is not asking for mercy, but justice,” said Mr. Machin.

Mr. Machin then moved that this meeting consider:

(1) That in many cases the burden of land-tax and special-tax as proposed by the Government is so inequitably large that similar provisions to those of sections 30 and 31 of the Hand and Income Assessment Act, IS9I, should bo re-enacted.

(2) That relief in taxation should be granted to those taxpayers who ow'n land which, in the opinion of a properly constituted tribunal, after . hearing evidence, is unsuitable for subdivision. (3) That in order to give landowners the opportunity of acceding to th° wishes of the Government in subdividing and selling portions of their holdings the penalty of special tax shall not take effect until March 31, 1901. (4) That the Government be requested to grant full exemption for mortgages in respect of ordinary landtax to those land-owners owning land the unimproved value of which does not exceed £15,000 and to grant full exemption for mortgages in so far as the' special tax is concerned, as it is considered that while it is right and proper that farmers should be taxed on an income basis it is inequitable that they should be taxed on borrowed ntox-t----gage money.

(5) That the commission set up to inquire into and report on eases of hardship under section 3 of the Hand and Incotpe-Tax Amendment Bill, 1929, should be the Assessment Court constituted under the Valuation of Land Act, 1923.

(6) That in considering any taxpayer’s appeal under the hardship clause the earning capacity of the property and other relevant circumstances shall be taken into consideration as well as the taxpayer’s financial position and the Commissioner of Taxes shall be bound by the finding of the commission.

(7) That in order to secure uniformity in valuations of pastoral lands throughout New Zealand it be a recommendation to the Government that the Valuation Office be requested to determine tlielr values of lands according to situation and stock-carrying capacity as the basis of the present system results in serious inequality. (S) That the Prime Minister be re-

spectfully requested to approve the above recommendations and to have the necessary amendments to the Land and Income-Tax Amendment Bill drafted to give effect to them.

The motion was carried unaniand Mr. Norton Francis and Mr. H. S. S. Kyle, M.P.. were appointed to present the resolutions to the Prime Minister.