TAXES ON PARK

Sun (Auckland), Volume III, Issue 816, 9 November 1929, Page 10

TAXES ON PARK

POSITION OF CORNWALL TRUSTEES PAYMENT OF ARREARS AVOIDED Though the Cornwall Park trustees under the new clause in the Finance Act are required to pay half the ordinary land-tax on their trust property they _ have been exempted from a claim for five years’ arrears in taxes amounting to over £20,000. Since the foundation of the trust the trustees have been exempt from taxation on the property, but from now on they will be obliged to pay an annual sum amounting to over £2,000. The tax this year is £2,270. which reduces the annual revenue of the trustees, about £9,000, to something less than £7,000. The clause exempts the trustees, retrospectively and for the futui’e, from income-tax in respect of income derived from the trust property. There is also retrospective exemption from land-tax in respect of the land comprised in the trust, but for the current assessment year and in future the trustees are required to pay land-tax. The amount, however, is to be one-half of that for which they would ordinarily be assessed.

This morning Mr. A. S. Bankart, chairman of the trust board, told the Sun that notices of assessment for land-tax for the current year and for five years previously were served on September 13. In addition they were assessed with £l3B income tax and £4,539 land-tax for the current year, a total of £20.144. An objection lodged shortly after was disallowed. Mr. Bankart interviewed the Prime Minister, who asked for .a written statement of the position. Later the question was taken up by the Attor-ney-General. the Hon. T. Iv. Sidey.

Early in November Mr. Bankart conferred with the Minister, the ValuerGeneral, and the Commissioner of Taxes. Valuations were discussed, but it became evident that, in the time availably, there was no hope of .securing complete exemption. an agreement was reached, this being represented by the clause now passed by Parliament.

Mr 1 . Bankart held himself free to reopen the question and said he would consider nothing less than total exemption from land and income taxation to be equitable in the public interest. ■“As the law stands they have not been unsympathetic,” added Mr. Bankart. “We hope to arrange for a revaluation of those portions of the endowment land which have not yet been subdivided and roaded for leasing, and which were in the same state as the undeveloped park area. If this could be done a considerable saving should be effected and the trustees will have more income left for developing the park in terms of the trust.