PARLIAMENT.

Taihape Daily Times, Issue 220, 29 August 1917, Page 5

PARLIAMENT.

THE FINANCE BILL

OUTLINE OF ITS PROVISIONS. WELLINGTON, this day. The Finance Bill introduced in the House of Representatives 3Est night in of Sir Joseph Ward is a measure ,of 76 clauses. It sets out Tates of land tax and income tax for the year commencing on Ist April, 1917, as follows: Land tax (1) where unimproved value on which land tax is payable does not exceed £IOOO, the rate of land tax shall be Id for every £1 thereof; (2) where the unimproved value on which land tax is payable exceeds £IOOO, rate of land tax shall be Id for every £1 thereof, *• increased by one-thirtytwo thousandth part of a Id for every £1 in excess of £IOOO, but so as not to exceed in any case a rate of 7d in the £1; (3) in addition to land tax payable ag provided in clause 1 or clause 2 of this part of this schedule, as the case may be, there shall in every case be payable by way of land tax a discount equal to £SO per centum of land tax so payable as income tax on income assessable under subsection 3 of section 112 of the land and income tax act, 1916, rate of income tax%Aall be l s Tor every £1 thereof; (2. on taxable income of companies. Rates of income tax shall be as follows: (a) Where income on which tax is payable does not exceed £I6OO the rate shall be Is for every £1 thereof; (b) where such income exceeds £I6OO The rate shall be Is for every £1 thereof, increased by one two-hundredth part of a Id for every £1 in excess of £1600; but so as not to exceed in any case the rate of 3s in the £1; (3) on taxable income of all taxpayers other than those referred to in clauses 1 and 2 hereof, rates of income tax shall be as follows; (a) Where income on which tax is payable does not exceed £4OO, the rate shall b e6d for every £1 thereof; (b) where such income exceeds £4OO the rate shall be 6d for every £1 thereof, increased by two-hundredths part of a penny for every £1 in excess of £400; but so as not to exceed in any case a rate of 3s in the £l. Exemptions from Land Tax are fixed at £SOO, where the total numproved value does not exceed £ISOO, and* when the value exceeds fifteen hunderd a deduction of five hundred pounds, diminished at the rate of one pound for every two pounds of that excess, so as to leave no deduction wlid™. that value amounts t'o dr exceed £2500. In lieu of the above deduction there may be deducted as special exemption form the total unimproved 'value of the land of the taxpayer' in cases where That land or any part thereof was at noon on the thirtyfirst day of March of the preceding year of assesment, subject to mortgage to the extent of the following amount: (a) where the total unimproved value does not exceed three thousand the sum of one thousand five hundred pounds; or (b) where the total unimproved values exceed three thousand pounds, the sum of one thousand five hundred pounds, diminished at the rate of three pounds for every four pounds of that excess, so as to leave no deduction under this paragraph when that value amounts to or exceeds five thousand pounds. Special clauses empower the Commissioner to grant exemptions in case of hardship, or where the taxpayer is a widow with dependent children. The special exemptions of the bill provides that half the Land Tax shall be payable in respect of land held by religious societies exclusively for religious or charitable purposes, dr of land held by any-jjassociation of persons exclus ively for purposes of outdoor sports (.other than horse racing) not conducted for pecuniary gain. Clause 34 enables the Commissioner of Taxes to refund to a shareholder of a company, if the shareholders total income was les than £3OO, an

amount equal to the amount of tax paid by it to the shareholder. Special War Tax —The rate where

* the income on which special war tax is payable does not exceed £4OO, the rate shall be 6d for every £1 thereof, increased by one twohundredth part of a penny for every £1 in excess of £400; but so as not to exceed 3s in £1; ,(3) To rates prescribed by clauses 1 and 2 hereof respectively, there shall be added an aditional rate equal to 50 per cent thereof, and the total shall be the tp*-' of the special war taxpayer. Loan Fubscrintions The section, dealing with compulsory subscriptions to the War Purposes Xoan, states that it shall be the duty of every taxpayer, whose taxable inC n -• for the income year ended March 31st, 1917, was not less than '£7oo, to subscribe to the War Purposes Loan, 1917, an amount equal to three times the total amount of land tax-ifct‘ income tax (exclusive of excess/profits duty) for which he was liable under the Finance Act, 1916. Prrfvided that no obligation to subscribe to that loan shall be enforcahle

under this section until a nctice under the hand of the Commissioner of Taxes be served on the taxpayer. If any taxpayer to whom this section relates has subscribed to the loan au-

thorised to be raised by section 35 of the Finance Act, 1916, an amount exceeding one and a half times the • amount of tax for which he was liable as aforesaid, the amount so contributed by him in excess shall be deI ducted from the amount which he is obliged, under this section, to sub- ; scribe to the War Purposes Loan, and hi s obligation to subscribe to that loan shall be modified accordingly. If any taxpayer to whom this section relates has not subscribed any amount to the 1916 loan, the amount which he is obliged to/subscribe t© the War Purposes Loan, 1917, snail be increased by an amount equal to one and a half times the amount of land tax and income tax (exclusive of exces s profits duty) for which he was liable under the Finance Act, 1916. If any taxpayer to whom this section relates has subscribe!! to the 1916 loan. An amount less than one and a half times the amount of land tax and income tax (exclusive of excess profits duty) for which he was liable under the Finance Act 1916, the am--7 ount of which he is obliged to subscribe- to the War Purposes Loan,. 1917, shall be increased by an am- / ount equal to the difference between the amount so subscribed by him and one and a h|lf times the amount of tax aforesaid.' If the Commissioner of Taxes has reason to believe that any person has not subscribed to the War Purpose Loan, 1917, to the extent to which he is bound so to do by this section, he may by direction of the Minister of Finance call upon that person to subscribe to that loan an amount to be specified not exceeding in the aggregate the amount which by thig section he is obliged to subscribe. Any person upon whom a notice under this 'section is served, may, within 14 days ? appeal to the Commissioner of Taxes, and may, on appeal, produce evidence to show cause why he should not be bound to comply with the terms of the notice. If on the hearing of an appeal under this section it is proved that the appellants has subscribed to any war fund or other patriotic fund in connection with the war, the Commissioner shall deduct the total amount of such subscriptions from the amount which the appellant is obliged to subscribe to the War Purposes Loan. The Commissioner may, on any appeal, exempt the appellant either wholly or in part from his obligation to subscribe to the loan- or > may allow time for the payment ,of the whole or any portion of the amount deemed, or, he may dismiss the appeal. For the purposes of an appeal the Commissioner may have associated with him the secretary to the Treasury and the Government Insurance Commissioner, but the determination of every such appeal shall be the Commissioner of Taxes. If any person on whom a notice i s served under this section, and who has not appealed, or whose appeal has not been allowed, fails to comply with the terms of that notice, or with the , term s of that notice as modified by the Commissioner oh'appeal he shall be chargeable by way of penalty with an additional penal tax equal to double the total amount of the land tax and income tax (exclusive of excess profits duty) payable by him under the Finance Act, 1916. The Gov-ernor-General may, by order in Council, make such regulations as may be deemed necesssary for the purpose of giving effect to the provisions of this section. BEER DUTY. The section dealing with the increased rate of duty on beer manufactured in New eaiand, provides that where the specific gravity of the worts used in theT production of the beer does not exceed 1047, the duty shall be at the rate of fivepence and twelve-sixteenths of a penny per gallon. Where the specific gravity of the worts exceeds- 1047, the duty per gallon shall be at the rate aforesaid, increased by one-sixteenth of a penny for every unit of specific gravity above 1047 ; but so that in no case shall the rate exceed sixpence per gallon. The Beer Duties Bill imposes restrictions on hours during which brewers may sell or deliver beer. It will be unlawful to seU or deliver on Christmas Day, Good Friday, Sunday, or any other day when it is unlawful to selJ intoxicants on any licensed premises; while, except by permission of the Collector of Customs, beer may not be delivered on any day except between 7 a.m. and 6 p.m. Power is given ho the Minister of Customs to cancel or suspend brewers’ Hinnies if the holder Is not a person of good reputation. The duty on tobacco manufactured an New Zealand is fixed as follows; On cigars and snuff four shillings the pound; on cigarettes, if manufactured by machinery, three shillings and sixpence per pound; cigarettes, if made by hand, two shillings the pound. If the manufaetur-

er of cigars and snuff containing less than 75 per cent of tobacco grown in New Zealand is in the opinion of the Minister of Customs at any time unduly detrimental to the public revenues, the Governor-General may fix the premium on any quantity of such cigars and snuff that may be made in any year by any manufacturer at the aforesaid rate of four shillings the pound, and may prescribe a rate I of duty not exceeding 6s 6d upon all cigars and snuff made by or on behalf of that manufacturer in excess of such maximum quantity. BANKING AND LOANS. Banks carrying on business in Now Zealand may be authorised to hold, as part reserve, securities, other chr.n public securities. In order to Lacilitito the investment x qf small sums in the loan the Postmaster-General may agree to issue War Loan Certificates on condition that the purchase moi :y bo paid by monthly or other insm’ments extending over a period not exceed mg 16 months. Trustees are given discretionary power to borrow mo ro/ upon security of the whole or part of their trust estates for the-purpose of investing their money in Inscribed Stock in the War Purposes Loan. Savings banks aro authorised to invest funds, including reserve funds in the loan. Th e Bill authorises the raising of £1,850,000 for public works, including the employment of discharged soldiers. It has increased to £40,000 per annum the amount which may be loaned under the Fruit Preserving Indus- % try Act. Authority is given to borrow an additional £40,000 for purposes of the Eangitaiki Land Drainage Act. Borrowing powers under the Discharged Soldiers’ Settlement 'Act, 1915 arc extended from £IOO,OOO to 500,000. Power is given to co/iMa-ic to banks extended privileges- of note issue until six years after the termination of the present war. AMUSEMENT TAX. Rates of the Amusement Tax are set out as follows: Payment for admission (exclusive of amount of tax) exceeding (3d, but not exceeding 2s (3d, the amusements tax payable is Id. Exceeding 2s 6d, but not exceeding 5s the amusements ,tax payable is 2d. Exceeding ss, but not exceeding vs 6d, the ' amusements tax payable i s3d. Excecd- ; ing 7s 6d, but not exceeding 12s (id, amusements tax payable is 6d. Exceeding 12s 6d, one shilling for. the first 12s 6d, and one shilling for every ten shillings or part of ten shillings over 12s 6d. Entertainment includes any exhibition, performance, amusement, game or sport, to which persons are admitted for payment. This tax willcome into force on and after November Ist next. The method of payilig the tax is set out in clause 54. (a) With a ticket stamped with stamp (not before used) denoting that the proper amusement tax lias been paid, or (b) in special cases with approval of the Commissioner through a barrier, or by means of a mechanical contrivance which automatically registers the number of persons admitted, unless the proprietor of the entertainment has made arrangements approved by the Commissioner for furnishing returns of the payments for admission to the entertainents, and has given security up to an amount and in a manner approved by the Commissioner for the payment of duty. Provision is made for the computation of the tax where the Payment of admission is by means of a lump sum. Any person admitted without payment of the revenue duty is liable to a fine of £5, and the proprietor of the entertainment to a fine of £SO in respect of each offence. Exemption:— Amusements shall not be charged on payments for admission to any entertainment where the Commissioner is satisfied (a) that the whole thereof arc devoted to phlanthropic or charitable purposes without any charge on takings for any expenses of the entertainment; or (b) that the entertainment is wholly of an educational character or is cxclns’volw for the benefit of any school, or other educational establishment or institution not established or conduct id for profit; or (c) that the entertainment is intended only for the amusement of children, and that the charge is not more than one penny for each person; or (d) that the entertainment is provided for partly educational or partly scientific purposes (but for no other purpose) by a society, insrit itnn or committee not conducted or established for profit. Clause 58 provides that where the Commissioner is satisfied that the whole of the not proceeds of an entertainment are devoted to philanthropic or charitably mu-poses and that the whole of the expenses of the entertinmont do not exceed 20 per centum of receipts, there shall be refunded to the proprietor the amount of the Amusements Tax paid in respect of the entertainment. PENSIONS INCREASES BILL This BiM provides for an increase of £l3 per annum in old age, widows’, military (other than tre present war) and miner’s phthisis pensions, and £€ per annum in respect of each child of a widow receiving pension. This section is deemed to have been one -ative from September Ist, 1917, and shall continue in force during the present war with Germany and for twelve months thereafter and no longer.