FINANCIAL COMPULSION.

Taihape Daily Times, 19 April 1918, Page 4

FINANCIAL COMPULSION.

SIITJ. G. WARD’S VIEWS.

WELLINGTON, April 18 Sir Joseph. Ward, interviewed today ou the subject ol the compulsory clauses of the Finance Act made the following statement, which will be of interest to those concerned; —As. doubts appear to exist in the minds, of many people regarding their obligations to subscribe ro the War Loan under the compulsory clauses of the Finance Act, it may be well to explain clearly how it is proposed to administer these clauses. Section 30 of the Finance Act of 1917, which provided compulsory clauses vjxnder that Act, has been repealed and the only compulsory clauses which are now operatiye are those contained Financial Act of 1918. Under these later clauses the Commissioner of Taxes isemipowered after comparing payment of land and income tax paid by any individual with the amount of subscription to the War Loan of that iru ■■ ■■> dividual, to serve notice on taxpayers claiming an additional sum by wajfr>o£h'.n subscription to the Loan. Provision; : - is made for the sitting 1 of an Board to deal with 'any objection to^ T: the amount assessed by the Commissioner of Taxes, and a further appeal: to a judge of the Supreme Court Is also provided by the Act. Every perison is liable to : be called upon to coni, vh tribute to the extent of six times the average amount of land income taxi assessed to him for the years 1915-16, 1916-17, and 1917-18. Thisc does noth”- -1 mean that the Commissioner of Taxes’ :i

is compelled to claim six times the amount of such taxation, but this provision is merely inserted in the 'Act toprovide a maximum amount beyond which the Commissioner of Taxes cannot go. The Act provides that subscriptions to the Loan under these compulsory clauses will bear interest of 3 per cent only, TStrt I wish it to be thoroughly understood that timp will be given to enable persons to "discuss their position with the Commissionerof Taxes before penal clauses are put. into operation. Considerable discretionary powers are given to the Appeal Board, who in dealing with any appeal will take into consideration the fact that an appellant had sub'scribed liberally to previous loans, or that he had business losses, or that his circumstances were _ such as would justify him in claiminga partial or whole exemption from the provisions of the Act. The object off the compulsory clauses is net so much to compel a willing contributor to subscribe more than he has done as it is to compel the shirker to shoulder his fair share of the financial burdens off the country. In concluding his remarks, Sir Joseph Ward said he felt it his duty to state that he had given instructions for the compulsory clauses to be put into operation, as he found it necessary that this should be done. He would make a general statement about the present Loan and give information concerning the £20,000,000 Loan in the course of a day or so.