TAXATION.

Taranaki Daily News, Volume LV, Issue 74, 14 August 1912, Page 5

TAXATION.

PROPOSED CHANGES IN THE; LAW. INCREASED GRADUATED PROPOSAL. (By Telegraph—Own Correspondent.) Wellington, Last Night. , land- and Income Asse»sme*t Amendment Bill was brought down by Governor's message in the House of Representatives this afternoon. The Bill proposes to carry out the promise made in the Budget to increase the graduated tax by 25 per cent, on estates of from £30,000 to £40,000, and it also proposes some small reductions in the tax on estates of from £SOOO to £15,000. Several technical amendments are also proposed. The definition of "agent" ia widened, so as to make it apply to all persons acting as agents in New Zealand, notwithstanding that the actual contract for sales effected by them is confirmed out of New Zealand. Another amendment provides that a mortgage shall ba assessed at the full amount of the security, and it also provides a basis for the assessment of annuities. It is further provided that a purchaser is the owner, even if not in possession, and to make an agent for a non-resident principal personally liable for the tax. Another amendment proposed is that the taxation of agents for non-resident traders may be carried out on more | equitable terms so far as the collection of revenue is concerned The Bill provides that in cases where widows have children dependent on them the Com"™er T ma y grant exemption up to ;t.iooo. It also provides that as soon as a person enters into a binding contract for the purchase of land he is to be considered the owner. Further, the Bill proposes an amendment desired to overcome the difficulty that has been experienced n collecting the absentee tax from shareholders in companies who are resident abroad. It is proposed to make companies liable for tax on the profits derived from investment in land and from dealing in land. All pastoral lessees are to be placed on the same footing as far as charging income tax on their profits is concerned. The income of a married woman is to be included in the husband's income for the purposes of taxation. An entirely new proposal is that income tax shall be payable on all sums received in respect of hotel licenses, and the person who pays the license fee is empowered to deduct the payment in his return. J. he estates of deceased persons are put on the same level as other individuals from w/iom arrears of lax are recoverable.