NEW TAXATION.

Taranaki Daily News, 23 November 1915, Page 6

NEW TAXATION.

RETURNS REQUIRED OF FARMERS. The notice published last week by the Tax Department calling for further returns from every person and company having derived income from land, within the meaning of specified Acts, during the year ending March 31, 1915, has created more than a little interest. It is a demand for a basis for additional taxation under the Finance Act of last session. The new return called for asks for a state of income received (1) from farming; (2) from rents of property; and simple but comprehensive tables need to be filled up. Thus the matter of receipts and expenditure in respect of farming operations there is required a statement under the heading of receipts of money which came in, For live stock sold during the year. For produce sold —wool, meat, hides, skins, wine, dairy produce, grain, and other produce. For rent of any part of farm let for grazing purposes. For stock or implements hired out. From any other source in connection with farm. The estimated value of meat and other produce of the farm used for private or domestic purposes. Value of live stock and produce on hand March 31, 1915. Under the heading of expenses and outgoings, tl|e requirement is a statement in respect of the following matters:—

I/ive stock bought during the year. Kent paid for farm to . Mortgage interest paid to . Seed bought. Feeding stuff bought for stock. Wages paid for labor on farm. Amount paid for rations bought for employees. Other expenses incurred in working farm. Rates and lire insurance.

Value of produce and stock on hand. It is provided by a note that a copy of the taxpayer's balance-sheet and profit ami loss account of statement of assets and liabilities at the beginning anil end of the year, accompanied by a statement of drawings, will be accepted in lien of the above. The balance on the account will he shown as loss on farming or as income from farming. In respect of receipts from rents the detailed statement requires:—■

Description of the property let, names of tenants, amounts paid for repairs, rates and insurance on properties let, the not amount- after the deduction of these charges from the gross rent being entered as not income.

Apparently under the law there is to he deducted from the income tax payable on land the amount which has been paid as land tax, so that the farmer does not pay twice; but if the tax leviable on income from the farm exceeds that leviable as land tax, he pays on the excess.