FINANCE BILL.

Taranaki Daily News, 4 July 1916, Page 6

FINANCE BILL.

PROVISIONS EXPLAINED. BY FINANCE MINISTER. Wellington, July 3. The Finance Bill to be introduced tin. evening deals with the ordinary income tax 'evy in every year, and is in fa c t the annual Taxing Bill with the addition that provision is made for a f> per cent tax in respect of all assemble incomeof £.IOO. The. Bill deals with the assessment of excess prolits duty (at the rate of -II per cent, of the excess profits). Pro vision is made for the method of a seer tabling the excess profits. This is hj) comparison with what is known as tin standard income, which is either (he average: income of the three years ur to March SI, 1014. or the average of an\ two of them or the income of anv one of them. Failing any of these throe methods the excess profits are to he as ccrtaincd by taking the excess of the taxpayer's income for the ycarf ended March 31, 1010, over fi per ?ent. of the capital invested in the business, wfth o fair remuneration for his personal exertion, not exceeding £5(10. Provision is made for the method of aseertainins capital and for adjustments to meet fluctuation in the capital of the business. Special provision is made for cases where taxpayers are occupying land foi which they pay rent in the productior of their income, and where there are anomalies arising out of the.valuation ol the leasehold interest or the amount ol rent paid. Special provision is made for consideration of losses during the.three years prior to the year in which the income assessed is earned. Provision is also made restricting the writing-down of stock-in-trade beyond the average writing-down of the years prior to March 31. 1!114. A specia' method of assessing the income of banks is provided. Any increase in the rate of interesl or any increase in rent over and above such amount as would secure the taxpayer a return of G per cent, on any additional capital expended on his property would be treated as excess profits. Provision is made that where the payment of the excess profits duty in one sum would cause hardship an extensiov of the time for payment may lie given but the Commissioner is to make a report to Parliament of his action in am case in which he extends the time fen payment, with his reasons for doing so without disclosing the name of the taxpayer. Salaries and wages are excluded fron the assessment of excess profits dutv. The Bill gives the Minister of Fin nncc authority for raising a twelve mil lion loan. This money or any portion ol it may be raised on the security of Treasury Rills, or may be raised by tin Minister of Finance oy agreement with the Treasury, off the Imperial Onvornmeat without forma! security, or or such security as may be agreed on. Al monies raised under this section are t<. be placed to the credit of the War Expenses Revenues Amendment Act o| 1014. The limit fixed by the PublicRevenues Act of 1010 as to the total amount that may be outstanding ai any time in respect of Treasury Bill* shall not apply to Treasury Bills issued for war purposes. Power i- giveui for the renewal of Treasury Bills from time to time by endorsement by the Minister of Finance or the High Com missioner. A clause is inserted to rai-e money oi renew loans At rates of interest in excess of those stipulated in the antheris ing Act. This is made retrospective', ih. reason being that, owing 1o the con version proposals brought down froir. time to time by (he Imperial Oovern ment, the Minister is never quite certain as to the rate of interest whi,.h New Zealand is actually paying for monev whie-h has been borrowed. The rates mar at any time fluctuate nnd mav exceed the limits provided in the authorising Act. The Bill deals with linking and 'onus Tt is provided thai, nniwiihslamliu." wthin? in the Bonk-in? Act or in I l '- "barter of an«- bank car-wins on husi tmss i" New Zealand, ihe C.overnor-in-Council mav frsm lime to time- make certain rcniatinns, incluelbie- (be suspension, alteration or variation of Ihe terms, conditions or reslrie-tions relating to the issue of such notes by anv bank and (he mak'nir of s'ucli notes legal teni!er in New Zealand. Beegnlations mav also be made for altering Ihe amounl of the reserve of coin, bullion nm\ nublie secur'tics provided to be belli in New Zealand bv anv bank against, th" de-bts en«ae-enients nnd liabilities of such haul; and for providing lhat bank notes of tli» . denomination of 10s mav be lawfully issued in New Zealand. Tn this part of ihe Bill (he Cnvernor-in-Couucil is given power to mike regulations regulatinc the rates of interest that may bo paid on monev in-ested in New Zealand by ivav of fixed deposits or bv mortgage. The Minister of Finance is enmowerc:! ;o raise .0100.000,0(10 bearing interest at e rate not exceeding -I'/': per cent., such monev to be paiil into (he nnbli.' account to the credit of the p„1,1i,. Works fund and to be used for puMi" works. The Bill provide'.s that no stamp duly shall be payable on any power of altorney executes! by anv person who is a member of the Expeditionary Force. The Bill deals with (lie Public Trust Office. It is provided (hat where (he estate of a deceased member of the expeditionary :'orce under administration bv th<' Public Trustee is of less v}ilne (ban ,-Cinn it may be distributed or conveyed and dealt with witlieiut (he prescribed notices being given as laid down in the Public Trust Act. Provision is also made' lhat where the' net profits of the Public Trust Office in any year exceed the sum of €20,000, the Covernor-in-Cnuncil mav direct that such profits, or any part of them, lie credited pro rata as a bonus to each estate or account in the office.