INCOME AND EXCESS PROFITS TAX.

Taranaki Daily News, 9 April 1917, Page 6

INCOME AND EXCESS PROFITS TAX.

POSITION OF DAIRY FARMERS. The following, which has passed between Mr. C. A. Wilkinson, M.P., and tlie Prime Minister, with respect to the income and excess profit tax, lias been handed to us for publication: Hon. Sir James Allen, / Acting Prime Minister, ' Sir, — 1. beg to bring under your notice the fact that a considerable state of dissatisfaction prevails In this district in regard to amounts assessed and demanded from farmers by way of payment under above headings. Wliilo admitting the necessity of making assessment and knowing that it is an impossibility for the Commissioner of Taxes—notwithstanding his desire to be fair—to make a just assessment in all cases, and at the same time having a belief that in many instances these assessments, being the first received by farmers, are considered as a demand for payment, and are being paid irrespective of whether the sums stated therein are correct or otherwise—l therefore beg to urge upon the Government the advisability of immediately establishing a Royal Commission to take evidence from tho"se who are aggrieved. Each case of injustice, where alleged, could then be investigated and a. correct amount of tax paid over to the Department, and In cases where excess amounts had been paid in error through ignorance or want of knowledge on the part of the payer, that such sum should be refunded without delay. I cannot urge this matter upon you too strongly, the question being a burning one in farming districts at the present time. I might say that in all probability the farmers by next year will have more knowledge of the requirements of tlie Taxing Office, and will then be in a better position to make the necessary returns in order that the rig'ht amount of tax could be collected. lam aware that provision for appeal has been madev and that it will probably be suggested that an officer of the Department may be instructed to visit country districts, but either course, in my opinion, will not lie satisfactory. I might also mention that I am forwarding a copy of this letter to the Acting Minister of Finance.—l am, etc., C. A. WILKINSON. C. A. Wilkinson, Esq., M.P., Eltham.

Dear Mr. Wilkinson, —I have to acknowledge receipt of your letter of the l'2th instant, stating that considerable dissatisfaction exists in your district regarding the assessment of farmers for income and excess profits tax. I have made careful enquiries into the matter, and regret that. I cannot agree >vith your suggestion for the appointment of a Royal Commission. As you are awars, all assessments for income tax are treated as strictly confidential, and objections are dealt with in closed Court. It would, therefore, be an infringement' of the law in this respect if matters of this kind were dealt with before a. Royal Commission, and it is doubtful whether sucli a proceeding would mesfc with the approval of the taxpayers themselves. I am assured that the grievances refer to exist only among a comparnthely small minority. The majority cf the farmers are making their returns and paying their tax willingly. .Any difference between them and the- Department is adjusted with the utmost promptitude possible. It is only with t'lie minority who have failed to make returns or otherwise comply with the requirements of the law that there is any trouble at all, and this trouble arises irom the fact that in these cases default assessments have been made. ft has been necessary to make de-„ fault assessments in some ?ases because the taxpayers have ignored all notices, ond complaints have been received by me from taxpayers who are making returns and paying tax, that t'he others are evading the tax, and boasting of it. I might add that the correctness of an assessment for income tax purposes is dependent, not on any ouestioii of opinion, but on a question of fact, which can be established beyond argument if the matter is approached with the proper figures—l am t etc., J. ALLEN.