WAR TAXATION.

Taranaki Daily News, 7 September 1917, Page 7

WAR TAXATION.

the finance bill. [some additional amendments. Amendments to the Finance Bill were introduced by Governor-General's Message in the House of Representatives on Tuesday. COMPULSORY SUBSCRIPTIONS In connection with the provision for compulsory contributions to war loans, an amendment is made in the date of assessment The provision applies to persons whose taxable income war, not less than £7OO for the year ended March 31, 1010. The year mentioned originally was 1017. Some new sub-classes relate to the Appeal Board which is to hear appeals against compulsory contributions to the ar Loan. They read as follows: "For the purposes of this section th.Ti is hereby established a special Board of Appeal.' consisting of the Controller and Auditor-General (who .shall be the chairman of Lhe board), the Commissioner of Taxes, the Secretary to the Treasury, and the Government Insurance Commissioner. "Turee members of the board shall form a quorum. Every question before the board shall he decided by a majority of the votes of the members present. The chairman shall have a deliberative vote, and, in the event of an equality of voting, shall have a. easting vote also. "In the absence 'of the chairman from any meeting of the board the Commis sioner of Taxes shall act as chairman. ''lf at any time any member is absent, or is unable to act, the Minister of Finance may. by warrant under his hand, appoint some person as the deputy of that member during his absence or inability, and Hie deputy so appointed remains unrevoked, have and exercise all the powers and functions of the member whose deputy he is. "Every appeal under this section shall be heard and determined in private. "Except as otherwise provided herein, the board shall regulate its own procedure." Tim Appeal Board is fo have the powers of a Koyal Commission. THE WAR TAX. Alterations are made in the schedule pf the Finance Bill relating ty the special war tax. The -lauses now read as follow: 1. On income assessable under Subsection (3) of Section 112 of the Land and Income Ta.v Act, 101(5, the special war tax shall be at the rate of Is- Od for every £1 thereof. 2. In all cases other than those referred to in the last preceding clause the rate of special war tax shall be determined as follows: (a) Where the income on which the special war tax is payable does not exceed £4OO the rate shall be (3d for every £1 thereof, increased as provided in paragraph (c) hereof. (b) Where the income on which the special war tax is payable exceeds £4OO the rate shall be tid for every '.■ CI thereof increased by one twohundredth part of Id for every £1 in excess of £4OO, but so as not to exceed 3s in the £l, and further increased as provided in paragraph (e) hereof. (e) To the. rates prescribed by paragraphs (a) and (b) hereof respectively there shall be added an additional rate equal to 50 per cent, thereof, and the total shall be the rate of special war payable by the, taxpayer.

EXEMPTION FOR CHILDREN. The special exemption granted in respect of the dependent children of a payer of income tax l is extended to cover all children under sixteen years of age, regardless of the income of the taxpayer. (PROTECTION FOR BANKS. Protection is provided for banks in respect of advances to clients for investment for war purposes. The Registrar of Inscribed Stock is empowered to accept from a bank it certificate of lien, to the effect that the bank has advanced to a person or company the whole, or such part as may be specified, of the money required for investment in the War Loan. The Registrar will then enter upon the Registrar of Inscribed .Stock "a memorandum as to such certificate of lieu, and thereafter, until ihe certificate of lien is withdrawn with the consent of the bank, no dealings with the inscribed stock shall bo recorded by the Registrar, and no stock-certificate or certificate of title shall be issued by him in respect of such inscribed stock except with the consent of the bank." OTHER PROVISIONS. The State Fire Insurance Office is to pay income tax on the same ba-iis as a company. Special provision is made with respect to the incomes of foreign insurance companies. The taxable income is to be "diminished by an amount equal to two per cent of the company's investments in New Zealand, (he income, from which is not exempt from taxation." The fees payable on warrants for making cigarettes by hand are increased. The needs of local authorities which .depend upon gold revenue are met by a provision that ''duty shall be payable on gold held on behalf of the Imperial (Jovcrnment by any bank tarrying on the business of banking in New Zealand .as if that gold had been expow .1 from New Zealand." This provision will operate for the period of the war and six months after.