THE INCOME TAX.

Taranaki Daily News, 30 July 1919, Page 6

THE INCOME TAX.

DETAILS OF ITS INCIDENCEWellington, July 28. "In view of the fact that the war id now over, the whole question of the incidence of taxation i--; naturally one of much interest to the people of New Zealand," said the Hon. Arthur M. Myers, Acting-Minister for finance, to a press representative to-day, "and I feel sure that, the return which the Commissioner of 'Axes has compiled in this connection, and which I am now publishing for tlic Information of the public, will be welcomed. Tlic re,turn given below," continued Mr, Myers, "shows the different sources from which the ordinary and special war income taxes were derived for the financial year 1917-IS, the number of taxpayers under the various heads, also the individual and aggregate amounts of the incomes on which .they were assessed, together with the taxable balance and tax assessed." The Minister points out that this is the first year a return giving such full particulars in this connection lias seen compiled by the Department, and that it is intended to make up similar statements for succeeding finanical years, which will prove useful for purposes of comparison. "This being the first return of its kind, it is not possible to compare it in full with figures relating to previous financial years," continued Mr. Myers, "but I have looked up two returns relating to recent .financial years (i.e., 1010-11 and 1914-1?) respectively), which have been compiled by the Department in response to orders of the House of Representatives, and these I think may be used with value for purposes of comparison in certain particulars with the more recent figures. "It will be observed that in the return for 1917-18 figures are given hinder a heading "Landowners," and these, it may be pointed out, relate to the income derived from fanning and the rent of land. This class of income has not been assessed for income tax prior to the year ended March 31, lfllU, as thfe Act authorising its collection was passed only in 1915. Therefore, for the comparison with the previous returns mentioned above to be of value, it will be necessary to exclude "the figures under this heading from the total quoted in connection with the financial year 1917-18 It must also bo remembered that a certain number of taxpayers under this head are already inaluded under one or other of the remaining headings." NUMBER OF TAXPAYERS FOR FINANCIAL YEAR 1914-15 AND 1017-18 Income. 1914-15. 1917-18, Under .-£9OO 11,351 21,250 £9OO to £IOOO 372 53) £IOOO „ £ISOO 704 1530 £ISOO „ £2OOO 573 632 £2OOO „ £3OOO 403 573 £3OOO „ £4OOO 147 230 £4OOO „ £7OOO 168 285 £7OOO „ £IO,OOO 52 99 Over £ 1 ",000 137 215 Totals ... 13,907 25,401, The reason why the commencing figure relating to the income earned in the above return is not lower than £9OO is because the 1914-15 returns show different amounts of incomes below £9OO, so it has been necessary to total these figures and show them as above. The large increase in the number of taxpayers for 1917-18 is due in a large measure, as will readily be surmised, to the increased salaries received and profits on trading made on account of war conditions prevailing during the period under review. SOURCES OF INCOME TAX. Income Tax No. assessed, charged. £ £ Salaried Persons:— 1917-18 8,070 3,538,790 40,198 1914-15 4,033 2,039,004 24,676 Increase 4,037 1,499,750 21,521 Traders and Manufacturers:— 1917-18 7,637 5,727,035 200,323 1914-15 5,308 4,119,107 100,723 Increase 2,269 1,607,808 93,594 Companies:— 1017-18 1,045 9,049,170 1,245,067 1914-15 1,590 5,486,301 354,250 Increase 355 4,162,869 890,8115 Professional:— 1 1917-18 2,537 1,883,810 50,975 1914-15 1,705 1,320,742 32,334 Increase 832 503,068 24,640 Various:— 1917-18 17,760 15,846,508 087,208 1914-15 1,271 885,047 20,852 Increase 16,489 14,961,521 000,355 It will be noticed that the figures given for 1917-18 for comparison purposes relate only ,to the ordinary income (ax collected during that year, in addition to which there is a special war tax which, except in the case of small incomes, is far greater than the ordinary .taxTHE WAR TAX. The war tax paid in 1917-18 by the various classes referred to was as follows: £ Salaried persons ;.. 09,806 Traders and manufacturers .. 29"),033 Companies 1,8f)2,128 Professional 77,007 Landowners 951,713 The ordinary income tax paid by landowners was £s2ojMil. The reason for the large increase of the figures for 1917-1,8 over those for 1914-15 in the income tax derived from companies is due mainly to the increased profits and increased rates charged and, to a lesser extent, to the flotation of private businesses into companies. I.t will be noticed also that a very substantial increase is shown under the heading "Various." This is due to a i large extent to the inclusion in the £gureK for 1917-18 under this head of the figures under the heading "Landowners," referred to previously.