TAX ON INCOMES.

Taranaki Daily News, 19 March 1920, Page 5

TAX ON INCOMES.

THE DOUBLE SYSTEM. IMPORTANT RECOMMENDATIONS. By Telegraph.—Press Aasn.—Copyiifiht, Received March 10, 1.15 a.m. London, March 17. The Income Tax Commission, reporting in reference to foreign countries, dcos not recommend any change in the existing situation as regards double taxation. On the general question of assessment the report proposes that the full income arising abroad from all foreign find colonial securities or possessions, other than trade, should be assessable in tlu> case of persons residing in the United Kingdom. As regards trading operations of British registered companies the Commission considers the present doctrine of preference or control should not he weakened; also whore operations are carried on abroad by a foreign board or a subsidiary company, the parent company and the subsidiary one should be deemed controlled from within the United Kingdom if the majority of the voting power can be exercised therein.

In the matter of assessment, the report suggests that earned income should be diminished by one-tenth for the purpose of assessment and the diminished income charged at a rate applicable to unearned income; also that the first £225 of tarjable income should be charged at half the standard rate of tax. It proposes further that dividends of companies controlled abroad, though registered in the United Kingdom, should be taxed in the hands of the paying agent, who is entitled to deduct the tax on the payment of dividends.—lmperial Service.