DEATH DUTIES.

Taranaki Daily News, 16 October 1920, Page 5

DEATH DUTIES.

MEW REVENUE SOURCE. JO PRODUCE £300,000. . ; By Telegraph.—Press Association. ■ _ Wellington, Last Night. In moving the second reading of the Death Duties Amendment Bill in the House of Representatives to-night, Mr. Massey said recent happenings made it necessary to strengthen the country's finances, and he believed the provisions of the Bill would do this. It was necessary to find money to subsidise the butter producers, and possibly to stabilise the wool position, and this could not be done out of the Consolidated Fund at present. He hoped also that the additional revenue obtainable under the Bill' would enable the Government to assist annuitants. He intended to ask the House to agree to an amendment providing that in cases where persons or firms set apart property or funds for tho purpose of providing retiring allowances for employees, those funds should be exempt from the payment of gift duty. It was expected this Bill would produce an additional £300,000.

Mr. T. M. Wilford (Leader of the Opposition) supported the Bill, but expressed regret that it was not introduced before. He thought the exemption might be raised from £IOOO to £2OOO on estate liable to duty. He asked i.f an opportunity could not be taken to remit tho £OOOO duty assessed oil the Turnbull library, which was donated to the Dominion.

The Premier replied that the matter was under consideration by Cabinet. Mr. R. MeCalhim (Wairau) agreed with the Bill, but said he would mpva in committee that the succession duty on successions exceeding £20,000 should be 30 per cent. ■ Mr. D. Jones (Kaiapoi) feared the Bill would to some extent defeat its own intentions so far as the rich man was concerned by forcing him to put a large portion of his wealth into liquid assets. Mr. Downie Stewart (Dunedin West) did not agTee with the contention of critics of the Bill who thought estate and succession duties were being fixed at too high a rate, though he thought the income tax imposed a day or two ago might have a serious effect on capital employed in industries, some of which were already paying a very proportion of their income in taxation. In the matter of estate and succession duties this argument did not apply, as those benefiting by a man's death could not reasonably complain at the tax, since they wero not called upon to make any sacrifice.

Mr. C. E. Statliam (Duncdin Central) agreed that n high income tax was a danger, as it deterred the influx of capital, and high death duties might cause people of wealth, now in the Dominion to change their domicile. He supported the Bill as a measure to meet the necessity of the moment, though he had misgivings as to the effect, of its being continued any length of time. Mr. 0. Hawken (Egmont) thought the policy of subsidising industries, such as butter a:nd wheat production, was not sound. The second reading was carried on the voices. . In committee, sub-clause eight of clause 4 was amended to make the additional succession duty of 10 per cent, payable on all moneys exceeding £IOOO payable to a person other than the wife, husband, or near relative of a deceased person. The Bill was reported and set down for consideration next sitting day.