TAXING METHODS

Wairarapa Times-Age, 4 November 1938, Page 5

TAXING METHODS

BURDENS ON COMPANIES

ASSOCIATED CHAMBERS DISCUSSION. READJUSTMENTS SOUGHT. (By Telegraph—Press Association.) AUCKLAND, November 3. A motion again drawing attention to the unfair incidence of land tax and urging the abolition of the principle of graduation was moved by Mr T. W. Gibbs (Canterbury) at the conference of the Associated Chambers of Commerce.

Mr Gibbs said that in the last 40 jtears there never had been such a time of difficulty in disposing of land and thus escaping unjust burdens. The figures were too steep, and in the lower grades they were steeper than they had ever been in the history of the country. The motion was seconded by Mr N. B. Spencer (Auckland), who said that the graduated land tax was essentially a penal tax and had now entirely outlived- its usefulness. Mr M. H. Oram (Palmerston North) moved that the following words be added: or in the alternative the conference urges that full exemption should be allowed in respect of mortgages, that the special allowances previously in force when the graduated land tax operated, of 5 per cent of the unimproved value of land off assessable income in computing the tax, should be reinstated, and that anomalies should be immediately removed.

The mover agreed to accept the amendment as part of the motion and the remit was carried. Inequalities in company income tax were quoted by Mr D. G. O’Toole (Wanganui), who moved that the present method of taxing companies as if they were individuals was wrong in principle, and urged that the system be equitably readjusted. The opinion that the principle of taxation was fair was expressed by Mr C. L. Calvert (Dunedin). Mr A. M. Seaman (Auckland) moved the addition of the words ‘along the lines of recommendations by recent taxation commissions.” Mr Gibbs moved as a further amendment the omission of the words “is wrong in nrinciple,” and the addition “has been carried to a limit which threatens taxable capacity and urges (hat the system be equitably readjusted on the lines suggested by recent taxation commissions.” This amendment was accepted, and the motion carried in that form. Further complaints of injustices in the incidence of taxation were made by Mr P. O. Smellie (Dunedin), who moved a remit drawing attention to the existence of and the tendency to increase unjust methods of raising taxation, calling upon the Government to remove this blot and asking that a system of taxation commissioners similar to the English system be set up to give the taxpayer the right of appeal from the department’s rulings without having recourse to litigation. Mr Smellie said this was not an attack on high taxation nor on the present Government. These injustices aad been in the system for many years. An amendment favouring the setting up of a special taxation vigilance committee was added and the motion was carried.