STATE TAXATION

Wairarapa Times-Age, 16 October 1941, Page 6

STATE TAXATION

PROPOSED SWEEPING CHANGES

IN NEW SOUTH WALES.

HEAVY CALL ON COMPANIES.

(By Telegraph—Press Association —Copyright) SYDNEY, This Day< •

Sweeping changes in the State taxation system are provided for in a Bill introduced in the Legislative Assembly by the Premier (Mr McKell). New South Wales companies will be taxed at the rate of 3s in the pound, while companies in other States, making profits in New South Wales, will pay 3s 6d in the pound. Mr McKell said that to recoup the revenue lost by abolishing the wages tax and reducing the tax on lower incomes, the Government would close avenues through which taxation was been evaded. It proposed, firstly, the abolition of the tax rebate of 2s 6d in the pound on dividends from Australian companies; secondly, a tax on income earned both in and out of the State; thirdly, producers of goods in another State to pay on their goods sold in New South Wales the difference between the taxation in their own state and in this State; fourthly, a tightening of the taxation of incomes of family partnerships, family trusts and post-nuptial settlements, to prevent existing tax evasions; fifthly, abolition of the deduction allowed to companies on interest paid on debentures raised outside Australia; sixthly, abolition of the joint assessment of companies consisting of the same shareholders, so that one company’s loss could not be offset against other company’s profit; seventhly, profit on the sale of goodwill to be taxable if a business is resold within seven years; eighthly, the maximum deduction to be allowed for gifts to charities to be £lOO.