Wirarapa Times-Age WEDNESDAY, DECEMBER 15, 1943. AN ILL=SUPPORTED OBJECTION.

Wairarapa Times-Age, 15 December 1943, Page 2

Wirarapa Times-Age WEDNESDAY, DECEMBER 15, 1943. AN ILL=SUPPORTED OBJECTION.

COMMENTING on a suggestion by the Leader of the Opposition (Mr Holland) that an expert and representative committee should be set up to investigate the feasibility of the adoption in New Zealand of the “pay as you go system o income taxation, the Minister in Charge of, the Land and Hicome Tax Department (Mr Nordmeyer) has said, amongst other things, that although the difficulties standing m the way of this chano'e are considerable, they are not insurmountable. Ila , he added, was obviously so, because instalment schemes of taxation payment were inforce in other countries and it they con do it so could New Zealand.” Mr Nordmeyer also said, however, that the manpower situation at the present time would not permit of the introduction of a compulsory scheme of income tax payment by instalments This reads very much like an open confession that the machineij of income tax collection in New Zealand, either because it is too intricate and complicated or for some other reason is Jess efficient than those of the countries which have adopted the system of “pay as you go” income taxation, or are considering its adoption, in spite of manpower and other difficulties, in any other circumstances it would appear to be obvious, as tlie Minister himself has suggested, that what has been done in these countries could be done in New Zealand. On the facts disclosed, Mr Nordmeyer s rejection ot the suggestion that a committee should be set up to investigate the “pav as von go” schemes operating elsewhere appears to res on weak and uncertain grounds. “Full information, as to. these schemes,” the Minister stated, “is already in the possession of my Department, and no committee, I believe, could overcome the material, difficulties I have outlined.” The position thus indicated calls in itself for investigation and it may be hoped that Parliament, when it. meets, will demand much more definite and detailed information on the subject than has yet been, gn,en. If the manpower shortage is so much more acute m Neu Zealand than in the United States, Canada, Britain and Australia, as to make it impossible for the Dominion to.do what these countries have done or are proposing to do in. making an admittedly desirable change in tax collection methods, that state of affairsUn itself calls for investigation—admittedly from a broader standpoint, than that of a reform of taxing procedure. If, however, our manpower difficulties are greater than those of the countries just named, that may well be regarded as providing an additional reason, for overhauling our taxation system with a view to simplifying it in the greatest degiee that is practicable. . It is on all grounds desirable that our taxation laws should be made as simple and straightforward as possible, so that the individual taxpayer may be able to ascertain, readily precisely what his liabilities are—a thing he is in many instances unable to do at present—and incidentally in order that the amount and complexity of the work to he done by the Department may be reduced to a minimum. An adoption of Mr Holland’s suggestion that schemes of “pay as you go” income taxation operating in or contemplated in other countries should be investigated in light of New Zealand conditions very possibly might point the way to a simplification and improvement of taxing methods which would be valuable in itself and would facilitate the early institution of an instalment system. Mr Nordmeyer’s statement evidently should not be accepted as the last word, on the subject, even lor the time being.