EVASION OF TAX

Waikato Times, Volume 127, Issue 21206, 31 August 1940, Page 4

EVASION OF TAX

LOOPHOLE FOR COMPANIES CLAUSES IN FINANCE BILL (By Telegraph.—press Association) WELLINGTON, Friday A clause in the Finance Bill No. 2, which was passed by the House of Representatives today, was explained by the Minister of Finance, the Hon. W. Nash, as designed to prevent the evasion of tax payments. Where the interest in a proprietary concern up to one-fifth was held by one party, it was provided that the income should be aggregated for the purpose of assessing tax. Mi.' N ash said that a short time ago it was noticed that a number of companies was being formed and that ope person here and another there was interested in the lot. There were operating companies, holding companies and proprietary companies, just for the sake of holding shares. “This stops the little hole through which some of the cleverest people in New Zealand crept, and, even though they got through, they have , to get back,” the Minister added. Another clause, also designed to present the evasion of company in- I come tax payments, the Minister said, related to interest on debentures issued in substitution for shares. He thought that two companies had already operated and one was proposing to operate. A third amendment to income tax law made sure that there was no double taxation of gold-mining companies.