17

8.—5

MINUTES OF EVIDENCE. Wellington : Monday, 14th April, 1924. D. G. Clark, Commissioner of Inland Revenue, examined. The Chairman : I understand, Mr. Clark, that you have prepared a summary of the law with regard to land and income tax as it stands at present: perhaps you would be good enough to read that to us ? —Yes, sir. The following summarizes the law in force for the financial year ended 31st March, 1924:— Land-tax. Returns and Assessments. —For the purpose of the assessment and levy of land-tax every taxpayer shall in each year in April furnish to the Commissioner a complete statement of all land in respect whereof he is assessable for land-tax as owned by him at noon on the 31st March in the preceding year, together with particulars of mortgages owing on the said land. "Year" means a year commencing on the Ist April and ending on the 31st March, both of these days being included. Prom the returns so made the Commissioner shall in each ■ year make assessments in respect of every taxpayer, setting forth the amount on which tax is payable and the amount of the tax. Notice of assessment shall be given to the taxpayer, and a date fixed within which he may make any objection to the assessment. Objection. —Every taxpayer assessed for land-tax may object to the assessment within the time specified. Objections not allowed by the Commissioner may be heard and determined before a Stipendiary Magistrate. Magistrate's decision is final and conclusive on a question of fact, but appeal to the Supreme Court may be made on a question of law. Valuation of Land. —Land-tax shall be assessed on the unimproved value of the land owned by the taxpayer, and for the purposes of the Act the unimproved value as shown on the district valuation roll in force under the Valuation of Land Act, 1908, on the 31st March preceding the year of assessment shall be deemed to be the unimproved value of the land on that day. Provision is made to exclude from the unimproved value the value of any minerals, timber, or flax (other than the roots of flaxplants). A taxpayer may for the purposes of the Land for Settlements Act, 1908, fix his own unimproved value at an amount greater than the unimproved value computed in accordance with the Act, by —(1) Returning it in his return at a higher value ; (2) having it entered on the subsidiary roll in force under the Land for Settlements Act, 1908. Scope of Tax. —ln general the tax applies to every person who was the owner of the land at noon on the 31st March preceding the year in and for which the tax is payable, land-tax to be levied on the total unimproved value of the land so owned, diminished by certain special exemptions. Special Exemptions and Allowances. —(1.) When the unimproved value does not exceed £1,500, a deduction of £500 ; or when the unimproved value exceeds £1,500, a deduction of £500 diminished at the rate of £1 for every £2 of that excess, so as to disappear at £2,500. (2.) In lieu of the above there may be deducted, where the land was subject to a mortgage on the 31st March, the following amount: (a) Where the total unimproved value does not exceed £6,000, the sum of £4,000 ; (b) where the total unimproved value exceeds £6,000, the sum of £4,000 diminished at the rate of £2 for every £1 of that excess so as to disappear when that value amounts to or exceeds £8,000 : Provided that where the total value of the mortgages is less than the amount computed under (a) or (b), then the total value of the mortgages shall be deductible in lieu of the deduction provided by (a) or (6). (3.) In cases where the total income of the taxpayer does not exceed £300, and where by reason of age, ill health, or other disability he is incapacitated from further earning, and where payment of land-tax in full would cause hardship, an alternative deduction may be allowed, by the Commissioner of a sum not exceeding £2,500. (4.) Where the taxpayer is a widow, having children dependent on her for support, and payment of the land-tax in full would cause hardship, the Commissioner may allow, in lieu of the special deductions hereinbefore provided, a deduction not exceeding £4,000. (5.) Where land has not been improved to the extent of £1 an acre or an amount equal to one-third of the unimproved value and which in the opinion of the Commissioner it is reasonable should have been improved to that extent, the deductions provided under 1, 2, and 3 shall not be allowed, and in addition 50 per cent, more in the rate of tax is chargeable than that fixed by the annual taxing Act in respect of other lands. A reduced rate of land-tax is provided in respect of land owned by a religious society held for religious, charitable; or educational purposes, the rate to be one-half of that chargeable on other land. Native Land leased to any person is chargeable with land-tax at half the rate applicable to European land, with a proviso that the tax shall not exceed one-fourth of the rental revenue derived from the land. Occupiers of Native land are made the agents for the Native owner and pay the Native land-tax. The Act empowers them to retain from the rent tax so paid. This proviso does not apply to Native trust lands administered by a trustee.

3—B. 5.