8.—5.

D. G. CLARK.]

19

and (b) companies resident in New Zealand and carrying on business exclusively in any of the islands of the Pacific, not being British possessions, are assessable only in respect of income received in New Zealand. " Assessable income " is defined as — («.) All profits or gains derived from any business : (6.) All salaries, wages, or allowances (whether in cash or otherwise), including all sinus received or receivable by way of bonus, gratuity, extra salary, or emolument of any kind, in respect of or in relation to the employment or service of the taxpayers : (c.) All profits or gains derived from the. sale or disposition of land, or any interest therein, if the business of the taxpayer comprises dealing in such property, or if the property was acquired for tin; purpose of selling or otherwise disposing of it at a profit: (a!.) All profits or gains derived from the extraction, removal, or sale of minerals or timber, whether by the owner of land or by any other person : Provided that in the case of profits or gains derived as aforesaid from the removal or sale of timber or coal a deduction shall bo allowed equal to the cost of the timber or coal removed or sold by the taxpayer during the income year : (c.) All profits or gains derived from the business of dealing in live-stock, meat, butter, cheese, or wool, or in grain, fruit, or other crops, being the natural products of land (other than flax) carried on by any person other than this owner of that land : Provided that when the taxpayer is the owner of other land which being used for purposes of the said business is not in itself sufficient for the full sustenance of such live-stock or production of such other products, then the Commissioner shall assess for income-tax only the profits derived from dealing in so much of the above-named live-stock or products as is in excess of the capacity of the said land to fully sustain or produce : (/.) All rents, royalties, fines, premiums, or other revenues (including payments for or in respect of the goodwill of any business, or the benefit of any statutory license or privilege) derived by the owner of land from any lease, license, or easement affecting the. land, or from the grant of any right of taking the profits thereof : (g.) All interest, dividends, annuities, and pensions : (h.) Income derived from any other source whatsoever. Income exempted. —The exemptions are — (a.) The salary and emoluments of the Governor-General in respect of his office : (6.) The income, other than income received in trust, of a local authority, or of any public authority other than the Public Trustee and the State Advances Superintendent : (c.) Income derived from sinking funds in respect of the public debt or of the debt of any local authority : (d.) The income of a building society under the Building Societies Act, 1908, or of a savingsbank under the Savings-banks Act, 1908 : (c.) The income of a separate institution under the Hospitals and Charitable Institutions Act, 1909 : (/.) Income derived by any person from any pension under the War Pensions Act, 1915 : (g.) Dividends and other profits derived from shares or oilier rights of membership in companies, other than companies which are exempt from income-tax: (h.) Income derived by a person who is not (within the meaning of this Part of this Act) resident in New Zealand, from stock or debentures which have been issued by the Government of New Zealand, or by any local or public authority, or by the Public. Trustee acting as the agent of a land-settlement association under the Land Settlement Finance Act, 1909, and the interest on which is payable out of New Zealand : (i.) Income derived by the trustees of a superannuation fund : (j.) The income of a friendly society, except so far as derived from business carried on beyond the circle of its membership : (k.) income derived by trustees in trust for charitable, religious, educational, or scientific purposes of a public nature within New Zealand, or derived by any society or institution established exclusively for such purposes and not carried on for private pecuniary profit : Provided that if the aforesaid purposes are not limited to New Zealand the Commissioner may apportion the income in such a manner as he deems just and reasonable between such purposes within New Zealand and the like purposes out of New Zealand, and may allow to the trustees, society, or institution a partial exemption accordingly : (/.) Income derived by any owner of land in respect of the profits derived from the direct use or cultivation thereof, save that this exemption shall not apply with respect to any profits or gains, extraction, removal, or sale of minerals or timber, or dealing in live-stock, meat, butter, &c. (m.) Income expressly exempted 'from income-tax by any other Act to the extent of the exemption so provided. Computation of Income. Year and Basis of Assessment. —The year of assessment runs from the Ist April to 31st March, the basis of charge being the income of the preceding twelve months. Reductions. —Reduction is allowed in respect of — (a.) Repairs of premises and the repair, alteration, or supply of implements, utensils, or machinery used in the production of income up to the sum usually expended in any year.