FEDERAL INCOME TAX.

Ashburton Guardian, Volume 51, Issue 129, 13 March 1931, Page 6

FEDERAL INCOME TAX.

CHECK ON DEFAULTERS. WELLINGTON, March 12. As a check on defaulters, the Federal Income Tax Commissioner has circularised Melbourne sharebrokers asking for particulars of their clients’ dealings in New Zealand Government or Dominion municipal stocks. This follows an amendment of the taxation Acts last year, which made overseas income subject .to Federal income tax, provided it is not taxable in the country of origin. Within the last few months there has been a strong movement of funds from the Commonwealth to New Zealand and elsewhere, because of the lack o! confidence created by the failure of the Federal and New South Wales Governments to fall into line on a sound policy of reconstruction. New Zealand Government 'debentures have been selected by many nervous investors as a medium for transferring their funds outside Australia. The Commissioner evidently desires to guard against any evasion of tax by these investors. While they have no desire to shield tax defaulters, many brokers resent their offices being made information sources for the Taxation Department. It is feared that some clients will bo offended by the disclosure of their affairs, even to a Government authority, and may arrange their investments through other sources,