INDENT AGENTS AFFECTED.

Auckland Star, Volume XLII, Issue 217, 12 September 1911, Page 4

INDENT AGENTS AFFECTED.

AMENDMENT OF. INCOME TAX. , HITTING AT FOREIGN TRADERS. With the object of recovering income tax from non-resident traders on business done in New Zealand through aa agent, provision is contained in the proposed amendment to the Land and Income Assessment Act presented to tho House by' the Government recently, making the agent responsible for the pay. ment of the income tax aasessabla against the principal. It is expressly declared in section 4 of the bill that '"if l la is. agent for a non-resident trader he is hereby made personally liable in all cases for the income tax payable by his principal." If this provision is passed into law indent and commission agents as well as firms handling foreign goods on a commission basis, recognise that they will be seriously affected, and ars moving in the direction of securing a modification or the elimination of the clause. A meeting of Auckland agents is to be held in the. Commercial Travellers -and Warehousemen's Association rooms this evening, and Mr. R. Hall of Wellington, will explain the position, Already action has been taken in other centres and in Wellington. Mr.- Hall pxplained to a "Star" reporter this mofiv ing that agents were co-operating with the Chamber of Commerce in a joint protest to Parliament, in addition to making representations on their own behalf. It is admitted, says Mr. Hall, that nonresident traders should be liable for in. come tax on business operations in the Dominion, but the agent who merely draws a commission on business resulting from his personal activity and in no way controls his principal's ventures, should not be the person held responsible lot payment of the tax. The position, taken up is that the agent has no more chance than the G-overnment of recovering any amount paid by way of income tax' on' behalf of the non-resident trader, and that being so the agent would not find it profitable to go on paying income ; tax out of commission earned. Even with a good business agency the commission would not stand such a heavy drain on it as would be involved by payment of income tax, and the obvious result would be to compel business men to relinquish otherwise payable agencies. Another point, too, is that the provision made does not affect all' non-resident traders, but only 'those who have agents appointed, rendering an assessment possible. "We are all affected," said Mr. Hall, "and if the amendment is passed in its present form many agents will be driven out oj business."

The following section of the bill indicates the comprehensiveness of the provision as affecting all agents:—"Where an agent, directly or indirectly, whether by sample, price list, negotiation, or otherwise howsoever, sells or disposes of property of his principal, or is instrumental in procuring the sale or disposition thereof (whether t*ia contract for the sale or disposition of the property is made in New Zealand or elsewhere)) the principal shall be deemed to be carrying on business in New Zealand, and the Income derived from such business shall be considered to be derived from New Zealand, and shall be subject to mcoma tax in accordance with the provisions of the Principal Act and this Act, ; and the rirent shall make returns and pay. tax accordingly." A large attendance of Auckland agents is expected at the meeting this evening.

A DUNEDIN PROTEST. (By Telegraph.—Press Association.) DUNEDIN, Monday. At a meeting of the New Zealand Commercial Travellers and Warehousemen's Association, a resolution was passed protesting against the Land and Income Assessment Bill now before the House of Representatives, on the ground that it will hamper trade to a serious extent, and press unduly on the agents of foreign firms, who as a, rule repudiate all such colonial taxes, which will therefore fall on the agents. .