BRITAIN'S FINANCE.

Auckland Star, Volume XLV, Issue 167, 15 July 1914, Page 5

BRITAIN'S FINANCE.

■ ■ I THE OVERSEAS INCOMES. COLONIALS NOT TAXED. OBJECTIONS TO THE BILL. (By Cable.-Press Association.—OpTrichM I I (Received 10.1.3 a.m.) \ ! LONDON, duly 14. [ | The Hifth Commissioners for Au.-tra-I , lia and New Zealand are satisfied with j >!:-. Lloyd George's assurances that he! will amend Clause T> of the Income l'a\ j Hill -o a- to exempt colonials not per- ' ( iiiiiiu'iilly resident in the United King- ' doin from taxation, leaving the Income! I Tax law as affecting them unaltered. I Sir John Simon ( Attorney-General i, I . in the House of Commons Aiid that the 1 Chancellor had prepared amendments I t which would vary the effect of Clause 11 . and make it-clear that only those domi-1 • ciled in Great Britain were included in i ! the clause. 1 EFFECT ON LOANS. During the discussion on the amend Intent moved hy Mr. VYorthington Evans. .'tn exempt from taxation in (ircut l?riI | tain income derived from .-..lnitial investment reinvested in Ihe colonies. | 'I which was defeated by -JUS tn IDTJ ';Mr. Kvans -aid that Mr. Lined George I ' 'expected In realise £1.000.00(1 from those !.'-. aping payment ul" lhc mc.me lax [..wing l'» arrangements under which they jI. I'l lh,- iitciuc arising front investments n1,,,,;., lln I.- reinvest "d abroad. Ili-j ' ameiidiueiils exempted money invested jin the clonics. ..f which tlie proceeds I were all..wed '.. remain ahruad for lhc l ! lu-m lil ni the colonies. 'Ihe union. Intent | I did nol I'tTecl c.lnnial Intins because lhc! I jdii i.lends were seni to Itiiltiiu. , ! 'lh« clause as drawn did volt.is the j rich man win. took the trouble tv .--ape. Mr. I'lail- detailed several methods nf !|„,.-ii.!c I'vu-iun. im-ludina tbe format ion I. if small limited liability companies 'which did nut declare dividends. Mr. iLlovil George'- clnii-e. however, would i-cri'„u.-lv atrect v large class „f .ulnnial | linanciers on their return tn the Mother- | land There were many planters, farm ir- sind ranchers returning to Urituin j »ln» uiade large im.lines on a relatively I-mall capilal. hut who used a great proportion <>f their income! for the extension <>f Iheir business iv the Dominions mid colonies, yel they witJ to be taxed as if entitled to spend the whole of Iheir , incomes in Britain; The Dominions . were already lewini an income lax • upon the incline- wlif-h Mi. 1.1.cul George • intended to plunder. I WITHIN THE EMPIRE. Mr. Evan* fitrtl/er contemlcd that it was highly desirible thai individuals • should be encouraged lo iincsl in estates I within the Umpire, i Mr. I-'. I assd (St. Pancra.-i urged the exemption of the British Kmpire. quoting I as a precedent thf Finance Act of IS-li). Other speaker! emphasised the hard- I ships which woild fall upon insurance companies. , | Sir Arclubald/w illiamson said that Mr! Lloyd George r>n the ri-k ..f .-hiking a I good many |>c*p|e, conducting .. Icgiti male business, who left their mnncv. abroad for tbf purpose ol cnrriinjj on lhat business. Mr. P. A.'Molteno declared (hat the essential iialan- of (he proposal was to tax property in llir jurisdiction of an- • other (Jovcninient. Thai was v delicate proceed in;.' |[ r was afraid it would muse considerable ill will in the colonic-. AN EXPERIMENTAL CLAUSE. | Mr. I-".. G. Prelyinan said lhc clause I was very i-omplicated. It might involve •Brilain iv scrims complications with the colonies. Tie foreigner escaped the double tax. bit the colonial only escaped \vhi?c still a resident iv the colonies. Sir .John Simon held that if it could be done willi reasonable effect i wness. there was no sort of incomes which more obviously ought to he taxed than income from inve.tm-nts abroad, which w.-s kept abroad becaiw the owners did not need." to spend it in Britain. Sir John Simon added that the Government propos«d to nuke it clear that as it was now joing t> tux foreign incomes • from year to year, though not remitted home, the taxpayer was not also liable to , be taxed again wlm the accumulations • were remittal. The clause was an experiment, but thr Government denied lhat the clause was devised ii order to favour for- , eigners. nor would the insurance comi panics suffer. After the division on Mr. Evans' amendment. Mr. Lbyd George moved an amendment providiig that companies and - persons who had Yen accumulating in--1 comes ahrojd in past years should start i with a clean sheet. Several members of both parties said . the clause was abstrd. badly drawn and doubtful, but the tebate was automatically ended by thn closured amendment being carried by 271 votes to 100. The closure was ipplied to clauses six. seven, and eight wiliout discussion.