THE NEW TAXATION.

Auckland Star, Volume LI, Issue 242, 9 October 1920, Page 7

THE NEW TAXATION.

PUBLIC TRUST INCLUDED. PUBLIC UTILITIES EXEMPT(By Telegraph.— Parliamentary Reporter) WELLINGTON, this day. When the Finance Minister introduced a number of amendments to the Land and Income Tax Bill on Tuesday, one point about a revision of clause 14 was not appreciated by those who spoke during the second reading, nor did Mr. Massey mention the matter, but it appears on close examination to mean that the Government has receded from its intention to levy income tax on trading undertakings owned by public bodies. To ascertain the real meaning of the amendment it has to be read in conjunction with the bill as well as the Finance Act, 1916. To put the matter beyond doubt your correspondent asked Mr. Massey what is the Government's intention. He replied that local bodies' undertakings will not be taxed. "When I carefully looked into it," he remarked, "I decided that it was not worth while levying income tax on these undertaking's. as they do not make big profits and are run solely for the benefit of ratepayers they are better left alone.' It appears that the clause abolishing exemption was included by mistake, and it will be omitted. In its place there is to be substituted a new sub-clause, which says: "The income, other than income received in trust, of a local authority or any public authority other than the" Public Trustee, shall be exempt from income tax.