INCOME TAX PAYMENT.

Auckland Star, Volume LII, Issue 24, 28 January 1921, Page 7

INCOME TAX PAYMENT.

|BtrsiN-3SS ME-TS HHJ-'t'ICU JLTTES. OVERDRAFT LIMITS. (By TelesrapU.—Special lo "Star."*) CHRISTCrICRCH, this day. The fact that a larger number of income tax pavers 'will be called upon to pay their tax next month is causing a certain amount of concern in local business circles accentuated by the | action of the banks in fixing a rfgid | lim:t to overdrafts. It is estimated that ! throughout the dominion the total j amount of income tax payable this year Ii- between £5,000,000 and" £6,000.000' A leading business man. in conversation j 'with a "Press"' reporter said that the j most vital question of the hour with , business men was ho=w was the income ! 'ax going to be paid. Business men, I farmers and others had been told by 1 their bankers that a particularly short ; limit had been fixed with regard to ; overdrafts, under one-fifth of the | limit business firms had 'been I -ccustcrmed to receive in the past. Goods • had come forward recently in such large ] quantities that the reserve for the pay--1 ment of income tax -when it was in I liquid form had been more than I swamped by the payment for goods. I Reference was made by the reporter Ito the statement by th<? Prime Minister ! that arrangements would be made probi ably for, the payment of income tax by j instalments. This business man said he i had interviewed the inspector of the T.and and Income Tax Department at Christchurch. who informed him that he had no information on the point and j referred the questioner to the i law on the subject, which clearly states that the sum due in respect of income tax must be paid "in one sum." Apparently this provision of law could be overcome only by an amendment of the Act by Parliament. The President ]of the Chamber of Commerce told him [that at the annual conferences of cha-m----rbers of commerce of the Dominion durI ing the past four years a motion had | been passed, and had been reaffirmed. I asking the Government to set up a Royal Commission to jp> into the question of both direct and indirect taxation. At the latest conference, after afßrmartion of this motion a deputation from the conference waited on Mr. Massey and went thoroughly into the matter with him, emphasis being placed on the difficulties that would be experienced in the payment of income tax owing to the stringent time financially that the Dominion was passing through. Mr. Massey promised to go into the matter, but nothing further had "been heard on the subject.