TAX LEGISLATION.

Auckland Star, Volume LX, Issue 221, 18 September 1929, Page 18

TAX LEGISLATION.

LAND TAXES AMENDED. t HIGHER MORTGAGE EXEMPTION. DETAILS Or THE BILL. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. The taxing bills introduced by Governor's Message yesterday show that the in-

come" tax remains at the existing rates, and land tax is also unchanged, except for a supertax on agricultural lands of £14,000 unimproved value and over. On these areas the bill provides taxation as follows:—

Where the unimproved value of farm lands in respect of which the special land tax is payable exceeds £14,000, but does not exceed £16,500, the rate of the special land tax shall be 1 per cent of so-much of the ordinary land tax payable as is apportioned to such farm lands for every £50 or part of £50 of such unimproved value in excess of £14,000.

Where the unimproved value of farm lands in respect of which the special land tax is payable exceeds £10,500 -the rate of special land tax shall be 50 per' cent of so much of the ordinary land tax payable as is apportioned to such farm lands, increased by 1 per cent for every £270 or part of £270 of such unimproved value in excess of £10,500, but so that in no case shall the special land tax exceed 100 per cent of the amount of ordinary land tax in any case where by virtue of any special provisions relating thereto in the Land and Income Tax Act, 1923, the amount of the ordinary land tax payable is either greater or less than the amount calculated in accordance with the ordinary land tax schedule, the special land tax shall be computed by reference to the amount of land tax that is actually payable in such case. £7500 Instead of £5000. Mortgage exemption shows an important change from the original Budget proposals, being £7500 instead of £5000 where the total unimproved value does not exceed £7500, and where it exceeds the latter sum the exemption, is £7500, diminished at the rate of £1 for every £1 of that excess, so as to leave no deduction for mortgages if the unimproved value amounts to or exceeds £15,000.'

Income tax is to be payable on incomes derived from land if the taxpayer owns an area over £14,000 unimproved value, but a special clause provides in this connection that there shall be deducted from the assessed income tax the amount of land tax paid, and the residue, if any, is to be the amount of income tax payable. Income derived from the use or occupation of agricultural land is otherwise exempt from taxation. Cases of Hardship. Clause 3 of the Amending Act applies to the special land tax, and empowers the appointment'of.a commission, under, the Commissions of Inquiry Act. It proceeds: "If in any such case the commission reports that in its opinion the payment of special land tax, by reason of the financial position of the taxpayer," has entailed or would entail a serious hardship to him, the. Commissioner of Taxes may, in accordance with the, report of the commission and without further authority than this section, refund the whole or any part of the special land tax so paid, or release the taxpayer wholly or in part from his liability to pay such special land tax." , The special land tax is not payable on any lands owned by or in trust for any society or institution established exclusively for charitable, educational, religious or scientific purposes of a public nature, and not carried on for private pecuniary profit. Land tax is not to be levied on lands used -to provide access to railways, tramways, yards or buildings.

The Public Trustee and the general manager of the State Fire Insurance Office are *to be held liable in their corporate capacity for land tax.

Where mortgagees are in possession of land solely for the purpose of furthering the realisation of security they ore to be assessed separately in respect of this interest for five years of the assessment following their entering into possession. The Public Trustee, as mortgagee in possession, is also subject to the provisions of this clause. Live Stock Dealing. Clause 13 of the Amending Act contains special provision for assessing income from the business of. dealing in live stock. The taxpayer may with the concurrence of the Commissioner, fix a standard value in respect of any. class of live stock. In any case where the standard value has been so fixed'cthe tax--payer may adopt or the Commissioner may require the adoption of the true value in lieu of the standard value, or the taxpayer may with the concurrence of the Commissioner adopt another standard value in lieu of the standard value originally fixed. In a sale or disposition by will, gift, etc., the assessment is to be on the actual realisation prices or market value. If-the value of any live stock on its sale or other disposition exceeds its value at the beginning of the income year, as.fixed by the taxpayer, as already described, the difference shall be deemed to be assessable income for that year. '?s'.• Income Tax Exemptions. The £50 exemption from taxable in- ' come in respect of dependent children or ! grandchildren up to the age of 18 years - is the subject of a machinery clause to ' allow a proportion of the exemption for each month of the income tax year ,' before the child's 18th "birthday, and a similar allowance where a dependent child dies within the income tax period. The exemption may be continued beyond the age of 18 if the Tax Com- \ missioner is satisfied that such child or c grandchild is suffering from any per- c manent mental or physical infirmity and I is thereby permanently incapacitated x from earning his or her own living ° °' f