"HE'S ALL SMILES."

Auckland Star, Volume LXVII, Issue 233, 1 October 1936, Page 16

"HE'S ALL SMILES."

GLUMMEST MINISTER. LAND AND INCOME BILLS. HOUSE ACCORDS URGENCY. (By Telegraph.—Parliamentary Reporter.) WELLINGTON', this day. Urgency was accorded the passing of the Land and Income Tax (Annual) Bill and the Land and Income Tax Amendment Bill in the House of Representatives to-day, and when the House rose at 11.30 p.m. both bills were passed. An endeavour was made by the Opposition to have a hardship clause inserted in the second of these measures, but it was defeated. Mr. A. Hamilton (National, Wallace), speaking on the annual bill, said that the high company tax would have a damaging effect 011 the stability of companies, as it would force them to use borrowed money instead of share capital, which was an unsound method of finance. The Minister would find that under this tax it would be impossible for industry to develop. The third and last clause was carried ■bv 37 votes to 15. Immediately afterwards the Opposition forced the House to divide on the schedule, which was retained bv 36 to 14. "Minority Legislation."

The House then proceeded to discuss the Land and Income Tax Amendment Bill in Committee. Mr. W. J. Broadfoot (National, Waitomo) described the measure as minority legislation, which in the past had always proved to be undesirable. He thought that in tlie field of company taxation there was an opportunity to bring equity to the small investor. The system of company taxation in Britain, he had always held, was much fairer. The Minister would be well advised to let these small investors invest and tax them, on their Incomes from their shareholding. , Mr. J. G. Coates (National, Kaipara) criticised the Minister for failing to state when the provision for the payment of taxation by instalments would operate. He said tliat tlie Government, in levying taxation, should do so in a manner that the country would understand. "The Minister of Finance —this Minister of Taxation—is the glummest occupant of that- office the country lias seen for many years," Mr. Coates added. A Government Member: He's all smiles. "It is forced. He is a nervous man," rejoined Mr. Coates. "He knows he will get it when he has to face the troops. The Minister has not taken into account the representations made to him by earnest and sincere people—leaving members of Parliament out of it altogether—who arc going to be injuriously affected." The short title of the bill was passed without division and the next five clauses were passed without discussion. The Opposition challenged clause 7, which provides that the unemployment tax shall not be deductable from assessable income, but it was retained by 38 votes to 15. The new clause, providing for the payment of income tax by instalments, was also challenged by- the Opposition, but it was retained by a ; "similar vote. Mr. Coates' Resolutions. Mr.: Coates moved that the following new clause be inserted: — "(1) The Governor-General-iri-Council may appoint a commission under the Commissions of Inquiry Act, 1908, to inquire into and report as to any cases of hardship that may arise from the imposition of special land tax.

i "(2) If in any such case tlie commission appointed as aforesaid reports that in its opinion the payment of the special land tax has entailed or would, on any fair and reasonable grounds whatsoever, entail serious hardship to the taxpayer 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 amendment was lost by 38 to 15. Two final statements by the Minister of Finance, Mr. Nash, on the third reading of the amendment bill provided some reassurance to critics. Mr. Nash declared that if hardship were, experienced, as was suggested in connection with the graduated land tax in particular, and it was found unjust to press immediately for payment, such cases would be considered with a view to extending relief. In other words, pressure would not be exercised. Mr. Broadfoot: Take a lien. The Minister did not concur that this suggestion regarding apprehension that the new authority to collect income tax by instalments might cause the Department to demand a large proportion before the usual date. He said it was not proposed to introduce this system during the current year. Therefore income tax in respect to incomes to March 31 last would be asked for in February next and not before.