HOW MUCH?

Auckland Star, Volume LXXI, Issue 236, 4 October 1940, Page 3

HOW MUCH?

WAR PROFITS.

MINISTER'S HOPE.

BILL'S MAJOR FEATURES.

" I hope there will be no revenue under the legislation. That will mean that nobody is trying to profit out of the war," said the Minister of Finance, Mr. Nash, in the House of Representatives yesterday when giving a brief outline of the major features of the Excess Profits Bill, which was introduced by GovernorGeneral's message. The remark was in reply to a question asked by Mr. Forbes

(National, Hurunui), who wanted to know how much the Minister estimated he would get out of this tax.

In reply to the Leader of the Opposition, Mr. Hamilton, Mr. Nash eaid that in order that members of the House and others interested could have time to study the measure, the second reading debate would not be taken until next week, possibly on Tuesday. The bill contained nine clauses, and there were three pages of explanatory memoranda.

" It is proposed," said Mr. Nash, " to take GO per cent of excess profits after what has been defined as excess profits, and after social security charge, national security tax and income tax have been deducted from excess profits. The. residue is divided 60-40 between the profitmaker and the Government". Mr. Forbes: Who gets the 40 per cent? The State's Share. Mr. Nash: The State gets the 60 per cent. In reply to a question from Mr. Poison (National, Stratford), tbe Minister eaid that the farmer's position had been taken into consideration.

The Minister outlined the definitions of standard income as given in the memorandum. He said that there would be no excess profits tax on an income below £500.

Mr. Hamilton: What year does this start?

Mr. Nash: It will be assessed during the year commencing April, 1940. It does not become assessable until after April, 1941, and will not be payable until February, 1942.

"This is a very simple procedure," continued the Minister. "The Commissioner of Taxes assessee what is called the excess profits tax, and a committee is then set up and is given power to determine what is excese profit if a taxpayer appeals. It is limited only in two way*. It cannot assess profit lower than that admitted by the taxpayer, or higher than that assessed 'by the Commissioner of Taxes. The committee of three comprises judicial and other competent minds. It will have no power to interfere with an assessment of normal income tax. The Commissioner determines what ie normal profit of a company the same as he determines it to-day." The Farmers' Part. Mr. Doidge (National, Tauranga): Are the farmers involved? The Minister: Everyone k. Mr. Doidge: If he produces more as he is asked to, he will get more. The Minister: He will be allowed for personal exertion.

Mr. Kidd (National, Waitaki) mentioned the case of a fanner, who, as a result of increased production, had made a profit of £150. Would he have to pay?

The Minister: He is miles outside it. He has to show a £.300 profit before the tax applies.— (Parliamentary Reporter.)