FUNDS SEIZED

Auckland Star, Volume LXXV, Issue 141, 16 June 1944, Page 5

FUNDS SEIZED

PRIVATE DEPOSITS

Australian Tax Department's Act Rouses Storm N.Z.P.A. Special Correspondent Rec. noon. SYDNEY, this day. The disclosure that Commonwealth taxation officials have seized the bank deposits of people believed to have defrauded the Taxation Department has aroused a storm of protest throughout Australia. An authoritative warning has been given that such interference with private bank accounts will increase hoarding. The manager of one of Australia's largest banking companies says that already at least £100,000,000 in currency is being hoarded here. "No one has sympathy for the shirker of taxation who brings additional burdens on to honest taxpayers, but surely taxation evasion should be proved in Court," said the deputy-Leader of the New South Wales Opposition, Mr. Mair. "An important aspect of this matter is whether it is not contrary to British principles for the Government, as creditor, to be able to satisfy a claim from a debtor's assets without a Court order," said the president of the Constitutional Association, Dr. Frank Louat. A leading bank manager said: "It is impossible to compute the amount of cash being hoarded by people afraid to put their money in banks. There is three times as much money in circulation in Australia now as before the war. People are carrying it around in their pockets, others are burying monev in jam tins or putting it up the chimney." Safe deposit managers report an enormous increase during the past two years in the demand for private boxes. Australian taxation officials have power to investigate the contents of safe deposit boxes, but not to seize the contents. Government's Attitude The Government had no intention of reviewing the powers of the taxation authorities, said the Federal Treasurer, Mr. Chifley. He was commenting on the criticism of the seizure by the Taxation Department of money in private bank accounts of people suspected of tax defaults. Mr. Chifley said the powers of the Taxation Commissioner had been the same for 25 years, and he saw no reason to interfere with x them. The power to seize private funds to meet tax assessments was frequently used. '

The Taxation Department considered this action necessary to prevent money alleged to be owing to the Department from being disposed of during protracted Court litigation. The taxpayer had the right of appeal to the Court for repayment of money wrongfully retained.