HARSH TAXATION

Auckland Star, Volume LXXV, Issue 153, 30 June 1944, Page 2

HARSH TAXATION

SYSTEM IN DOMINION ROYAL COMMISSION URGED ■ (P.A.) WELLINGTON, Thursday ; "The cabled report of the decision ; of the Canadian Government to sel - up a Roj-al Commission to investigate , and report on taxation gives a further , lead to New Zealand to take up a ■ similar overdue and much-needed step," said the Associated Chambers ; of Commerce of New Zealand, in a ■ statement to-day. i "The subject of taxation falls into , two parts, firstly, the weight of taxa- ; tion, and, secondly, the incidence of ! it. With regard "to the former, in i three years, 1913 to 1915, the approxi- . mate total of all taxes raised on income was £000.000 a year. For the year ended March 31, 1943, income ' taxes collected amounted to £26,000,000 and security taxes to £28,000,000, . a total of £54,000,000. or roughly 100 . times the amount collected annually in 1913 to 1915. "With regard to the incidence of taxation, the last Royal Commission in New Zealand to report on taxation legislation was appointed in 1924, and in the succeeding 20 years there has been a steady piling up of anomalies, due to piecemeal legislation from time to time. These anomalies fall harshly and inequitably on a large body of people, and the position has now been reached where only by a complete investigation of the whole taxation structure by a Royal Commission can any proper and scientific overhaul be effected. "Since 1939 there has been operating a joint taxation committee composed of represenatives of the Associated Chambers of Commerce, the New Zealand Manufacturers' Federation, the New Zealand Farmers' Union, and the New Zealand Federation of Drapers and Allied Retailers," the statement continued. "This committee, at a meeting to-day, drew up a revised list detailing 50 major anomalies in our taxation law which urgently need revision. The list is by no means complete, but when it has been tested and added to it will represent an unanswerable argument in favour of a Royal Commission. "Since the Government frankly admits many of these anomalies while taking no action to remove them —with the exception of its recent commendable granting of a non-taxable reserve for deferred maintenance, together with some minor amendments —a Royal Commission provides the only means of reducing chaos to order. In addition, there is a considerable body of opinion in favour of a Royal Commission investigating the whole subject of pay-as-you-go taxation and bringing down recommendations."