NO REDUCTION

Auckland Star, Volume LXXV, Issue 284, 30 November 1944, Page 7

NO REDUCTION

DOMINION TAXATION REMOVAL OF SOME ANOMALIES By Telegraph—Parliamentary Reporter WELLINGTON, this day. "It does not provide for any tax reduction because we still have to pay for the war, but it does provide for the removal of some anomalies in the existing law," stated the Minister of Finance, Mr. Nash, in the House of Representatives last night when explaining the purpose of the Land and Income Tax Amendment Bill, which was introduced lay Governor-General's message. The Leader of the Opposition, Mr. Holland, had expressed the hope that, in view of the very large surplus last year, the Minister was now able to announce the reduction in taxation that the people have been looking forward to for so long."

The bill, a short measure of nine clauses, makes some provision in connection with the decentralisation of the administration of the Land and Income Tax Department, authority being given for the appointment of a second depqty-Commissioner of Taxes, and the appointment of superintendents. The definition of "charitable purposes" is extended to include every charitable purpose, whether it relates to the relief of poverty, the advancement of education or religion, or any other matter beneficial to the community. Deferred Maintenance The personal allowance of absentees is increased from £50 to £200. Provision is made for deductions from assessable income for deferred maintenance. Deferred maintenance is defined as such maintenance of assets used by the taxpayer in the production of his assessable income as is nccessary by reason of the fact that the taxpayer has been prevented from maintaining those assets in a proper and reasonable manner by war conditions, whether they arose before or after the termination of the war. Another clause -provides that interest or discount on income tax paid in advance is to be treated as assessable income. Authority is given for the refund of excess tax payments within four years of the year of the assessment. The Minister said that this would place taxpayers in the same position as the Department. The Leader of the Opposition: There was merit in what we suggested after all. Mr. Nash said that if the Government had put in all the suggestions made by the Opposition, the country would find itself in emergency periods all the time, like it was in 1934. j The bill was read a first time.