COLLECTION OF TAXES

Press, Volume LXXIII, Issue 22243, 6 November 1937, Page 18

COLLECTION OF TAXES

FICTITIOUS RETURNS ALLEGED

WRITING DOWN OF i STOCKS DEPARTMENTAL VOTE PASSED [From Our Parliamentary Reporter.] WELLINGTON, November 5. The activities of the Land and Income Tax Department in collecting various forms of taxation for the Government were the subject of comment during discussion on the Departmental Estimates in the House of Representatives to-day. Mr S. G. Holland (National, Christchurch North) drew attention to the vote for £I3OO for law costs and compared it with an expenditure of £32 out of a vote of £540 for the previous year. He said it appeared that provision was to be made for the issue of 2000 summonses for the recovery of the employment charge, but the increase in the law costs seemed somewhat heavy.

“The employment charge was previously collected by another department,” said the Minister for Finance (.the Hon. W. Nash). “It is now collected by the Land and Income Tax Department,” f “One must compliment the department on the vigour with which if is prosecuting those guilty of frauds on the Employment Promotion Fund,” said Dr. D. G. McMillan (Government, Dunedin West), "but one could hope that the same vigour would be shown in dealing with tnose who deliberately falsify their income tax returns. If a closer check were kept on this particular aspect and some people taken to Court it would nave a very salutary effect. Companies are also in the habit of making fictitious returns for the purpose of income tax. One of the favourite methods is to write down the value of stocks.

“If departmental inspectors looked at the fire insurances of some companies they would find that the value of the stocks is often two or three times the amount of the figure shown in the income tax return.” Mr W. J. Broadfoot (National, Waitomo) said there had been an increase of 41 in the staff of the department since last year. The officers of the department, of course, were the “storm troopers” of the Government, and as the demand for taxation revenue grew the staff would probably continue to increase. Perhaps the member for Dunedin West might even join, the staff in an endeavour to catch a lew malefactors. , „ Mr W. P. Endean (National, Parnell) said the total vote of £161,870 was more than double what it was a few years ago. There appeared to be opportunity for using the pruning knife on i departmental costs. Alter some further discussion the vote was passed.