AMENDMENTS TO TAXATION

Press, Volume LXXXI, Issue 24750, 15 December 1945, Page 8

AMENDMENTS TO TAXATION

* REPRESENTATIONS OF MANUFACTURERS

The opinion that the representations of the Manufacturers’ Federation had resulted in some helpful amendments to the income tax law was expressed by Mr S. L, Wright at the meeting of the Canterbury Manufacturers’ Association’s council yesterday. Though several members of the council expressed doubt whether much had been achieved—one described it as “microscopical”—satisfaction with the representations’ outcome was expressed by the majority, and a resolution of appreciation of the federation taxation committee’s efforts was passed Mr Wright said that since the last meeting of the council the Minister of Finance (the Hon. W. Nash) and the Commissioner of Taxes had met representatives of the federation. He thought the discussions had had a considerable effect on the clauses of the Land and Income Tax Amendment Act presented to Parliament two days later The amendment, he said, dealt with extra depreciation on new premises and plant, increasing the special depreciation allowance to 30 per cent, and being applicable to any .premises or plant installed on or after April 1 ‘his year, but. not later than March 31, 1943. The amendment also authorised the Commissioner to allow as a deduction Irom assessable income expenditure with scientific research by a taxpayer in his business. The Commissioner also had authority to alldw as a deduction expenditure on the purchase of patent rights used by him in the production of his income, and expenditure connected with the grant, maintenance or extension of the patent used by him. A useful clause was also provided regarding allowances for repairs and alterations. There were other matters. Mr Wright said, where relief might eventually be given, and if the Minister had heard the representations earlier, as he should have done, these matters could nave been dealt with before the session of Parliament ended. The federation proposed to take these questions cess Wlth thC Minister during fhe re-