DEATH DUTIES ON FARMS

Press, Volume XCI, Issue 27603, 9 March 1955, Page 14

DEATH DUTIES ON FARMS

NEW VALUATIONS CRITICISED

“ DISINHERITANCE IN ANOTHER FORM” (New Zealand Press Association) HAWERA, March 8.

High death duties, combined with artificially high values being placed cn land by Government valuers, means the virtual disinheritance for farmers’ sons, said members of the South Taranaki provincial executive of Federated Farmers today. Afer recent revaluations in the Waimate West County had been described, members said that a son inheriting an average dairy farm with the usual stock, chattels, and assets would have to find as much as £5O an acre for estate and succession duties and the extra income tax owing as a result of the stock valuation. ‘‘Two deaths in a family within a few years would result in the situation getting completely out of hand,” said Mr G. K. Tarrant (Manaia). “In effect the heirs to the estate are virtually buying it back from the Government. It wouldn’t be long before they would be forced to ask the Government to take the farm over and then try to lease it back.” The chairman (Mr E. W. McCallum), who is also chairman of the federation’s Dominion land committee, said that although the present system of valuation had its faults it was better than the old system, in which value was calculated on the productive capacity of the land. “If we are getting fantastic valuations under the present system it is because it is not being administered properly,” he said. Mr J. J. Parsons (Whenuakura) said that, in conjunction with the land valuations, death duties were far too high. “Thev are paralysing,” he said. “It is just disinheritance in another form.”