DEPRECIATION RATES

Press, Volume XCVI, Issue 28385, 18 September 1957, Page 16

DEPRECIATION RATES

“ Vital Questions ” Unresolved

(New Zeatona Preu AMoetattonl WELLINGTON, Sept 17. Saturday’s announcement by the Minister of Finance (Mr J. T. Watts) that a new scale of depreciation .rates for income tax purposes had been recommended to the Commissioner of Inland Revenue by a special working party representing his department and commerce and industry, suggested some form of common agreement on the subject, _ said the chairman of the Joint Taxation Vigilance Committee (Mr L, V. Phillips) today.

“It is correct that at the request of the Commissioner, following representations to the Minister, two members of my committee which is representative of a number of the national business organisations in New Zealand, met senior officers of the department to study proposattefor a new schedule of depreciation rates,” said Mr Phillips. "While these discussions have been worthwhile in many respects, it is not correct to suggest that any agreement was reached on the principle or the details of these proposals, and ' the. committee has reserved a number of important questions for further discussion with the Minister.

“The principal issue which will be raised is the vital question of accelerated obsolescence, which is a major factor affecting presentday business,” he said.