Death Duties

Press, Volume XCVIII, Issue 28835, 4 March 1959, Page 9

Death Duties

Sir, —Would you supply the following information on death duties in conjunction with the new tax ruling on depreciation for new implements Assuming a farmer has a net taxable yearly income of £2OOO, which he spends on new implements for five years —total £lO,OOO. In the sixth year the property and the implements are assessed for death duties. Assuming, again, the implements are resold for £lO.OOO, the taxable income for that year would be £lO,OOO, plus the farm income, £2000; total, £12,000. (1) Would £12,000 be assessed for death duties? (2) Would the £ 12,000 be taxable even though £lO,OOO has already been taxed without the depreciation being claimed? (3) If so, would death duties, social security and income tax each be assessed on the £12,000? —Yours, etc., TRAMS.

February 23, 1959. [The District Commissioner of Taxes (Mr N. A. Rountree) said that it is not the practice of the department to give decisions on hypothetical cases.]

Sir.—What right had Mr Nash and Mr Nordmeyer to extract such gavage. death duties after promising no extra taxes? It is

just robbing Peter to pay Paul. What sense is there in producing for the Government when taxed so heavily? There is no incentive to do. so. This Labour Government is heading to put New Zealand bankrupt. A Labour Government will never suit New Zealand. The more we produce the heavier the taxes.—Yours, etc., „ , „ facts. March 3, 1959.

Sir.—lt is odd that quite intelligent people cannot distinguish between property and cash. My husband is 77 and he owns certain dusty acres, sheep dropping m value, implements shattered by the stony land, and the car which our isolation makes necessary. We have no money and under present conditions can make none. All we ever made went in improvements. For the above property I have worked and denied myself more than anyone I know. Yet when mv husband dies I must find £9OOO in money for death duties, or else walk out and become a charge on the State. The thought is unbearable. Who will lend money on land under present conditions? Who would even buy it at anything near Government valuation?—Yours, etc. >ir HAD IT. March 2, 1959.