RETENTION TAX
Provisions Modified (From Our Parliamentary Reporter) WELLINGTON, July 21. Relaxation of the excess profits retention tax was announced in the Budget tonight by the Minister of Finance (Mr Nordmeyer). "Excess retention tax will not be charged where the Commissioner of Inland Revenue is satisfied that the income thus retained by the company is required for necessary development or expansion involving the acquisition of buildings, plant, or other productive equipment,” he said. If the expenditure tor these purposes has not been incurred in the year concerned, the company would be given up to three years in which to show that the profits retained had been so expended, or had been definitely committed for those purposes. “If the development or expansion is not proceeded with or definitely committed within that time the liability for excess retention tax will remain, but opportunity will be given for the declaration of sumcient dividends to avoid the liability. Provision will be made for appeal against the Commissioner’s decision,” Mr Nordmeyer said.
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Press, Volume XCIX, Issue 29263, 22 July 1960, Page 13
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167RETENTION TAX Press, Volume XCIX, Issue 29263, 22 July 1960, Page 13
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