Tax Deduction For School Fees Favoured
The cost of educating a child should be deductible for tax purposes, with up to £ 100 a year allowed for each child, the legislative and education committee said in a report adopted by the Canterbury Chamber of Commerce council last evening. The committee was reporting on an item in the order of reference of the Commission on Education dealing with the place of private contributions towards expenditure on education. ‘The Associated Chambers of Commerce reply to this chamber’s recommendation that import control on school books and other equipment should be removed was that it was in favour of the general abandonment of import control as a system, and because of this would not favour any representations for the relief of any particular section of the community.” said Mr W. E. Truman, the committee’s chairman. “The committee does not suoscribe to that view.” Considering the desirability of deductions for income tax purposes of payments for the education of a taxpayer’s child, the committee reported that in practice this would apply particularly to private school fees. “It is understood that in Australia the taxpayer is allowed, in addition to a deduction for each dependent child comparable to that in this country, to deduct for tax purposes amounts paid for expenses incurred by him in the full-time education at school, college or university of any child under 2-1 up to £lOO a year for each child.
“It was felt in view of the valuable contribution being made to education in New Zealand by the various private schools that a deduction similar to that allowed in Australia was desirable. It was pointed out that the private schools were accepting a substantial proportion of the country's educational needs.”
After reviewing the English legislation allowing grants for technical education or scientific research as deductible items, Mr Truman said the committee thought action on similar lines in New Zealand would be a substantial encouragement to firms making a direct contribution to technical education and scientific research in the fields in which they were interested; and that it would be of advantage to the community. It recommended Associated Chambers of Commerce to make submissions to the Commission
on Education for tax exemptions on the lines of the English system. The national body was also asked to submit to the commission a request for exemption of educational bequests from death duties.
“At present gifts made by a person during his lifetime enjoy an exemption from gift duty, but bequests attract full death duties,” Mr Truman said.
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Press, Volume XCIX, Issue 29299, 2 September 1960, Page 13
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423Tax Deduction For School Fees Favoured Press, Volume XCIX, Issue 29299, 2 September 1960, Page 13
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