P.A.Y.E. Taxation Said To Be Lay-By System

Press, Volume CII, Issue 30269, 23 October 1963, Page 16

P.A.Y.E. Taxation Said To Be Lay-By System

The whole name P.A.Y.K. was wrong. Mid Mr R. H. Stewart, the immediate past president of the New Zealand Manufacturers’ Federation, at a meeting of the Canterbury Manufacturers’ Association council. “It is not pay as you earn,” he said. “It is pay before you earn.” Mr W. G Quirk said it was wrong that certain oomparties should be taxed on a provisional basis and others be exempted. “It is just that the Income Tax Department decided to get in on the layby system. ” he said. The association was discussing what it regarded as an unfair anomaly, that companies that had been incorporated since July 26. 1967. had to pay provisional tax. while those incorporated before that date, had only to pay income tax on actual profits on the old style. Mr Quirk said he felt that one of the canons of taxation was that taxation should be equitable. “We see that a company is at a disadvantage when it has to pay provisional tax, compared with one that does not,” he said. “NonP.A.YJI. taxpaying companies have a certain good will opened to them by an accident of birth. I think that is something we should comment on.”

Mr Quirk said that nonprovietonal taxpaying companies had goodwill attached to them, that became profitable if. cr, when the companies came up for sale. This would also apply to such

companies if they were ia Uauidation. Mr W. A. Baocand said that the Inland Revenue Department took the money from Proviatonal taxpaying companirs 12 months in advance. He suggested that provisional tex should be set on average of the last three yeare’ income. But to set it on the basis of the previous year, where there might have been many fluctuations in the income did not work out night 3bt &U. The president. Mr R. G. Pearce, said that the committee on PA.YX. tax set up by the Government was looking et the question on self-employed people. be they manufacturers, farmers or taxpayers. He said the New Zealand Manufacturers’ Federation had been asked to make Mibmissions to the committee which was recently appointed by the Minister of Finance to make recommendations to the Government on certain aspects of the proviaiomal taxation system. He called far recommendations to the federation to be put to the committee. The association adopted a resolution that these comments be summarised and forwarded to the federation council for incorporation ia their meetings.

Hungarian rfiorthand writers won the first two places at a world competition held in Prague recently. One wrote 480 syllables a minute. —Reuter.