INCOME-TAX PENALTY

Press, Volume CIV, Issue 30678, 18 February 1965, Page 6

INCOME-TAX PENALTY

League Urges Reduction

“As the Government has again refused to allow trading banks to extend credit to pay'income tax, it should now change the penalty rate charged by the Inland Revenue Department to bring it into line with normal bank overdraft charges of 6 per cent," said Mr V. F. Cracknell, the leader of the New Zealand Social Credit Political League, in a supplied statement.

“This should apply over the term of repayment only to the overdue amount involved. After all, the present 10 per cent penalty clause applies immediately after due date on the whole amount due, so that this could mean 110 per cent on annual terms if paid only a month late,” he said. “This situation is unfair and unnecessary. Production has increased, overseas incomes are high, and Mr Holyoake talks of prosperity,” he said. “But costs are racing ahead of these items all the time, and yet here is a classic case where the Government can help to reduce costs and refuses to do so. Or is this just another subtle way of collecting more income tax?

“I see no adequate reason for this imposition, and the Government has given none. I would welcome Mr Holyoake or Mr Lake making a statement on this important issue, which affects so many people in all walks of life,” said Mr Cracknell.

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