HOW TO ASSESS IT?

Dominion, Volume 4, Issue 1225, 6 September 1911, Page 8

HOW TO ASSESS IT?

LAND AND INCOME. , CHAMBER OF COMMERCE OX THE AMENDING BILL. NON-RESIDENT TRADERS. The Land and Income Assessment Amendment Bill was discussed last evening at a special meeting cf tho Chamber of Commerce and of business men affeoted. There wero about fifty present. The chair was occupied by Mr. H. C. Tewsley, president cf the chamber. Tho chairman staled that tho meeting had been called by commercial men, who felt that some of the clauses in the Bill would bear heavily on them. The main boiic of contention was in regard to tho clause in reference to agents for nonresident, traders. This clause reads:— Where an agent, directly or indirectly, whether by sample, prict- list, negotiation, or otherwise howsoever, sells or disposes of propert.v of his principal, or is instrumental in procuring the sale or disposition thereof ■ (whether the contract for the sale or disposition of the property is made in New Zealand or elsewhere), the principal shall be deemed to be carrying on business in New Zealand, and the income derived from such business shall bo.considered to be derived from New Zealand, and shall be subject to income tax in accordance with thu provisions of the principal Act aud - this Act; and the agent shall make returns aud pay tax accordingly. Many (said Jlr. Tewslfljv felt that they should not bo called upon to guaranleo the tax on the income of those they represented. Whatever they decided, however, they could not wipe out the tax oulircly. /i'here must bo- an imposition of sonis kind. In reply to a remark bv a delegate. Mr. lews!«y-stated that, the merchants were pretty well in the soup as it was." they had to face the tax. It was the voice of those who claimed that they were bsiug unfairly treated which they wished to hear. As, lor himself.and his company, they had to boar income tax on all transactions that passed through their books, and had to pay income tax on all the agencies which they controlled. Mr. Hill 'was of opinion that they should know the feeling of the merchants on tho Bill. Mr. Hyslop moved :-"That. to make agonic collcctura o* laxe.- is ah auiist " the prerogative of freedom, and tends to loner tho riioral standard of the community." Mr. Dawspn seconded. Mr. T). Nathan stated that he had nevei known indent ogniis to be so backward. In this • instance they must surelvhave either a very strong or a very weak case. Ho liml read :Im: clause., ami'did not see how it pressed so very heavily. Tbcv wero not asked to pay any mors than the tax on their New Zealand business. It was not many years since this very clause had been the law of tho lane). Commission agents were only called upon to pay the same (ax as other established industries. He could not see why people, established here, should pay the taxes which they di'l pay, at.d be ojjpu to be assailed by competition from others who had not to pay the same taxes. He did not tee that one section of the community should be penalised because the original Act had lx?en badly drawn. They only asked that their competitors should pay the same as they (the local merchants) did. They did not ask that they should pay more. It seemed to him that tho resolution bsforo the meeting was more fitted for a debating society than a meeting of business men. As things stood, ho was in favour of the clause jeing brought into the Act in such a way :hat it should not be avoided. It had' been avoided under the old Act. Mr. W. G. Duthie remarked that agents had enough to do to .pay the tax on the profit in New Zealand without the addition of the profit of tho English merchant on the goods which he ships to New Zealand. (Hear, hear.) It was accepted in New Zealand that the English manufacturer would not pay tho tax, and this would make the agent liable. Tho merchants had enough taxes to pay without paying income tax for'the British manufacturer. Mr. M'Lellan expressed the opinion that the British manufacturer could get out of all the trouble by simply selling the goods.. Tho agent then became the merchant. Mr. W. J. Jack thought that that would revolutionise business completely. The chairman: "It is quite a common proceeding." Continuing Mr. Jack stated that he thought that merchants, hero wero entitled to tbo same, consideration as outsiders who came here for tho purpose of business. As it was, agents Irom other countries came here and did not pay the taxes, which ethers had to pay. These people should be put on the same footing as local merchants. In reply Mr. Hyslop stated that the rosoliKioH.s embodied more than was implied by Mr. Nathan. ■ Under this Billagents, merchants, and representatives had to comply with the clauses. None' of those resident here could escape the tax J'he peripatetic traveller had nothing to do with them—that was the work of tho Customs. The Dill was (join;; to hit tho agents very hard, and would abolish a large number of them. Mv. IV. G. JJuthie remarked that, in trying to get at non-resident' traders, the Government were making the resident agent pay his income tax, and further it could not l)o collected. Mr. Hall said that, from inquiries which ho had made, he was assured that non-residciit traders were the men upon whom the tar. was to fall. Tho New Zealand Government had tried in the Courts to obtain the income tax from non-resi-dent traders, but had failed, and the only way in which they could get it was lo make tho agent here a martyr. This was a wrong principle entirely. The Government was takinj; upon itself to say what proiit fhe outside manufacturer made. He read a telegram from Christcburch stating that many manufacturers' agents there strongly supported the opponents of Wie Bill which they considered iniquitous. i The chairman mentioned that ho had information from Christchurch to the effect that the Chamber of Commerce there was holding a meeting on Friday in reference to the Hill. Mr. Jl'Lellan thought .that there was no doubt as to the Government's intention, but there was something to bo said on both sides...Ho thought thof a small committee might take np-thc matter nud knowing the news of tho meeting, draw up the ideas concisely so that they could be placed before tho Minister aud show him .a way out of the difficulty. The Government wanted more money and ranted to get at the non-resident traders, the bulk of the local traders paid the ! :ax at present. Ho moved as an amend- ( inent accordingly. Mr. Guy Johnston seconded tho amendnent. Ho thought that the small cominitteo was an excellent idea. Tho chairman also favoured the amendnent. which met his ideas of proportion is coming from the Chamber. Tho mover of the original motion igreed to accept the amendment in placeif the motion and it was agreed to A committee was set up as nnder:Uessrs. IT. C. Towslev, ,T. S. Hv«lon R Jail, D. J. Nathan, W, G. DiithlcVW. J Jndsoii, U. I'. M'Cabe,. T. C. Dawson. J he committee will mcel this afternoon.