AMUSEMENTS TAX

Dominion, Volume 11, Issue 44, 15 November 1917, Page 7

AMUSEMENTS TAX

CLUB SUBSCRIPTIONS EXEMPT

METHOD OF COLLECTION

Question has beon raised os to whether the subscriptions paid by members ot sports clubs are liable lor tho amusement tax imposed by the Finance Act <> last session. The general among mombers of i'urliamcnt and the public when the Act was passed was that it was to be levied only on the charges paid for admission to enli-rtain-ments, including such snorts conte. as boxing matches, footbaH, and c lckot malchos, and similar sports to which it is tho custom to charge for admission In one part of the interpretation clause of tho Act it is laid down that the tax is to bo levied on payment mado m persons for admission as spectators or n> members of an audience, but the clause omits to bo as definite as it might bo 00. the point of whether persons who pay for membership ot a club for tho pnipos* of attending at a place where a game 01 sport is carried on m order theinsohes to take part in the game are.liable to pay the tax. The Commissionci o Stamps has considered this question yei fully, and ho lias come to the conclusion Hint club subscriptions to s"ch. institution as bowling, golf, or tennis clubs are not liable to duty. If at any time admission is charged to persons wishing to bo speotators at any of these games, the admission charge will be liable to tho new duties. . , The question is not so simple as applied to a variety of entertainments, such as skating, dances, card parties, and the like, to which persons pay tor admission in order to take part in tno pastime for which tho entertainment has beon promoted. It cannot be said tnat they are present as members of an audience or as spectators, although, tliej may be there partly in that capacity. JXo definite pronouncement has yet been macio as to the policy of the Department in regard 'to the taxing of such entortamments, but it is probnblo that the tax will not be levied on oharges for admiseioii to such entertainments. It tney are private affairs, promoted by, a limited number of people for. their own amusement, the expenses being defrayed by subscription, it is probable that the tax will not be charged upon the su.oBcriptions, as the persons promoting ana tnkinK part in such pastimes are in mucn the same position as members of sports clubs. . , As the Finance Act came into operation at the beginning of November, the Department has just begun to collect the amusement tax, and the returns for the first woek have begun to come in. ihe practice adopted in dealing with permanent shows, such as those in picture houses, is to accept the certified statement of tho proprietor or manager as to the number of tickets liable to duly that have been sold during the week. They are bound to use the roll tickets which have come into vogue in latei years, and at any timo an agent of the Department, wbo may be a. policeman, may go into tho ticket box and take a note of the numbers of tickets as , they are being sold. Tho same procedure is taken with the established firms in control of itinerant companies, but new companies aro required to use tickets supplied by the Department, and to cuter into a bond and to find an approved security for an amount estimated to cover tho amount of tax for which any particular company is likely to become liable. In these cases tho .Department has ft chpek which is for praotical purposes absolute. If there should bo any reason to suspect that the manager of a permanent or itinorant show is not furnishing accurate Tcturns, ho may bo asked to uae tlie Department's tickets also. It should be remembered that by far the greater number of tickets purchased for admission to picture shows in tho citios aro not liable to tho duty, because tickets of less than one shilling in value do not pay duty. It has been found that quite largo theatres which rely mostly on the customers who frequent tho cheaper parts .nf tho houso may be required to pay only about twonty-fiyo shilling in duty foj the first week in which the tax has been in operation. The bulk of the rovemis from this tax will be collected from those entertainments for which the admission charge is considerable.