TAXATION RETURNS

Dominion, Volume 22, Issue 12, 9 October 1928, Page 10

TAXATION RETURNS

INSPECTION OF BANK ACCOUNTS

DEPARTMENT’S RIGHT OF ACCESS

The rights of the Land and Income Tax Department to scrutinise the bank accounts of taxpayers were mentioned in the House of Representatives yesterday by the Minister of Finance (the Hon. W. D. Stewart). The Minister was asked by Mr. J. McCombs (Lyttelton) if, in order to discover possible evasions of income tax, it was the practice of the department to scrutinise accounts in the Post Office Savings Bank without first obtaining the consent of the depositors concerned, and, also, if similar scrutiny took place in connection with accounts in the ordinary commercial banks. The Minister said he had been advised by the department that in a large number of cases investigation of the taxpayers’ books which were undertaken for the purpose of checking their returns of income would be incomplete without a scrutiny of their current accounts with a commercial bank and also with the Post Office Savings Bank. In some cases the taxpayer had not in his possession the information or explanation required by the department’s inspectors. It then became necessary to apply to his banker, merchant or solicitor or to the Post Office Savings Bank. An officer of the department authorised for the purpose had the right at all- times of full and free access to all lands, buildings, places, books and documents for the purpose of inspecting them in the execution of his office. It was the practice, however, before application was made, for information from those sources, to obtain the taxpayer’s consent.