OFFICE DOORS LOCKED

Dominion, Volume 25, Issue 166, 9 April 1932, Page 11

OFFICE DOORS LOCKED

Check to Commonwealth MR. LANG RETALIATES Assessments Shut Up A TAXATION QUANDARY By Telegraph—-Press Assn.—Copyright. (Rec. April 8, 7.10 p.m. Sydney, April 8. The first retaliatory move by the State Premier, Mr. J. T. Lang, against the Commonwealth was launched to-day. Officers of the Taxation Department on arrival at their offices found the doors locked on the three floors where assessments and records are kept, and the issue of all assessments, both and State, has been discontinued. Over night al! locks had been ci ‘ an S® da d the keys are reported to be held by the Premier. This move automatically causes a cessation of the issue of all assessments and prevents the Federal authorities from gaining access to the records of those assessments already issued Scores of officers have been told that tney must take leave. . Mr. E. J. McMahon, Commissioner of Taxation, has declined to make a statement. , ■ The Federal Government has power to order Mr. Lang or Mr. McMahon, under pain of severe penalty, to open the doors and to instruct all employees to return to duty, while people who have already received assessments are obliged to pay the taxation due to the Commonwealth promptly. An interesting feature to-day was a rush of taxpayers to pay their taxes at the Commonwealth Bank, in accordance with yesterday’s proclamation. Hundreds sought the distinction of being first to take advantage of the new order of things, special arrangements having been made to cope with the situation. It is reported that Mr. Lang during the week withdrew a further £250,000 from the Bank of New South Wales and transferred it to the State Treasury vaults.

In Strict Accordance with Law. The Prime Minister, Mr. J. A. Lyons, said: “We will act strictly according to the law, and we expect Mr. Lang to do the same. If the High Court’s decision had been adverse, we should have accepted it.” Warning to Taxpayers. The Sydney papers publish articles on the Federal proclamation. The “Daily Telegraph” says: “Remember, if you pay the tax to the Taxation Department, you break the law and can be heavily fined. Moreover, you will have to pay again to the Commonwealth authorities.” The "Sydney Morning Herald” says: "It is accepted in State political circles that Mr. Lang is hoping for a favourable verdict from the Privy Council on the Upper House issue. . If this is given he will be in a position to levy taxation or make a capital levy that might enable him to meet his obligations. There is a strong opinion that if the Privy Council’s judgment is given against the State, Mr. Lang will resign.” Surprises for Federal Authorities. The “Labour Dally,” with a streamline heading, “Foreclosure on Bank Deposits is Feared,” says that “determined and effective action will be taken by the New South Wales Government to checkmate the vindictive move of the Federal Government in issuing a proclamation for seizure of State revenues. The plans of the State Government cannot be disclosed at this stage, but-its supporters can be assured that they arc thorough and effective, and more than one surprise awaits the Federal authorities. The main danger, however, lies in the fact that in the Commonwealth Bank are the deposits of over one million New South Wales citizens who were inveigled into depositing their money there when the New South Wales Savings Bank closed. The real purpose behind the closing of the Goveriment Savings Bank is thus revealed to have been a determination to make file savings of the New South Wales people readily accessible in event of the Commonwealth deciding to seize them.” Trade Unions’ Attitude. The unions' attitude toward the Commonwealth was defined last night at. n meeting of the Trades and Labour Council, where, after inflammatory speeches, it was resolved to call upon ail unions to place their organisations at the disposal of the State Government, either in the industrial field “or in any other field where it was deemed necessary to meet the 1 attacks of the Fascists and plunderers who are assailing the Lang Administration.” NO COMMENT BY MR. LYONS (Rec. AprlUS, 10.5 p.m.) Melbourne, April 8. After a meeting of the Federal Cabinet to-day, the Prime Minister. Mr. .1. A. Lyons, stated that he had no comment to offer in regard to Mr. Lang's action in closing the taxation offices and impounding the assessments. DEFAULT IN INTEREST Mr.. Lang’s Claim Rebutted Melbourne. April 8. “Even the Harbour Bridge was built on borrowed money on which Mr. Lang refuses to pay interest,” declared Mr. Stanley Bruce in a speech at Belgrave, rebutting the claim of Mr. Lang that he was defaulting only on war expenditure. Mr. Bruce said that not one penny of this New South Wales debt had been incurred in connection with the war. The money owed had been spent inside New South Wales. DECISION ON APPEAL A Confident Prediction London, April 7. “The High Court decision threatens State independence and endangers the Federation,” Mr. Willis, New South Wales Agent-General, told the “Sun.” “The dissent of the Chief Justice and Mr. Justice Evatt leads me to predict confidently that if Mr. Lang appeals to the Privy Council, the decision would ■be reversed. Mr. Lang means what he says when he declares that he will I use every means to resist enforcenieit 1 of ths Act.”