CHANGE OF COMPANY BALANCE DATES

Dominion, Volume 31, Issue 143, 14 March 1938, Page 11

CHANGE OF COMPANY BALANCE DATES

Clause to Prevent Evasion

Of Taxation

Taxation which may have been evaded as a result of changes in the annual balance dates of companies during the last six years may become liable as a result of an amendment to the relative clause in the Finance Bill (No. 2). The amendment was introduced by the Minister of Finance, Hon. W. Nash, during the committee stages in the House of Representatives on Saturday and was read into tbe Bill, which was put through its remaining stages with very little discussion and passed. The Bill provides that, in future, when taxpayers wish to furnish returns for the year ending on the date of the annual balance of their accounts, they may not alter the dates of the financial year without the prior consent of the Commissioner of Taxes. The new clause introduced on Saturday tightens up the law in this respect so that if, as a result of a change in balance dates, taxation i s paid only for a z portion of a year, (the extra amount must be paid in the next succeeding year. This provision is made retrospective to April 1, 1932.