NATIONAL SECURITY TAX

Dominion, Volume 33, Issue 283, 24 August 1940, Page 13

NATIONAL SECURITY TAX

No Double Contribution

MR. NASH EXPLAINS THE POSITION

■“There is no question of double contribution by persons other than wageearners, because only one year’s tax is payable each year,” said the Minister of Finance, Mr. Nash, replying tp an urgent question on the National Security tax by Mr. Boswell (Government, Bay of Islands). Mr. Boswell asked the Minister whether he had seen articles in the Press regarding the payment of the tax which created the impression that taxpayers other than wage-earners were required to pay double tax for the current year, and whether he would make the position clear. •‘There has been a certain amount of misunderstanding as to the extent of the liability in cases of the nature mentioned by Mr. Boswell,” Mr. Nash said in reply, ‘‘but the position is now fairly well understood. The National Security tax is a special emergency tax payable for war purposes by all persons in receipt of income. Contribution in accordance with the annual income received is required from all this year.

“In the case of wage-earners, payment is made by deduction at the time of receipt of wages. In the case of persons with income other than wages, the liability to contribute this year is measured by the amount of last year’s income. This must necessarily be so, because in such cases the amount of the current year’s Income is not yet known. There is no question of double contribution by persons other than wageearners because only one year’s tax is payable each year. “When the tax is ultimately removed .it will be removed from each class of taxpayer at the same time, with the result that alt taxpayers will have paid in respect of income for exactly the same number of years.”

Mr. Broadfoot (Opposition, Waitomo): When is it being removed? Mr. Nash: When it is removed. (Laughter.) The Minister of Internal Affairs, Mr. Parry; Hitler will determine that.