TAX AMENDMENT BILL

Dominion, Volume 35, Issue 7, 3 October 1941, Page 8

TAX AMENDMENT BILL

Read First Time POSITION OF TRADING BANKS “This Bill makes provision, in accordance with what was said in the Budget, to bring trading banks under the company system of taxation instead of the arbitrary system of assets and liabilities to determine tlje profits and subsequently to determine the tax,” said the Minister of Finance, Mr. Nash, when the Laud and Incometax (Amendment) Bill was introduced late last night by Governor-General’s message. The Bill was read a first time.

Mr. Nash said that tbe measure also made provision to remove some of the anomalies with regard to proprietary companies. A number of companies and individuals had approached the Government with regard to proprietary income taxation and a promise was made to try to remove an apparent injustice in some cases. “There is also a clause dealing with the distribution of the income of infants by trustees, where the infants are beneficiaries in an estate, to give them freedom from tax if the beneficiaries would not be liable for the tax,” Mr. Nash added. A particularly long clause, extending over nearly four pages of the Bill, relates to the assessment of banking companies for income tax, excess profits tax, social security charge, and national security tax. The clause is of a highly technical nature, effecting the purpose outlined by Mr. Nash both last night, and in tlie Budget. Another clause extends to companies engaged in mercury-mining, the special provisions embodied in the principal Act relating to the income-taxa-tion of goldmining or scheelite-mining companies.