DETAILS OF NEW TAXATION

Evening Post, Volume XCIV, Issue 51, 29 August 1917, Page 3

DETAILS OF NEW TAXATION

LAND AND INCOMES TO BE DRAWN ON

EXEMPTION OF SMALL SHAREHOLDERS

TAX 'ON AMUSEMENTS

Great interest attaches to the details of the new war taxation as disclosed in the- Finance Bill, brought down in' the House of Representatives by Go-ve'rnnor-General's Message last night. The extent to which land and incomes axe affected by the Government's proposals is shown by the following extract from tha first and second schedules to the Bill:— j PAYMENTS ON LAND. j 1. Where the unimproved, value on ■ which land-tax is payable does not ex- [ ceed £1000 the rate of land-tax shall be Id for every £1 thereof. 2 Where the unimproved value on which land-tax is payable exceeds £1000 the rats of land-tax shall be Id for ever £1 thereof increased by one thirty-two-thousandth part of Id for every £1 in excess of £1000, but so as not to exceein any case the rate of 7d in the £1. 3. In addition to the land-tax payable as provided in clause 1 or clause 2 of this Part of this Sri-" '.ule, as the case may be, there shall vi every case be payable by way of land-tax an amount equal to 50 per centum of the land-tax so payable. INCOME TAX. j 1. On income assessable under sub- I section (3) of section 112 of the Land and Income Tax Act, 1916, the rate of income-tax shall be Is for every £1 thereof. ! 2. ,On the taxable income of companies the rates of income-tax shall be as fol-. lows:— I (a) Where the income on which tax is payable does not exceed £1600 the rate shall be Is for every £1 thereof. (b) Where such income exceeds £1600 ' the rate.shall be Is for every £1 thereof increased by one twohundredth part of Id for every £1 in excess of £160.0, but so as not to exceed in any case the rate of. 3s in the £1. 3. On the taxable income of all taxpayers other than -those referred to in clauses 1 and 2 hereof the rates of in-come-tax shall be as follows:- — (a) Where the income on which tax is payable does not exceed £400 ■the rate shall be 6d for every £1 thereof (bj AVhere such income exceeds £400 the rate shall be 6d for every £1 thereof increased by on© twohundreth part of Id for every £l in excess of £400, but so as not to exceed in any case the rate of 3s in the £1. The present exemption up to £300 is maintained, but it will be diminished at th'O rate of £ for every £1 of the excess of that income over £600, and there will be no deduction at £SOO or over. Naval and military pay earned beyond New Zealand will not be assessable for income tax. Provision is also made for remitting any charge for income tax on a company shareholder whose total income from his shareholdings does not exceed £300. MORTGAGE-TAX DEDUCTIONS. In regard to the mortgage tax, the following deductions are provided for: —Up to £3000, £1500; over £3000, £1500, diminished at the rate of £3 for every £4 of that excess,, so as to leave* no deduction when the value amounts to or exceeds £5000. In cases where the total income of the owner from all ' sources does not exceed £200 a yedr ■ and that payment of the land tax in; full woujd cause hardship, the Commis- j sioner of Taxes may allow _by way of j special exemption a deduction not ex- j ceeding £2000. In the case of a widow with dependent children the exemption may be increased to £3500. Provision is a'*a made for a deduction from the tax payable by the lessee; that a life tenant is liable as if he were) the owner of the fee simple; and that joint owners are to be assessed jointly and severally; shareholders in a company arc to be taxed in proportion to their holdings, with an exemption up to £500., ■ • . ■'•■•; LANDS OF RELIGIOUS AND SPORTS BODIES. Lands held by a religious society exclusively for, religious 'or charitable purposes, or land held by any association of persons exclusively for purposes of outdoor sports not conducted for pecuniary gains, will be charged only half rates. Thie does not apply to land held.for horse-racing.