INCOME TAX REVISION

Evening Post, Volume XCVII, Issue 37, 14 February 1919, Page 8

INCOME TAX REVISION

ARE ALL TRADES TREATED

ALIKE?

Special reference to the subject of income tax was made by Mr. James Macintosh in his address to members of the British Manufacturers and Agents' Association tin's afternoon.

Mr. Macintosh said that in response to representations made by other - commercial bodies regarding income taxation, the Minister of' Finance, while holding out no ■ hope of alteration during the war period, intimated that, in his opinion, the whole basis of the assessment of incomes for taxation purposes would require to be reviewed. He need hardly remind ■members ,of the- association. that they 'were- peculiarly' interested *in that portion of the New ZeaJand_liiconie Tax Act "whicli ~h_i3e~-ffiem''personally responsible for'payment of income tax on business done-in New Zealand- by their principals. It Was universally felt among agents that, - however'justifiable as a matter of principle it might be to ask .overseas traders'to pay" income tax in New Zealand ••on' business done in'the Dominion, as a matter of practice it was questionable whether all overseas traders were treated alike. The question of liability -seemed really-to depend upon methods of trading. A.'--British or other overseas manufacturer might have extensive, business relations with New Zealand, and yet not-be-liable under the provisions of the .A'ct'.y It; -would also b_;.very interesting -to know to what extent American, Continental, and Eastern houses who had agents in New/Zealand contributed to the income tax revenue.

-There was also the vexatious question of double income tax, the unfairness of which had been the more brought into relief by they heavy rates of income tax payable both'in the United Kingdom and in the Dominion. > The high rates of taxation compelled a modification of the practice of taxing incomes in two countries. This was a-matter-which would also re- . quire to be closely .watched, by the association during the next few years.