PENAL TAX

Evening Post, Volume CVI, Issue 13, 16 July 1923, Page 7

PENAL TAX

On unimproved land

POSITION REGARDING OBJEC. 1 TIONS. . :

Imposition of a tax on land which has not been improved formed the subject 01 a statement issued from the Prime Minister's,, office; on . Satutdfcy. afternoon. It is not an'unusual-•experience'-to. finct new legislation" hastily condemned from want of knowledge of its' operation and intention," said-the statement! "An instance occilrs in regard to the provision in the Land and Income Tax, 1920, which imposes certain penalties in regard .;tti; land tax upon land which has not been improved. • This provision is,, embodied.. in/ section" 6 of ;,ithe... Act.An Oamaru "paper has been 'the 'chief complainant in regard to this enactment. It quotes the case bt a.holder of:.9000 acres of low-quality land, who, upon complaining ;to the Land • and "Income Tax Department "that he was penalised under the clause stated- above (whereas his 'land' was' incapable of carrying; the improvement required) ..was notified, that he would berelieved of-such penalties. The paper added: 'While this is not at all satisfactory, to the property-dw,riers, it is a clear admission that the penalty has been imposed without sufficient: investigation .being, made.,', „- .' . ' "The position in regard to this new, law was clearly set out to the Shespo>vners'...Fedefation by iho'ComniiEsipner .of Taxes, last; week.,' :The.iatter.,explained that the Department accepted the Valuation Department's data' in regard to the improvements effected;: Every landowner (the law applied to all lands outside boroughs) had been £iven. notice of assessment in cases where the figures showed that improvements were not in accordance with the requirements of'the Act. It was then the duty of the taxpayer to write ; and state the facts of the case, and the appeal would be treated upon' its merits. The "law distinctly made provision for this appeal, and the notice of assessment sets that out. .

"The Commissioner at the conference mentioned above said that lie wished to give careful consideration to all cases in Which owners were of opinion that their properties were sufficiently improved. The whole .'object of the. provision in the Act was to avoid remission of taxation and to impose additional land tax on land which was being held purely for speculative purposes and without improvements being effected." - . '■. ..."