TAXATION LAW

Evening Post, Volume CX, Issue 45, 21 August 1925, Page 4

TAXATION LAW

TO RELIEVE HARDSHIP

WHERE THERE ARE ARREARS

AN AMENDING BILL,

The most important clause in an amendment of the Land and Income : Tax Act, introduced in tho House of Representatives yesterday, relates to '. the difficulty of securing a title to land which has been made subject to a charge for unpaid land tax. Where cases of hardship arise through the operation of. this clauae in last year's Act, a Commission of Inquiry may bo' 3et up, and if it recommends relief for the successor in title of the tenant or mortgagee the Commissioner of Taxes may amend the assessment accordingly. To prevent similar difficulties, arising in future, another clause empowers the Commissioner to make a special. assessment of land the owner of which, on 31st iMarch disposes or.intends to dispose of; . iis interest before the due date for pay-! nent of land tax. In any such assessnent made before, tha passing of the annual taxing., Bill the .rate shall be that' gjr-pvided ;in the previous year's measure. Exemption from income tax is to be' given co-operative dairy companies_ in.re-' spect. to that portion, of their incon\e i '.from.,the manufacture and sale of milk products ' which' is distributed solely.' among suppliers, in proportion to the supplied.by them. x T,he Leader of the Opposition (Mr, G.. W;;. Forbes) suggested that the Bill' should be referred to the Public Accounts Committee. ; . . The Hon. J. A. Hanan (Invercargill), supported the suggestion that- the Bill; should be'referred to the Public Accounts Committee';^ so that its contents . might be'fully' investigated. They did not: wafit to make,.unwarranted reductions in taxation; and thereby throwimpney away,' [and' it was to gnard against that possi-: I bility that'the Bjil,.should be examined! by the Public Accqnnts Committee. - ' - The Minister of Finance (the Hon. W. Noawprthy): "Do you suggest that lam trying to do anything crooked?" Mr. Hanan: "A man'may.blunder or: muddle for want of'knowledge." : "NO BLUNDER HERE" ■ • • -. ■ i "There is no; Wuridef here," interjected the Prime Minister. Mr. Hiinan: "I venture to' suggest that the Prime Minister is hot willing to submit to cvoss-examirlation by me 'on the merits of the Bill." „...'■ ! "Oh, yes," replied Mr. Coates.. ] Mr. Hanan said the late Mr. "Massey had agreed to such Bills going before-the I Public Accounts Committee. . . .; Mr. Noswcrthy intei-posed that he di<3 I not remember it. .... ; ... . j "That is what I say," remarked Mr. Hanan ;■ "you don't know anything about it. Of.course he did." ; , ._ •■ . "Not tho Finance Bill," aaid Mr. Nos- | worthy. . ■ . . ..... .. . ' "So much for the information the Minister of Finance has regarding dommittees," stated Mr. Hanan. Mr. Nosworthy: "I know." Mr: .Hanan: "You don'.t." By mentioning, the Finance Sill the Ministerwas changing his ground. "The Hon. Minister is only new to his position," said "Mr. Hanan; "ho has a lot to learn." . . : . ■ • Mr. Nosworthy: "We .all have..-" I Mr. Hanan: "We want to help'him." "Help him. out," suggested Mr. A. L. Monteith (Wellington East), , . . ; i "I run very much concerned with the j reputation of the .Minister of Finance," proceeded Mr.' Hanan, who !added that he thought; the :people 1 of the country, would'agree' with 'the.Leader; of the Op-. . position that. the right' course for thd Government to adopt was ; hot to block. investigation or "thwart investigation'of : the matter. , . "I think, it is just.a. sin t-d go |miid--dling'ori with our'present inequitable system of taxation," said Mr. Wi Al. Ve'itch '(W'angauui). "Here was a Bill making .reductions' on an inequitable principle. Mr. W. D. Lysnar (Gisborne): "Oh, question." ..,''.' •■"lt's all very well for 1 the" hon; member to say question," 'retorted "Mr. i Veitch, "but he's in the fortunate position of being benefited, for the reductions will go his way. 'I am '• speaking for people'not so fortunately placed." He appealed that'the Bill should go to "the ''üblic Accounts Committee, and said Jiat for the present'they would accept the" assurance. of' the ' Minister that he had nothing to.hide. Mr. J. M'Combs (Lyttelton) consider-' ed'that the request need not be viewed with suspicion. Members were merely trying to have a. promise of the late Minister of Finance carried into effect. The ; action of the Government was creating a suspicion that everything was not as, it ought to be. . ■ Mr. Lysnar thought'that comments on tho Bill should be reserved until it came before the House. ' The Bill did not propose a general reduction in taxation, but ,;nerely afforded-relief in cases of hardAip. ...... Mr.'J. R.■Corrig'an. (Pat'ea): "How.do you know what's jn itT' In reply to a, Labour member!s interjections, Mr. Lysnar said . the member , was criticising tho Bill without knowing what was in it. Labour members: "What do'vou know is in'it?" "NOTHING TO HIDF" Tlie Prime Minister said the Government was quite prepared to send tho Bill to the_Committsj3'if the House wished, as it had nothing to hide. Mr. Nr■ worthy said it was only in 1923 or 1924 that the lute Mr. Massey had 'referred his general taxing Bills to the Committee. The' Leader of the Opposition had asked whether the"Bill'would be referred to tho Public Accounts Commjttee. 'The Prime Minister: "That is for the Government to say." Mr. Nosworthy said he had no objections to the Bill going to the Committee. The Bill was read a first time.