INQUISITORIAL.

Evening Star, Issue 9707, 16 May 1895, Page 1

INQUISITORIAL.

IN the administration of their policy of State interference with everything the Government would seem to be determined to strain the Acts they have succeeded in placing on the Statute Book so •as to harass aud impede business, trade, ; a»d industry. A notable illustration of this is daily before our eyes in the- action taken to enforce literally the provisions of the Shops and Shop Assistants Act—a measure which requires to be handled with discretion and with due consideration to the interests of the shopkeepers. As matters have eventuated, there is.uiuch reason to apprehend that the shop assistants as a body will find the compulsory half-holiday a very doubtful boon, since there is v a tendency, already shown, towards the reduction of establishments and the general curtailment of working expenses in the retail trade, owing to the contraction which, rightly or wrongly, is believed to have taken place of the volume of business. The Factories Act, again, is altogether—if we may so express it—too much iu evidence for the carrying out of its legitimate purposes : of protecting the workers whose age or sex precludes them from effectively protecting themselves, and securing wholesome sanitary conditions. The legion of inspectors under this and other Acts are bound, it may be presumed, to justify their existence by restless activity ; and they know, moreover, that an exhibition of zeal is expected of them. The country, as a matter of fact, is overrun by Government spies a system entirely antagonistic to English ideas. It is not, however, our present purpose to discuss the operation of these statutes, which are fast briuging about for the working classes a state of things far "worse than the first," but to direct attention to a new departure by the Government in regard to assessment for Income Tax, which has the effect of accentuating the very grave objections to this tax on the grounds of its inquisitorial character.

At the meeting of tbe Committee of the Dunedin Chamber of Commerce on Monday the form of Income Tax returns required this year by the Commissioner of Taxes was considered, the attention of the Committee having been called thereto by a manufacturing firm in the City. It was resolved to protest against this new form of returns on three grounds. First, the amount of labor required in the compilation involving considerable expense : second, the impossibility in many cases of giving the particulars'demanded ; and, third, the inquisitorial nature of much of the information required, and the danger of such information,essentially confidential, leaking out through the returns passing through numerous hands. This protest was embodied in a latter from the president of the Chamber, and forwarded to the Premier under date May 14, and will presumably be " whistled down the wind :! by that honorable gentleman, in whose eyes chambers of commerce or any other associations representing settled interests are an abomination and a quantity to be disregarded politically. The Tax Department has for some time been conducting the administration of the Assessment Act somewhat on Star Chamber principles. Accountants have been sent throughout the Colony with authority to pry into the affairs of every person suspected, or unsuspected, of evading the tax, with the purpose, possibly for ulterior objects, of obtaining a knowledge of the whole business of the country. No reasonable objection could of course be advanced against a scrutiny where there are grounds of suspicion "that false or erroneous returns have been sent in : but it appears that the Commissioner has, through his officials, made a very general practice of what should be only partial and exceptional. The process is indeed calculated to excite vehement indignation, and we are surprised that this has not found public expression More to the immediate point, however, is the form of returns of business incomes required to be made under the new svstem ; and this, it will be seen, fully justifies the protest of the Chamber of Commerce. There is, for instance, a statement to be made by local authorities, persons, firms, companies, and societies of all officers, managers, travellers, clerks, foremen, workmen, servants, and others in their employ, setting forth whether paid by salary, weekly wage, or otherwise, and giving names in full, in what capacity employed, amount of pay, including salary, wages, commission, and allowances. There are to be set forth in detail "sales for twelve months " ending at the date of stock - taking " (include goods supplied for proprietors' " own use and goods used in the business, "or upon plant, buildings, fixtures, etc.) ; " stock in hand at date of stock-taking ou "expiry of the twelve months, less stock "in hand at the commencement of the "twelve months ; purchases, etc., for "twelve months ending at date of stock- " taking (at cost laid down on the " premises); labor and material used in "manufactures (this should only appear "in case of a manufacturing business) ; "other income from business—viz., com- " missions, etc." There are further to be detailed : " Deductions from gross income, " salaries, and wages (not to include any "sums drawn by proprietors or any "sums claimed under heading ' labor and " materials '*) ; rent (include only rent of "premises or portion of premises used "exclusively for the purpose of the " business); interest, exchange, and dis- " count allowed, less amount received ; " printing, stationery, advertising, stamps, " and telegrams ; travelling expenses, in- " curred in the business only ; repairs or "maintenances (not to include additions " or improvements to property or plant) ; " sundries, petty expenses, incurred in the " business only ; bad debts (to in- " elude those proved to be bad during "the year and actually written off, and " no others); other items." It is at once evident that the compilation of these returns must involve a large amount of clerical labor and consequent expense, whilst there is a complete exposure of the very heart of the business, which has to pass through dozens of official hands. What can possibly bo the utility for Income Tax purposes of the information required? The only concern of the Commissioner is with the profits of a business upon which the tax is to be paid. What on earth has he to do with minute details of purchases, sales, expenditure, profit and loss, and the whole internat economy of a manufacturing or business* establishment ? All that he can reasonably and, we believe, legally demand is a statement of income made consc : entiously by persons liable to the lucome Tax, with such particulars as are defined by statute. The Governor-in-Council, it is true, has

authority to make regulations for any purpose, ' whether general or to meet •special eases, but these regulations must not bo "inconsistent with the Assessment Acts," which eertaiuly do not authorise such odious or inquisitorial proceedings.