GRAVE CHARGES

Evening Star, Issue 14224, 25 November 1909, Page 1

GRAVE CHARGES

THE LAND AND INCOME TAX DEPARTMENT. A RECENT INQUIRY. [From. Our Parliamentary Reporter.] WELLINGTON, November 25. In accordance with a promise given some few days ago the Prime Minister made in the House last night a statement regarding the recent inquiry into the working of the Land and Income Tax Department. Sir Joseph Ward said inquiry had been held by two Judges of the Supreme Court into charges which had been made against the Commissioner of, Taxes. Charges were made against him of irregularities, and affecting both his integrity and administration of his office The charges were made in letters addressed to him (the Prime Minister), dated Ist and 4th November. Those charges contained the names of taxpayers and statements as to the assessment in connection with their business. There were provisions in the statute which prevented these communications being made public, and under the circumstances the Government decided to ask two Judges of the Supreme Court to act as Commissioners under the Commission Inquiry Act to investigate and report upon the charges. Commissioners were appointed on 6th November, and they sat in Wellington on the 9th, 10th. and 11th. They called evidence, and fully investigated the whole of the matters under reference to them, and their report reached him on the 18th inst. In consequence, however, of the absence through illness of two Ministers it could not be .dealt with until yesterday. As both the evidence and report contained many references to taxpayers and their business and business negotiations, it was impossible, in view of the law on the subject, to make either the law or evidence public. —Tlie Judges' Findings.— However, he fell it his duty to make a statement on the subject. In the first place, their Honors discharged the Commissioner of Taxes (Mr P. Heyes) from any .sinister design or dishonest purpi so in connection with the matters alleged against him, and considered that the evidence disclosed a high order of administrative ability, great industry, and wide knowledge of 'business matters, and a marked faculty of organisation. In a lengthy reference to the evidence regarding each of the charges affecting his administration, there was disclosed coi.siderabh friction between himself and some of the officers of the department under him. There was also disclosed n. considerable doubt as to the exercise of his discretion m connection with the assessment- ;ind collection of the taxes due by thedifferent persons named in the evidence and in the report. —Further Opinions to be Taken.— In regard to the chief of these matters (continued Sir Joseph), the propriety or prudence of what the Commissioner* did would be decided shortly by the opinion of the Crown Law Officers' with a |iossiblc reference to the law courts. Under all the circumstances, in fairness both to Mr Hcyes and in ths intc-cßis of the public, the Government had decided that Mr Heyes was to be relieved of his duties for three month."- from Monday next, .and that Mr J. Richardson (Commissioner of the Government Life Insurance Department) was to be placed in charge on that date, and take charge of all the departments now controlled by Mr Heyes. Mr Richardson would still retain his jwsition as Government Life Insurance Commissioner.

—Further Developments.— Thi» course would enable the -contemplated litigation to proceed under entirely independent control. The arrangement would also enable the Government to get information regarding all matters under complaint in the past. The Prime Minister explained that the course followed by the Minister in charge of the department had been never to interfere with any matters relating to the taxation of individuals. ■ —Consulting Advisers.— Sir Joseph went on to say that before adducements for taxation were made he thought the officer in charge of the department should have two other important officers co-operating with him in cases where disputes arose.

Mr Massey : They should share the responsibility. Sir Joseph agreed. To his mind, and speaking from the results of his own experience, ho considered it would be highly improper if the Minister had referred to him the position of any taxpayer in this country. If such were the case, Sir Joseph said it would create a feeling of uneasiness. For his own part, he had never had anything to do with anyone in referonce to the imposition of taxation charges. He.realised that, the present system placed the head of an important department in the position of having to go upon his own judgment. Under tho change .suggested, with the recognised heads■ of two oilier departments by law associated with him, tho Commissioner of Taxes would have a source of protection available so far as the outside world was concerned. Such a system would also give a great'feeling of confidence in dealing with matters of this kind. —The Details.— It was not possible for him to refer to the evidence or the details of the learned Judges' report, but he had intimated the course which the Government proposed to take by relieving the Commissioner of Taxes of his duties. A full opportunity would be given to have the whole matter examined into independently. "hi that respect," he concluded, "'whatever requires to be done will be done." GOVERNMENT RESPONSIBILITY. Mr Massey said-it, was at, least satisfactory to know that the charges were not so serious as most people had imagined, or if they were so serious that they had not been substantiated. They could not understand, however, the reason why the Prime Minister had declared that it'would be impossible to put the report of the Supreme Court Judges before Parliament. If the desire to keep secret the names of private individuals concerned in business transactions with the department was the reason, nothing would be easier than to get over that difficulty by eliminating those names:

Mr Wilford: Or else replace them by tho use of letters.

Mr Massey : Yes, that is so; otherwisepeople may get the idea that something is being withheld.- It has to be remembered that the responsibility rests with the Government, and tho satisfactory working of the department is on their shoulders. It remains for tho Government, therefore, to do what is best for retaining the complete confidence of the people.