INCOME TAX

Evening Star, Issue 24006, 3 October 1941, Page 8

INCOME TAX

ASSESSMENT ANOMALIES REMOVED

(P. A.) WELLINGTON, October 2. “Tills Bill makes provision in accordance with what was said in the Budget to bring tbo trading banks under the company system of taxation instead of the arbitrary system of assets and liabilities to determine tbo profits and subsequently to determine the tax,” said the Minister of Finance, Mr Nash, when the Land and Income Tax (Amendment) Bill was introduced in the House late to-night by Gover-nor-General’s Message. The Bill was read a first time. Mr Nash said the measure also made provision to remove some of the anomalies with regard to proprietary companies. A number of companies and individuals had approached the Government with regard fo proprietary income taxation, and a promise was made to try to remove an apparent injustice in some eases. “ There is also a clause dealing with the distribution of the income of infants by trustees where infants are beneficiaries in an estate, to give them freedom from tux if the beneficiaries would not be liable for tax.” Mr Nash added that a particularly long clause relates to the assessment of banking companies for income tax, excess profits tax, . social security charge, and national security tax. The clause is of a. highly technical nature, effecting the purpose outlined by Mr Nash both to-might and in the Budget. Another clause extends to companies engaged in mercury mining the special provisions embodied in the principal Act relating to income taxation of gold mining or scbeolitc mining companies.