NEW SOUTH WALES TAXATION

Evening Star, Issue 24016, 15 October 1941, Page 8

NEW SOUTH WALES TAXATION

RADICAL CHANGES PROPOSED NEW BILL INTRODUCED Press Association—By Telegraph—Copyright (Rec. 12.15 p.m.) SYDNEY, Oct. 15. Sweeping changes in the State taxation system are provided for in a Bill introduced into the Legislative Assembly by Mr McKell, of New South Wales. {Companies will he taxed at the rate of 3s in the pound, -while companies in other States making profits in New South Wales will pay 3s 6d in the pound* Mr McKell said this would recoup the revenue lost by abolishing the wages tax and reducing the tax on lower incomes. The Government would close the avenues through which taxation had been evaded. It proposed, firstly, abolition of the tax rebate of 2s Cd in the p’onnd on dividends from Australian companies; secondly, a tax on income earned both in and out of the State; thirdly, producers of goods in another State to pay on their goods sold in New South Wales the difference between the taxation in their own State and this State; fourthly, a tightening of the taxation of incomes of family partnerships, family trusts, and postnuptial settlements to prevent existing tax evasions; fifthly, abolition of the deduction allowed companies on interest paid on debentures raised outside Australia; sixthly, abolition of the_ joint assessment of companies consisting of the same shareholders so that one company’s loss could not he offset against another company’s profit; seventhly, profit on the sale of goodwill to Ibe taxable if the business were resold within seven years; eighthly, the maximum deduction allowed, for gifts to charities to he £IOO.