DELAYED TAXATION PAYMENTS: SECRET RESERVE ISSUE

Gisborne Herald, Volume LXXV, Issue 22655, 4 June 1948, Page 6

DELAYED TAXATION PAYMENTS: SECRET RESERVE ISSUE

(PA.) WELLINGTON. June 4. A suggestion the Minister of Finance when preparing his Budget each year should bring to charge the amount of taxation outstanding was made at a meeting of the Wellington Chamber of Commerce when a letter from Mr. Nash about late income tax demands was read. "It is obvious that the Government has at present available a large secret reserve arising from the late issue of tax demands." said the president, Mr. G- Stewart. “Information regarding this undisclosed balance should be made available to '.he public to enable them to judge the necessity tor taxation requirements for the ensuing year."

In reply to representations made by the Associated Chambers of Commerce about the late dispatch of demands, the Minister stated that in the Wellington district the last day for payment was April 7 and this resulted m a carry-over of an amount which could not be estimated until the figures were analysed. “Notwithstanding the late day for payment,” said the Minister, “I am advised by the Treasury that a fairly substantial amount of income tax payable by individuals in the Wellington district was in actual fact paid on or before March 31.” The Minister added that it was correct that tne demands tor tax payable by some companies had been held over beyond Marcn 31, but it was reasonable to assume that at March 31, 1949, there would gain be demands lor some companies held over which would offset the tax received from this source during 1948-49 in respect of the previous year.

The amount of taxation carried over would be taken into account when the Budget was being prepared. The chamber decided that the representations should be continued.