FINANCE ACT.

Gisborne Times, Volume XLVIII, Issue 4711, 8 November 1917, Page 2

FINANCE ACT.

REVIEW. OF LEGISLATION

AN IMPORTANT MEASURE

One of the most important of the Acts passed . during the session just concluded was the Finance Act, .a review of which is, appended. Land tax is to be levied on the unimproved value of land, diminished by the following exemptions:—Not exceeding £ISOO, a deduction of £500; when the value exceeds £ISOO, a deduction of £SOO, diminished at the rate of £1 for every £2 of that excess, so as to leave no deduction when the valhe amounts or or exceeds £2500. ; f( . - - Where the land is subject to a mortgage > the r deduction will be:— Where the total unimproved value does ngt exceed £3OOO, the sum of £1500; over £3OOO, £ISOO diminished at the rate of £1 for every £2 of that excess,, so leave no deduction when the value exceeds £6OOO. Where the Commissioner of Taxes is satisfied that the total income of the owner from all sources does not exceed £2OO, and that he is incapacitated for earning any further income, and that payment of the land tax in full would cause hardship, theJCommissioner may allow by way of special exemption a sum not- exceeding £2OOO. In the case of a widow with a child or children dependent on her the exemption may he as high as £3500.

Lessees are made liable for land tax. This does not, however, apply to Crown or Native leaseholds. Another provision is that a life tenant is liable for land tax as if he were the owner of the fee 'simple. Joint owners "will be jointly assessed without regard to their respective, interests, and joint owner will also be separately assessed, and made liable in respect of his individual interest in file joint estate. Shareholders are under this provision made liable as if | they were owners of the company’s land. In such cases, however, no shareholder will be liable whose assessable interest is less than £SOO. Sub-section 4 of section 12 defines “business premises” as under: “Business premises means- any piece of land included within the area of a building used for business purposes, together with such' additional land as immediately adjoins that'building and is used and occupied in connection therewith, and does not exceed in extent the area of the building itself. When any area so adjoining a building and used and occupied in connection therewith exceeds the area of tlte building, the Commissioner shall from time to time determine, as he thinks fit. what part of that adjoining area, equal to the area of the building, shall be deemed to be business premises. A building shall be deemed to be used for business purposes within the meaning of this section if it is exclusively or principally used, whether by the owner or any occupier or occupiers, for the purposes of any business. Joint occupiers are made liable as if they were joint owners,- and a buyer in possession is liable for the tax although the conveyance has not been executed, but the seller will remain liable when an agreement has been made for the sale of land until possession of the land has been given to the purchaser and at least 15 per cent of the purchase money has been paid. Equitable owners and trustees are made liable for the payment of land , tax; and the mortgagee in possession j ■is also made liable for the payment of the tax. Absentee landowners are liable to an additional charge of 50 per cent over and above the ordinary assessment, and the Statute says: “Every person shall be deemed to be an absentee for the purposes of this section unless he has been personally present in New Zealand for at least one-half of the period of four years immediately preceding the year oi assessment.” This provision does not, of course, apply to men on active service. ' . , -. Section 25 provides that the ordinary land tax shall be reduced by onehalf in the case of land held bv a religious society exclusively for religious or charitable purposes, or in the cases of land held bv any association of persons exclusively for outdoor sports not conducted for personalgain. . . . In regard to income tax, the Act provides for the former exemption up to £3OO, but as the income increases over £6OO that deduction »wll disn-p* pear gradually until it disappears altogether when it reaches £9OO. It is specifically provided by section 35 that the State Fire Insurance office has to pay income tax Its first income year under the Act tor this' purpose will commeiu'e oil Ist April, 1919, Section 40 lays it down that every taxpayer whose taxable income for the vear ended 31st March, 1916. was not’less than £7OO-shall subscribe to the War Loan an amount equal to three times the total amount of land tax and income tax (exclusive of excess profit duty) for which lie was liable under the Finance Act, 1916. A sliding scale of liability is provided for those who have, and have not, contributed to the War Loan. Power is given to the Commissioner of Taxes to call on any person whom he has reason to believe lias not subscribed to subscribe a certain amount. If the person concerned does not aoree lie may appeal to a board, consisting of the Auditor-General, the Commissioner of Taxes, the Secretary to the Treasury, find the Government Insurance Commissioner. That board will fix' the amount, if any. of the taxpayer's contribution to the loan. Extra duties are imposed on beer and tobacco, and an “amusement ..tax” is imposed, ranging from Id to Is per ticket.