THE WAR LOAN.

Gisborne Times, Volume XLIX, Issue 4847, 19 April 1918, Page 5

THE WAR LOAN.

OPERATION OE COMPULSORY CLAUSES.

Press Association Telegram. TV ELLINGTON, April 18Interviewed to-day on the subject ■of the compulsory clauses of the Finance Act, Sir Joseph Ward made the following; statement, which will he of interest to those concerned: — “As doubts appear to exist in the minds of many people regarding their ■obligation to subscribe to the War Loan under the compulsory clauses of the Finance Act, it may be well' ■to explain clearly how it is’ proposed t 0 administer these clauses. Section 40 of the Finance Act .of 1917, which provided compulsory clauses under that Act, has been repealed and the only compulsory clauses which are now operative are those contained in the Finance Act of 1918. Under these latter -clauses the Commisisoner A Taxes is empowered, after compart *■■•. the amount of land and income < Jw- paid by any individual with the 'Tkhount of subscriptions to the WarLoan by that individual, to serve a notice on the taxpayer claiming an additional sum by way of subscription to the loan. Provision is made for the setting up of’ an Appeal Board to deal with any objections to the amount assessed by the Commissioner, of Taxes and a further appeal to a Judge of the Supreme Court is also provided by the Act. Every person is liable to be called upon to contribute six times the average annual amount of land and income tax assessed to him for the years 1915-16, 1916-17 and 1917-18: This does not mean that the Commissioner of Taxes is compelled to claim six times j the amount of such taxation, but this

provision is -merely inserted in the Ace to provide a maximum amount, y- beyond which the Commissioner of Taxes cannot go. The Act also provides that subscriptions to* the loan under these compulsory clauses will bear interest of 3 per cent only, but 1 wish it to be thoroughly understood that time will he given to enable persons to discuss their position with the Commissioner of Taxes before the penal clauses are put into operation. Considerable discretionary powers are given to the Appeal Board, who, in dealing with any appeal, will take into consideration the fact that an appellant had subscribed liberally to a previous loan or that he had business losses or that his circumstances were otherwise such as would justify him in claiming partial or whole exemption from the provisions of the Act. The object of the compulsory clauses is not so much to compel the willing contributor to subscribe more than he has done, as it is to compel the shirker to shoulder his fair share of the financial] burdens of the country.” in concluding his remarks, Sir Joseph said he felt it his duty to state that he had given instructions for the compulsory clauses of the Act to he put into operation, as he found it necessary that this should be done. He would make a general statement about the present loan and give information concerning the £20.000(600 loan in the course of a day or two.