NEW TAXATION BILL

Gisborne Times, Volume LIII, Issue 5582, 10 September 1920, Page 6

NEW TAXATION BILL

POSITION AS TO LAND AND INCOME LEVIES.

WELLINGTON, Sept'. 8. Th'e Land and Income Tax Amendment Bill, which was introduce.d m the House on Tuesday night, was circulated to-day. It contains several amendments in addition to those alreadv summarised. The Commissioner of Taxes has power at present to make a special deduction from the unimproved value in respect of land tax in cases where the payer is a widow with dependent children. The maximum deduction is now being increased from £3500 to £4OOO. The law relating to the taxation ot companies with the same shareholders is being made more severe. Companies are to be deemed to consist substantially of the same shareholders if not less than one half of the paid-up capital of each of them is held by or on behalf of the shareholders m the other. Land tax and income tax will then be paid as if the companies were joint concerns, subject to certain adjustments. The important amendment is the substitution of "one-half” for "three-quarters,” the. proportion mentioned in the present law. If any Native land is held by a trustee (not being a Native) in trust, for the Native owner, the land tax, as laid down in the Finance Act 1917, is to be paid on behalf of the Native owner bj the trustee. In all other cases the tax is to be payable on behalf of the Native owner by the occupier of the land.

The exemption of £SO allowed in respect of a child of a payer of income tax applies only to earned income. This exemption has been increased from £25 of assessable income and the age of the children covered by the exemption has been raised from 16 years to IS years. The present law allows limited 'exemptions of income in respect of insurance premiums and superannuation pay- ‘ ments. The Bill withdraws the old limits and provides that deductions shall not exceed in the aggregate -0 per cent of the enrnod income, limned income includes all salary, wages, bonuses, and allowances and all other mcome derived from any source by a ratepayer (not. being a company pv a public' or local authority) by reason of liis personal exertions. Income in excess of £2OOO a year is not to be deemed to be earned income. The penalties for failure to pay income tax within the specified period are ■ being reduced. The present law provides that, the addition to the tax shall be 10 per cent, after 21 days. 12-j per cent, after three months, and lo per cent, after six months. The amended increases are 5 per cent., is per cent., and 10 per cent, respectively. Ihe addition of 20 per cent, to the income tax assessed at the schedule rates applies to all taxpayers. The reduction ot 10 per cent, to be made in respect of earned iueome is to be made after the 20 per cent, has been added.—Special.