THE CUTS BILL

Grey River Argus, 30 April 1932, Page 8

THE CUTS BILL

Further Debate WELLINGTON, April 29. The House concluded the committee stage of ‘the National Expenditure Adjustment Bill ait 1 a.m. to-day. Further amendments to the Bill were introduced by Governor-General’s message. Mr Forbes said that these related to .'the latter p'art of the Bill, and were mainly machinery in nature. The clause dealing wtih limitation of application of rent and interest reductions was amended to exclude Crown leases, and rentals in cases where interest or rent does not represent a return of five per cent. On the capita] value. The Minister of Lands said that there were thirty thousand Crown lessees and tenants, and the payments totalled £1,889,196 annually. A flat reduction of twenty per cent, would involve a loss of revenue to the State amounting to £377,444 which would have 'to be made up by the general tax-payer. O n the other hand, the loss of revenue would be only £3l 372 if the reduction applied only in cases where the charge exceeded five per cent. The Minister pointed out that i in some cases Crown rentals were based on four per cent, return on capital value, and were subjected to deductions which eventually brought them down to 2.9 per cent. The clause was passed as amended. Under the Bill debentures and other securities issued in respect of investments of monies belonging to the three State superanuation funds are exempted from stamp duty, likewise investments held by the Post Office or State Advances Office.

Securities which are subject ,to reducl tions of interest under part three of the bill, are also exempted from stamp duty. Stamp duty provisions are made to apply not earlier than seven days after the p’assing of the Act. anj for the purpose of avoidance of minor hardships, the rate of duty is altered from 6d in 5s to 3d in 2s 6d or part of 2s 6d. A new proviso is added that if thc holder of interest coupons, or warrants, in respect of the same loan presents them simultaneously for payment, duty is to be assessed on the total amount of interest involved. This is designed to prevent hardship's trat would arise if each interest coupon were separately assessed

One new sub-clause provides for assessment on stamp duty on interest in cases where debentures are redeemable by payments, consisting partly of principal and p’artly of interest. The Minister is enabled by another amendment to refund duty on securities held by people whose total annual income does not exceed £lOO. Further, a taxpayer is given the right to have deducted from his assessable income for income tax purposes, and amount paid by him as stamp duty. Refunds of stamp' duty made to a rating authority must be applied in the reduction of rates.

The period wi-thin which rates of interest payable by building societies may be regulated by Order-in-Council is limited to March 31, 1935. Similar to the provisions in respect to savings banks and trading companies. investment societies are required to make periodical returns of deposits held by them, the rates of interest p'ayable, their a sse ts and liabilietc.

Definition of the term “trading company” is extended so as to ensure that all persons, or association, that accept money on' deposit will furnish required returns. Trading companies are required to furnish anually, instead of quarterly, as originally provided, a statement of assets and liabilities.