TAX EVASION

Grey River Argus, 12 March 1938, Page 4

TAX EVASION

To be Stopped

NEW BILL BEFORE HOUSE. (From Our Parliamentary Reporter 1, WELLINGTON, March 11. A good deal of tax evasion will be stopped by the provisions in the Finance Bill (No. 2) which was passed by the House of Representatives tonight. The Minister of Finance (Hon. W. Nash) explained that under the existing procedure companies had changed the date of the end of their financial year to June 30, and for some unexplainable reason, the Commissioner of Taxes had taken the income derived during the year ending on that date, the result being that the companies had got away with company tax of three months. In one case profits amounting to £14,445 were not included, and the company “beat” the Government for £5517. Rt. Hon. G. W. Forbes: What was the Commissioner doing?

Hon. W. Nash: I don’t know. I was not in charge then. The Commissioner accepted the annual return. The position now is that if we can recover that money we will. In another case, said the Minister, profits, totalling £12,763 paid no tax, and the loss to the State was £3733. One country got away with a whole year’s profits.

Mr Nash said that efforts were now being made to recover the money which was due to the State. The leader of the Opposition (Hon. A. Hamilton) congratulated the Minister on the Bill. He said there were always people who tried to evade taxation, and the Minister was quite justified in tightening up the laws where necessary.