TAXATION BILL

Hawera Star, Volume XLVIII, 24 September 1924, Page 5

TAXATION BILL

INCREASED MORTGAGE EXEMPTION. PASTORALISTS PAY INCOME TAX. (Bv Telegraph.—Special to Star). WELLINGTON, Sent. 23. The amendment to the Land" and Income Tax Act was introduced by Governor s message to-day, and was ex.aaied by the Premier, He said the hill was principally of a machinery character, but- there were two or three important- clauses. One dealt with the change recommended by the PublicAccounts Committee in the annual Taxing Bill reducing the land tax deduction to 5 per cent. With this he • ojghly agreed. It was accompanied ; proposal that what people were in the habit of calling a land tax on mortgages would be varied. The present exemption in regard to mortgages was up to £4OOO, gradually tapering off to £BOOO. The alteration provided for in the Bill would make the minimum exemption £IO,OOO, and allow it to taper off at £15,000. There were certain safeguards, but this clause would be of tremendous benefit to the ordinary working farmer who was working imdgr a mortgage, and who was working under a mortgage, and felt the injustice of being taxed on money lie owed. PASTORAL LESSEES TAXATION. Another provision, said the Premier, related to income tax on pastoral leases and small grazing runs which had been introduced last session. It was not agreed to at tlie time, and be felt that a mistake was made though not intentionally. It was proposed to restore the income tax in this class of landowner, placing him in the same position as prior to the war. These lands paid little or no- land tax, as the interest of the tenant was small. Another clause which had been, asked for would provide that where there were arrears of land tax in respect of property which was sold, the arrears would he charged on the land, but the purchaser would have to be notified of the position. Mr Sidey asked when the Annual Taxing Bill would be considered.

The Premier replied that he could give an answer to-morrow. In addition to the amendments explained by the Premier, the Bill contains a clause which makes a lessee of native land liable on behalf of ’he native owner for land tax. Another provision will enact that any increase in the valuation on the reconstruction of a company will be /regarded as included in the profits. Where a lump sum is or id by a firm to an employee as a bonus oil oension on retirement only 5 ner cent, of that sum is to be regarded as income for taxation purposes. Any pension granted in Great Britain or the British Dominions in respect to the European war is to be included in the list of incomes wholly exempt from taxation.