TAXING BILL

Hawke's Bay Tribune, Volume XVII, 31 August 1927, Page 5

TAXING BILL

INTRODUCED IN HOUSE PRACTICALLY SAME AS LAST YEAR. INCOME TAX GRADATIONS. (Special to “Tribune)). Parliament Bldgs, Aug. 3. The Taxing Bill introduced into the House of Representatives late last night by Governor-General’s message, is the same as that of last year, except with regard to the rates of income tax payable on incomes derived otherwise than from debentures. Under last year’s act the minimum tax on such income was fixed at 7d in the £ and maximum at 4/6 in the £. Between these extremes a graduated scale which inceased fo every £1 of income was fixed.

This year’s bill preserves the same limits of 7d and 4/6 respectively, but provides a series of finer gradations in the scale between these limits. An important amendment to the provisions governing special income tax exemption up to £3OO, is contained in the Land and Income Tax Amendment Bill. Under the present law, the maximum deduction of £3OO is reducible by £1 for every £1 of assessable income in excess of £6OO, so that exemption is graduallydiminished and disappears entirely with an assessable income of £9OO. A clause provides that this process of reduction shall commence with an -income in excess of £450; from £450 to £750, the proposed reduction in the amount of the exemption is £1 for every £2 of income in excess of £450; from £750 upwards the reduction is at the rate of £1 for -£l, until again the exemption disappears at £9OO. DEBENTURE TAX. By section 116 of the Land Income Tax Act, 1923, every company that has issued debentures is made the agent of its debenture-holders for the making of returns and the payment of debenture tax. It is proposed to extend to the companies the privilege that was extended to local authorities in 1921, that is, that a company may rid itself of its statutory obligation to make returns and pay tax on behalf of its debentureholders by supplying to the Commissioner of Taxes certified particulars as to the debentures and their holders, sufficient to enable him to make a personal assessment.