LAND AND INCOME TAX.

Lyttelton Times, Volume LXXVI, Issue 9492, 14 August 1891, Page 6

LAND AND INCOME TAX.

THE NEW CLAUSES OF THE BILL. ■ [from our own correspondent.] WELLINGTON, August 13, The Bill, as amended in Committee of the whole, is just out, and I take the opportunity of sending you all the new clauses, in order that your readers may see at. a glance the full scope of the Committee’s additions. Regarding objection to assessment. The new sub-clauses are :—Upon the completion of the assessment rolls the Commissioner shall cause to be given to each person or Company whose name appears thereon as liable to taxation, a notice in writing of the making of the assessments. Such notice shall be in such form and contain such .particulars as may be prescribed, but the omission to give any such notice shall not invalidate any assessment. The next provision deals with the power to purchase land at the value stated in the return in certain events, provided that the person or company affected shall have the right to appeal to tha Board of Review to determine such fair, actual value. In the graduated tax on land portion of the Bill the following is added vided that, in the case of any person who has been absent from, or resident out of the Colony for a period of three years or over that period prior to the passing of the annual Act imposing tbe tax, the scale of taxation set forth in this schedule shall be increased by 20 per cent in each case where it is applicable, and all graduated tax, as aforesaid, shall be assessed and levied on the amount of the assessed value of the land, less all improvements thereon. Improvements include houses and buildings, fencing, planting, draining of land, clearing from timber, scrub or fern, laying down in grass or pasture, and any otber improvements whatsoever, the benefit of which is unexhausted at tha time of valuation.

In regard to the income of companies, the following new provisions are added:— Provided that every person or Company engaged in business as owner or charterer of shipping .shall be assessed for taxation union its income on such terms and conditions as may be prescribed by regulations ; and such assessment shall be subject to all rights of objection and review as 1 provided by tbia Act. Provided also that in the case of Insurance Companies the regulations may prescribe the means for determining what portion of the income of such Companies shall be deemed to bo the income of such Companies in New Zealand, and such income only shall be liable to be assessed for Income tax under this Act.

The following is a new paragraphln any case where a Company has, at any tithe heretofore, borrowed, or shall at any time hereafter, borrow money on debentures, such Company shall be deemed to be the agent of every holder of such debentures, whether such holder be or be not resident in New Zealand, and such Companv shall be liable to pay tax accordingly on behalf of every holder of such debentures, and shall be entitled to deduct in each year from any instalment of interest payable by it upon the amount of such debentures any tax so paid, whether coupons for such interest have been issued with such’debentures or-not, but no such debenture-holders shall be allowed any deduction by way of exemption from assessment. 1

Among the “ miscellaneous,” as to asssessment of income, is the following new paragraph : Any person who has effected, or may hereafter effect, an insurance bn his' own life, for his own benefit, or for the benefit of his wife and children, or one or some of them, with any Company or Association carrying on business of life insurance, shall be entitled to deduct from his income as an outgoing the amount of premiums paid in' any year in respect of such insurance, provided that no greater deduction than ASO shall be allowed in any year in respect of all premiums paid for such insurance.

The principal alterations are s The exemptions of public school grounds up to ten acres has been struck out, and fifteen ■acres substituted. The ground, as well as the meeting place of Agricultural Societies is exempt. Friendly Societies’ meeting places or grounds ate not exempt. Income from land, or the use or produce of land, or from mortgages of land, is not exempt. In regard to “ improvements,” the proviso that the effect or benefit of such improvements shall be visible is struck out. The following also is struck but i—Proyided that in the case of the draining of land, clearing from timber, scrub or fern, and laying down in grass or pasture, no deduction shall be allowed for such improvements or such part thereof as shall have been made or effected more than ten -years prior to the date as at which the assessment is made.

In the part of the Bill dealing with the income of Companies, the following is struck out:—lu any case where a Company has at any time borrowed money on debentures from persons not resident in New Zealand, such Company shall be deemed to be the agent of all such deben-ture-holders, and be liable to pay tax accordingly, and every such Company shall have the right to recover from the dabenfcure-hoideri any tax so pajd, but no such debenture-holders shall be allowed any deduction by way of exemption from liability to each assessment.