LAND AND INCOME TAX.

Lyttelton Times, Volume LXXX, Issue 10106, 3 August 1893, Page 6

LAND AND INCOME TAX.

EJSPOET OP 'THE COMMISSIONER, [FROM OU» SPECIAL.CORRESPONDENT.] , WELLINGTON,. August 2.

An interesting report, by Mr. Crombio, Commissioner of Taxes, on the results of the Land and Income Tax system, has been presented to .the House, bringing the figures down to June 30 last.. This shows tha tctal collected under the Land and Income Tax-Aot to be £374,088, contributed Uy 15,326 paraonß and 488 Companies. The remits are compared with those attained nader .the Property tax ini 1839,. which were 'fonow’: 25,841 persons and 486 companies contributed . .8354,167. (The amount realised under the ordinary Land tax js £232,581; graduated Land tax £67,880, and Income tax £78,627). It will be seen that the tax assessed to persona under the Land and. Income tax system is £3913 less than the Property tax assessed to persons, and the tax assessed to companies is £20,834 more than the Companies were assessed for under the Property tax ; the total result of the Land and Income taxes exceeding the result of the Property tax by £19,931. The report proceeds to state as follows: w“The attempt .to collect Income tax without having branch offices in the three principal cities may be said to be still under trial, and it may yet be found necessary to have resident officers in Auckland, Christchurch and Dunedin. Nothing will bftdohP in this direction until the present system.- hes be&n further tried, and the Chief- Postmasters throughout the Colony will in the meantime act as officers for the Department. To a ‘ certain extent in Income tax matters some , of the Chief Postmasters have already given valuable assistance. Introducing the Income tax on ft new system was inevitably a difficult task, and the taxpayers had necessarily many doubts as to the manner in which returns should be compiled. The amount collected up to June 30,£73,027, must nob be accepted as final, though at present a reliable estimate cannot be-.. given as to the additional tax likely to be received. The Amending Land and Income Assessment Bill, which will be introduced shortly, will contain provisions setting at rest some doubts as to the interpretation of the Act, and further-powers will be asked to be granted to , the Commissioner to obtain information. respecting the completeness and accuracy of returns of income. It has been found necessary to obtain such powers as regards both Land and Income taxes.”

Alter reference to the smallness of the

the ,large exemption of i!300, end to that m fxemption applying to each partner,.and lithe classification of taxpayers under a new ’jyiteia by occupation or designation, and

of Companies according to the business carried on, the results being contrasted with those of the last Property tax assessment in 1888, the report proceeds as follows

“ Under both systems the largest contribution is by graziers, sheep-farmera, dairyman, &c., that is, by owners of country lands, the total for the Land and Income tax being £89,341, and for the Property tax £81,544. The number of Property tax payers was 8611, and the number of Land tax payers is 4760, who aro assessed for ordinary Land tax, £60,203; 766 are assessed for graduated Land tax, £28,015, and 07 are assessed for Income tax, £1123. In considering these and other results it should be remembered that some who pay Graduated tax do not pay Land tax, but it may be taken to bo the rule that land taxpayers include those who pay the Graduated tax, and the number of the latter is therefore omitted in these comparisons. Further, soma of those who pay Land tax also pay Income tax. Land Companies (15) were assessed for Property tax £13,0-10, and Land Companies (19) were assaseed for Laud tux £16.579, and Graduated t«x £15,233, which, with Income tax £390, makes up £32,207, which shows an increase of £20,158 in tho present, as compared with tho lata system. Loan Companies contribute £30,023 for Land and Income tax, ftgainat£3S,l47i'or Property lax; Life Insurance Companies £11,790, against £11,749; Fire and Marine Insurance Companies £B379,against£6Ss2; banka £10,184, against £14,244; Mercantile Companies £16,302, asnunst £9384; Manufacturing Companies £7549, against £3784; manufacturing and mercantile £5622, against £3807 ; coalmining £1435, against £1498; gold-min-ing (23) £2735, against (113) £2545. Building Societies pay £1987, and were not assessed for Property tax; Church Property Corporations and Trusts £2736, against £2046. lu the amounts paid by persons, tho table shows that, as the real totals contributed in various classes under tho two systems do not differ very materially, excepting in the class including ‘'working storemen, mechanic?, labourers, shepherds, miners, sailors, &c.,” 2242 paid Property tax £4053, and 249 paid Land and Income tax £543. Further interesting details are given in tables attached to the report.