HOW THE TAX IS APPLIED.

Manawatu Standard, Volume XLII, Issue 1015, 17 November 1917, Page 4

HOW THE TAX IS APPLIED.

The discussion already referred to has sufficed to clear the atmosphere somewhat, and the Commissioner oi Stamps lias come to light with a pronouncement that may be regarded as setting the question, so far as club subscriptions are concerned. "Having considered the question very fully," we are told the Commissioner "has come to the conclusion that club subscriptions lo such institutions as bowling, golf, or tennis clubs are not liable to duty, but it' at any time admission is charged to persons wishing to be spectators at any of these games, the admission charged will be liable to the new duties." Conflicting statements are made in regard to entertainments such as skating, dances, card parties and the like, to which persons pay for admission in order to take part in the pastime for which the entertainment has been promoted. The Dominion, which elicited the statement front the Commissioner of Taxes in regard to club subscriptions, says that "no definite pronouncement has yet been made as to the policy of the Department in regard to the taxing of such entertainments, but it is probable that the taxwill not be levied on charges for admission to such entertainments. If they are private affairs, promoted by a limited number of people for their own amusement, the expenses being defrayed bv subscription, it is probable that tha tax will not be charged upon the subscriptions, as the persons promoting and taking part in such pastimes are- in much the same' position as members of sports' clubs."' l'he local police have, however, apparently received instructions to see that the tax is paid in respect of admissions to all "dances, concerts and euchre parties," etc., which are stated, on their authority, to "also come within the scope of the Act," and the promoters of such functions have, therefore, the duty thrust upon them of communicating with the Deputy Commissioner of Stamps, at Wellington, prior co such entertainments taking place, so that the taxing arrangements may be made. Tliis, of course, is only necessary in cases where the charge for adnvssi >n is over sixpence. In view of the heavy penalties the Act imposes in cases where tlu> management, and those taking part in such "entertainments," fail to make provision for the payment of the duties, it would be foolish to ignore the notification which the police authorities have asked lis to make on the subject. As defined by the finance Act the Word "Knit rtaiiuiu nt" includes ' .my exhibition, performance, amusement, game or sport to which persons are rdm'ttcd for payment.'' and with certain exceptions, the Amusement Tax is chargeable for admission to any such entertainment, the exceptions bc.ug in cases where the whole takings are devoted to philanthropic or charitable purposes without any charge on tho taki.igs ior any expenses of the entertainment, or where- the entertainment is of a wholly educational character, or is exclusively i\>v the benefit of any school or other educational institution or institutions not established or conducted for profit; or, yet again, where the entertainment is provided for partly educational and partly scientific purposes (but for no other purpose) by a society, institution. or committee not conducted of established for profit."