STOCK DEPRECIATION.

Manawatu Times, Volume XLII, Issue 1809, 6 May 1921, Page 4

STOCK DEPRECIATION.

In the course of an address at Napier this week, Mr 1). G. Clark, Commissioner of Taxes, stated that a revived scale of depreciation in regard to plant was shortly to be issued. Hitherto 5 per cent, had been allowed on plant and machinery that was power driven, and the proposal at present was to make depreciation 5 per cent, on all plant. On buildings 2 per cent, would be in future allowed on brick and stone (originally 31 per cent.) on tho original value, and 3 per cent, instead of 4on wood and iron. This reckoned the life of a stone or brick building at 50 years, and that of a wooden building at 33. No depreciation that was not written off would be allowed. The taxpayer would have the alternative of getting an allowance as he incurred expenditure for replacement. While there was a reduction in the rate of tax to be charged, it was expected that tho provisions making it difficult to avoid payment would in the end bring ia a greater return than at present.