Juggled Dates to Save Income Tax

Manawatu Times, Volume 63, Issue 60, 12 March 1938, Page 5

Juggled Dates to Save Income Tax

PARLIAMENT OUT-MANOEUVRES COMPANIES Per Press Association. WELLINGTON, Last Night. In the House urgency was accorded the passing of the Finance Bill (No. 2) on the motion of the Minister c .* Education, Hon. J. Fraser. Moving the second reading of the Bill, the Minister of Finance, Hon. W. Nash, outlined the various provisions in the Bill, stating that the clause relating to the fixing of dates of an annual balance for income tax returns from companies, would provide a formula which would prevent quite a lot of income tax evasion. As the result of some companies consistently altering the dates on which their financial year ended, Mr. Nash explained, they had evaded the tax for some months and in ono case a company had evaded tax for a whole year. The amounts of tax thus evaded came, in one case, to over £6OOO and in another to over £7OOO.

The leader of the Opposition, Hon. A. Hamilton, said there was nothing of a very contentious nature in the Bill and Mr. Nash might be congratulated in this respect because usually a measure of this nature, there was something “sticky.” Ho thought the Minister was quite justified in closing up any avenues by which income tax might be evaded. He said thero were always people who would try to evade taxation but his side of the House believed with the Government that taxes levied by Parliament should be paid. Hon. J. G. Cobbe said there were cases of extreme hardship in taxation and he was glad provision had been made for certain cases in the Bill. Mr. H. S. S. Kyle (Opp.-Riccarton) stated that there were cases where penalties were incurred through misadventure and some leniency should be allowed in such cases.

The Dill passed the second reading and entered the committee stages which were passed with no < cussion. The Bill then pased the third reading and the House adjourned at 10.40 until 10.30 a.m. to-morrow.