Standard Values for Livestock

Manawatu Times, Volume 65, Issue 270, 2 November 1940, Page 3

Standard Values for Livestock

FARMERS CONSIDER MEASURE UNFAIR AIMED AT EXTRACTING HIGHER TAXATION Objection to the legislation requiring farmers to adopt fixed standard values for livestock was registered at yesterday’s meeting of the Wellington Central provincial executive of the Farmers’ Union in Feilding. The subject was referred to in a lengthy circular in which was set out several questions which had been asked of the Commissioner of Taxes and his replies thereto. These replies had been the subject of an examination by the Dominion secretary (Mr. A. P. O’Shea) of the union who, in representing the situation resulting from the compulsory operation of standard values, said that an exceedingly 6trong sense of injustice was being manifest throughout New Zealand which Mr. O ’Shea considered was quite justified.

It was stated that the Commissioner of Taxes had laid down that a farmer with less than £3OOO unimproved value who has been using for social security purposes standard values which were too low in relation to market values, must bring his standard values into line with the more reasonable values now required to be adopted for income tax purposes. Farmers had the option ot including their stock either at market values or at standard values. In cases where standard values are adopted a farmer may, at any subsequent time, be required to include the market value in his return and lie would then be lialble on any additional income arising through the change in value, Mr. J. B. S. Dudding (Marton) expressed the opinion tha/t t&e measure would catch a lot of farmers very unfairly. The chairman (Mr. D. G. Gordon) said that the position was not only un satisfactory but exceedingly complicated. He had understood the Minister of Finance to say that- standard values previously adopted and held to would not be interfered with, but from the Commissioner of Taxes’ letter it woule. appear that if those standard values were too low in the opinion of the Commissioner, the farmer would have to raise them.

Mr. D. D. Simpson (Hunterville) said that the point which -occurred to him was that the Commissioner of Taxes reserved the right to require standard values altered to market values. Who was to say what the market value ol livestock was? Mr. A. Howard viewed the measure with suspicion and suggested that it was an attempt to bring in all farmers for higher taxation. He likened the measure to the proposed Small Farms Amendment Bill which was ostensibly aimed at providing . machinery for settling discharged soldiers on the land but on examination appeared to aim at giving the Government control of all the land. The meeting unanimously decided to accord the strongest possible support to the action taken by the Dominion secretary of the Farmers’ Union in combating the proposed application of standard values for livestock. Farmers, it wa* stated, would find many surprises when they came to adjusting their values,