TAXATION

Nelson Evening Mail, Volume LVI, 18 July 1924, Page 4

TAXATION

COMMISSIONER’S REPORT

COMMISSION'S REPORT RECOMMENDATIONS

(From our Parliamentary Correspondent)

WELLINGTON, This Day

The Taxation Commission'a report tabled in the House last night makes the following recommendations, that legislation be passed instructing and empowering tlie Commissioner of Taxes when obtaining future income tax returns, to compel the individual to include in his return the whole of his income from all sources, and specifying the amount from each source separately, that the maximum rate of gradated tax Tfist be fixed at a level that it will not cause an outflow of capital from New Zealand. It would be advantageous to fix a rate which would cause the inflow of capital. This rate must be adjusted from year to year according to tbo financial requirements and circumstances, both within and without New Zealand. The gradation downwards should be on a scale that will enable the required sum to he raised, such graduation to be made in such a way as not to he oppressive on the taxpayer of small means. 'Tlie rate upon the undivided profits of companies should bo approximately half the maximum rate. If it is impossible, without undue hardship, to obtain the necessary revenuo from sources already mentioned, then revenue from these sources should be supplemented by a moderate flat tax on companies assessed upon their total profits. In addition to the tax on their undivided profits, companies registered outside New Zealand should be taxed on their total incomes derived from New Zealand at the rate at which companies registered in New Zealand are assessed on their undivided profits and should also be liable, in respect of such incomes, for any flat rate company rax. The incomes of pastoral tenants should be made subject to tax and this should be done immediately. The present graduated land tax should be abolished and income tax should be paid in respect of income from land as part of the taxpayers income. Any loss of revenue brought about by the adoption of the last recommendation should be made up by a flat rate of land tax on all unimproved land values over £2OOO, with a rate below £2OOO of two thirds of the rate above £2OOO. The present- £SOO and mortgage exemptions should be continued. It is thought that id in Tiie pound up to £2OOO and) id in the pound beyond that amount, will produce the sum at preseht required. .In assessing income tax, no exemption should Tie allowed in respect of“' this land tax'. Public body trading concerns should be taxed as private concerns.