NO TAX REDUCTION

Nelson Evening Mail, Volume 80, 30 November 1945, Page 2

NO TAX REDUCTION

AMENDMENT BILL INTRODUCED

ALLOWANCE FOR DEPRECIATION ALTERATION OF EXEMPTIONS (From Our Parliamentary Reporter) Wellington, This Day. An increase in the provision for a special depreciation allowance on plant and buildings from 20 per cent, and power to publish the names of wilful tax evaders are the main features of the Land and Income Tax Amendment Bill introduced in the House of Representatives. The Bill makes no provision for any reduction in taxation, the Minister of Finance (Mr Nash) explaining that the House by passing the Land and Income Tax (Annual) Bill had already agreed to the taxation rates for the current year.

The Bill, said the Minister, gave justifiable relief to those who should have it in the interests of the country and in the main gave effect to the promises and statements made by the Government in the Budget. The Bill was read a first time.

The Minister said that provision was made for an alteration- of the exemption from £SO to £IOO for a wife and and similarly for a husband when the wif j was an income earner. The exemption for children was abolished and in the case of dependent relatives the special exemption was modified. British war pensions would be exempted from income tax in New Zealand, and the first £SO of trustees’ income would also be exempt. After dealing with other minor clauses in the Bill Mr Nash added that the major principle in the Bill was the allowance for depreciation. The Budget had provided for a 20 per cent, deduction over and above the normal depreciation allowance both for buildings and plant. It. was now proposed to give a 30 per cent, reduction in excess of the usual allowance for plant, equipment, and houses, dating from April las*. Ex. penditure incurred on plant or buildings since that date would qualify for the allowance. It was also intended to give relief from income tax, social security charge and national security tax where unduly low standard values of were adopted. Another clause would permit the carrying forward of losses although they may not have been incurred in business. He instanced the case of a man who might receive an income of £2OO from a property but in one year he might have to spend £SOO on the property thus losing £3OO. At present the £3OO loss could not be carried forward, but the Bill would alter that position.

The clause dealing with Ihe publication of names of tax evaders provides for the Commissioner of Taxes publish, ing from time to time in the Gazette the names of persons who after the passing of the Bill are convicted of tax evasion or who have been charged penal tax.

The lists are to specify the name, address and occupation of the taxpayer, particulars of the offence, when it was committed, the amount of income not disclosed or of the tax or charge evaded, and the amount of the penal tax or charge There is also provision for a copy of the lists being laid before both Houses of Parliament.