LAND AND INCOME ASSESSMENT BILL.

New Zealand Herald, Volume XXVIII, Issue 8669, 11 September 1891, Page 3 (Supplement)

LAND AND INCOME ASSESSMENT BILL.

The following is a synopsis of the now Taxation Bill. In cases where the side-note sufficiently expresses the clause, we only give it. In other cases we print the entire clause ;— ..

4. Power to appoint.Commissioner and Deputy Commissioner. 5. Powers of Deputy Commissioner. G. Powers and duties of Property-tax Commissioner to vest in Commissioner under this Act.

7. Power to appoint.other officers. 8. Secrecy to be maintained. Oath of office.

9. Penalty for contravening intent of oath. 10. Regulations for administration of Act to be made by Governor in Council. 11. Regulations to be gazetted, and to have force of law. 12. Governor in Council may extend time for doing acts. . 13. livery company carrying on business in New Zealand shall at all times be represented by a person residing in the colony, who shall be duly appointed by the company, or by some agent or attorney having power to appoint such person for the purposes. of this Act, and the following provisions shall have effect:—(l) Such person shall be called the "public officer" of the company for the purposes of this Apt. all d shall be appointed within three months after the commencement of this Act, or 'after the company shall commence to carry on business in Hew Zealand, whichever shall last happen. (2) The office of public officer shall be kept constantly filled by making fresh appointments thereto as may be necessary, and no appointment shall be deemed duly made until after notice thereof in writing specifying the name of the officer, and an address for service lias been given to the Commissioner. (3) Every company failing or neglecting to make an appointment to the office of a public offieor when accessary shall be liable to a penalty not exceeding fifty pounds a day for every day during which such neglect shall continue. (4). Every public officer shall be answerable for the doing of all such acts, matters, or tilings as are required to be done by virtue of this Act in order to the assessment of the company under this Act, and paying the tax payable in respect thereof, (o) Everything done by any such public officer, which ho is required. to do in his representative capacity, shall be deemed to have been done by such company ; and any service made at the address for service, or on the public officer, or upon any.person acting or appearing to act in the business of such company shall be sufficient for all the purposes of this Act,and ii< shall not in any case be necessary for the Commissioner to prove that any such officer or person is or was the public officer of the company or acting in its business. (0) The absence of, or non-appointment of, a public officer shall not exonerate any company from the necessity of complying with any of the provisions of this Act; but every such company shall be liable to the provisions of this Act as if there were no requirement to appoint such officer. 14. Every agent for every person permanently or temporarily absent from or not resident in the colony and every trustee (1) shall be answerable for the doing of all such acts, matters or things as arc required to be done by virtue of this Act in order to the assessment of the land, mortgage, or income which he represents, or which is the subject of his trust, or which is received by him or comes to his hand, and for ..the paying the tax in respect thereof: (2) is hereby authorised to recover from any person in whose behalf lie is compelled to pay any tax, the amount so paid by him : (3) Is'hereby authorised and required, from and after the thirtyfirst day of March ensuing next after the commencement of this Act, to retain, from time to time, in each year, out of any money which shall come to him in his representative character, so much as shall be sufficient to pay the tax for the then current year in respect of any land, mortgages, or income subject to such tax, estimating the amount thereof at the same, amount as was paid in respect of the same subject or matter in the ■year: then last preceding; and is hereby indemnified for all payments which he shall make in pursuance of this Act: (4) Is hereby made personally liable for the tax payable in respect of any land, mortgage, or income if, while such tax remains unpaid,(a) He shall alienate, charge, or dispose of such land or mortgage; or {f>) Dispose of any fund or money which shall come to him in his representative character ; and shall not be otherwise personally liable for any tax imposed upon him under this section. (5) The Commissioner or any other person or authority empowered under this Act, shall have such and the like remedies against all laud or other property of any kind vested in or under the control or management of any agent or trustee as he would have against the land or property of an (individual, and in as full and ample a manner. (6) For the purposes of this Act " Trustee " includes executor, administrator or guardian, committee or receiver, the Public Trustee, and any person having or taking upon himself the possession, administration, or control of land or income affected by any express trust, or having by law the possession, control, or management of the land, mortgage, or income of a person under any Ic/al disability.

15. Subject to the provisions of this Act taxation shall bo levied at stated rates in the pound sterling, in accordance with an annual Act to he passed for that purpose, up-hi —(l) All land situate in New Zealand, and on every mortgage of land in the manner provided in the Schedules A and B to this Act; (2) All income derived or received in New Zealand from business, employment, or emolument, in the manner provided in the several Schedules C, I), 15, and F, to this Act. 1(5. Land owned and income derived or received as hereinafter mentioned shall be exempt from taxation under this Act, subject, however to the provisions hereof(l) All land owned by any person or body corporate or unincorporatc, and used or occupied by such person or body solely for any of the purposes' hereinafter mentioned (a) A place of worship, or a place of residence for the clergy or ministers of any religious body ; (ft) any public school established under the Education Act, 1877, and all land and buildings used for any school which is not carried on exclusively for pecuniary gain or profit, but so that not more than fifteen acres be used and occupied by or for the purposes of any one such school; the _ site of any university, or college, or school incorporated by any Act or Ordinance, or the site of a public library, athenieum, or mechanics' institute, or any public museum, or any school of mines ; ('/) a public cemetery or burial ground; (e) the ground or place of meeting for any agricultural society, being the property of the society; if) A place of meeting for the purposes oi a friendly society, or or a Masonic Lodge, or of any building society registered under the Acts in force relating to building societies {•■/) public charitable'institutions eonstitutedjunder the Hospitals and Charitable Institutions Act, 1885, and charitable institutions not carried on for gain or profit; (h) public gardens, domains, or recreation or other public reserves not occupied by a tenant, and all public roads or streets ; (<) owned and occupied by Maoris only, and not leased to or occupied by any person other than the Maori owner; (.?').any public railway, including the land occupied and used us permanent-way, and for yards, stations, sheds, and all buildings used for the purposes of traffic only, but not further or otherwise. No lands vested in Her Majesty or in the .•New Zealand Railway Commissioners, nor any land vested in any corporate or other body for the purposes of or in relation to local self-government, or for any public educational or public charitable purpose shall be liable to taxation under this Act, except where there is a tenant or occupier liable to pay such a tax. ('2) All income derived or received in the following manner (a) The general revenues received by or 011 behalf of Her Majesty the Queen in New Zealand ; {/>) by the Governor of the colony, so far as respects the emolument of his office as Governor : (c) the revenues received bv any County Council, Borough Council, Town Board, Road Board, Harbour Board, public university, or public school, Education Board, School Commissioners, Licensing Committee, and every other_ local authority receiving revenue of any kind for the purposes of or in relation to local self-govern-ment; (d) by friendly societies and building societies, and by all public bodies and societies not carrying on any business or not being engaged in any trade, adventure, or concern for the purposes of gain to be divided among the shareholders or members thereof; .(e) By the owner or occupier of land in New Zealand, or from the use or produce of such land derived by such owner or occupier, or from mortgages of such land, cxaept where otherwise specially provided. 17. Every person and company shall be liable for the payment of the whole amount of tax assessed upon land and mortgages, and upon income owned by or belonging to or received by such person or company, subject to the following provisions and terms of this Act(l) Returns shall he made to the Commissioner as prescribed for the purpose of enabling assessments to be prepared—(a) As to land and mortgages, triennially by every person and annually by every company ; (b) as to income, annually by every person and company; (c) the first, year in which assessments shall be made in each of the above cases shall commence on the first day of April, one thousand eight hundred and ninety-two, but nothing herein shall prevent the Commissioner from requiring further or fuller returns at any time or as at any date, in such manner as may lie prescribed. (2) 1 The Gommissisoner shall cause assessments ' to be prepared at such time or times and in

such manner as shall _be prescribed for the purpose of ascertaining the amount upon which tax'shall be levied under this Act, and such assessments shall be entered in rolls and registers in accordance- with regulations. (3) Every agent for every person permanently or temporarily absent from or not resident in the colony, and every trustee, shall be assessed separately in respect of any land or mortgage or income for which lie is agent or trustee, and shall be chargeable with the tax payable in respect thereof in the same manner as if such land, mortgage, or income were his own. And he shall be assessed in respect thereof in his representative capacity, and each such assessment shall be kept separate and distinct from his individual assessment. (4) If a, mortgagee of land is not resident in. New' Zealand and lias no known agent, the mortgagor shall be deemed to be the agent of the mortgagee, and liable to be assessed for and pay tax, subject to the provisions • hereinafter contained. (5) Joint tenants, tenants in common, and trustees in respect of the same interest shall be assessed jointly, and shall be. severally and jointly liable for the due furnishing of returns of the land or any mortgage they own jointly or in common, or any income receivable by them, and for the payment of any tax due thereon, and be liable in respect of any default therein respectively. IS. Money received, and money, land, or mortgages acquired for investment in colony between certain periods to be liable to tax. 19. Notice of every assessment to be sent to persons affected. Omission of notice not to invalidate assessment. How objections to be made to assessment. What Constitutes assessment-roll or register. '20. Boards of Review to be appointed. 21. Powers and duties of Boards. 22. Rolls and registers to be evidence. Returns made by persons or companies to be deemed duly made. Irregularity not to vitiate assessment. 23. Alterations may be made by Commissioner. Hearing of objections thereto. '24. Notice of due date of tax to be given. 25. Tax to be recovered by Commissioner. Procedure in local Courts. 26. Power to the Commissioner to enforce assessments in certain cases.

27. Provision if too little tax has been paid. 23. Provision if tco much tax has been paid. 29. {Statutes of limitation not to bar remedy. 39. Power to purchase land at value stated in return in certain events. 31. If any person, at any time during a triennial period, shall be dissatisfied with the amount at which the whole or any portion of his land is assessed, he shall be entitled to call upon- the Commissioner either to reduce the assessment to the sum at which it was valued in the return of such person, or else to purchase such land at the sum at which the same was valued in such return; and the Commissioner shall, at his discretion, reduce the assessment accordingly, or shall, upon obtaining the consent of the Governor in Council, and upon having the land duly conveyed or assured to the Crown, purchase the same as hereinbefore provided. 32. Colonial Treasurer to pay purchase money. 33. Land acquired may be sold, etc., as directed by Governor in Council. 34. Summons to unknown owner may be posted on land. 35. Judgment may be given against owner. 30. Remedy against tenant or mortgagee if owner fails to pay. 37. Person paying tax may recover from person liable. 38. Remedy in case of persons under disability. 39. Married women liable to tax. 40. Every covenant or agreement heretofore made or hereafter to be made between landlord and tenant, mortgagor and mortgagee, or between any other persons, altering or attempting to alter the nature of the estate or interest in any land or mortgage for the purpose of defeating or in any other manner evading the payment of tax imposed under this Act, or which shall be in any manner contrary to the true intent of this Act, or calculated to prevent its operation in any respect, shall, so far as regards any such covenant or agreement, be void and of no effect as between the parties thereto. 41. Tax to be a first chargc on land. 42. Commissioner or officers may appear in proceedings. 43. If any person, whether or not liable to taxation under this Act—(l) Being within or having an agent within the colony of New Zealand, fails or neglects to furnish, on or before the prescribed day, any return required by, or under this Act, or, within a reasonable. time, any further or fuller return required by the. Commissioner, unless such person shall prove that such failure or neglect was not wilful; (2) knowingly and wilfully makes or delivers any false return, or makes any false answer, whether verbal or in writing, in relation to his land, mortgages, or income, or any matter or thing affecting his liability to or exemption from tax ; or (3) by any falsehood, wilful neglect, fraud, art, or contrivance whatsoever used or practised, or by or under any instrument made, signed, executed, taken, or received, evades, or attempts to evade assessment of any land, mortgage, or income, whether liable to taxation or not, or the payment of any tax under this Act,—every such person shall, on proof thereof before any two justices of the peace, be assessed and charged treble the amount of the tax of which such person has sought to evade the payment, in addition to any tax f >r which such person would have been otherwise liable; and every such person shall also be liable to a penalty of not less than five pounds nor more than one hundred pounds. Any person aiding and assisting, in any manner whatsoever, to commit any offence within the meaning of this section shall, upon conviction, be liable to a penalty of not less than five pounds nor more than fifty pounds. The word " person " in this section includes the public officer of a company, and the agent or trustee of any person or company. 44. Procedure to recover penalty. 45. Penalty for obstructing officers. 46. False declaration punishable as perjury. 47. Procedure to recover penalties. 4S. Offences may be prosecuted within three years. SCHEDULE A. (1.) Tim Ordinary Tax on Land.

1. Every person and company being the owner of land shall be liable to tax in accordance with this Act, and such tax shall be assessed and levied upon the actual value of such' land; but the value of improvements upon all land owned by any person or company up to £3000 shall be deducted from such assessed value, and any mortgage then due or owing upon such land shall also be deducted from such value. " Actual value" means the capital value for which the feesimple of land with all improvements (if any) could be purchased for cash : " Improvements" include houses and buildings, fencing, planting, draining of land, clearing from timber, scrub, or fern, laying down in grass, or pasture, and any other improvements whatsoever, the benefit of which is unexhausted at the time of valuation.

2. When the assessed value of all the land of any owner, less the value of improvements thereon up to three thousand pounds, and the amount due or owing on mortgage as aforesaid does not exceed one thousand five hundred pounds, there shall be deducted by way of exemption a sum of five hundred pounds, after which the amount of such exemption shall diminish by one pound for every two pounds that the assessed value of the property increases, so as to leave 110 exemption 011 assessed values of more than two thousand five hundred pounds : Provided that only one exemption shall be allowed to an owner of land when the value of such land and the amount due or owing to him 011 mortgage do not together exceed two thousand five hundred pounds, but if the assessed value of such land and mortgage, less deductions, shall exceed two thousand five hundred pounds then no exemption shall be allowed. Provided, further, that where the owner of any land or mortgage which does not produce a larger income than one hundred and twenty pounds per annum shall be incapacitated by age, illhealth, or other cause from earning further income from business or employment, a further exemption, which, together with the sum of five hundred pounds hereinforc mentioned, shall not exceed two thousand pounds, may be allowed to such owner by the Commissioner, on his being satisfied that the payment of tax in full would entail hardship on such owner. 3. Purchasers of Crown lands on credit liable to tax. 4. Leaseholds liable to tax. Apportionment of deduction for improvements. 5. Exempt lands in hands of tenants liable to tax. 6. Occupiers of land for mining purposes liable as upon income from business. (2.) The Tax ox Mortgages. 1. Every person or company other than a banking company being a mortgagee of land shall be liable to taxation in respect of every mortgage held by such mortgagee, and every such mortgage shall be assessed as if it were land, but at the actual value of such mortgage to the mortgagee; and, if any difference shall arise as to such value for the purposes of this Act, the same shall be decided by the Commissioner in such manner as may be prescribed ; and a mortgagee shall bo entitled to the exemption of five hundred pounds hereinbefore provided for but not further. 2. No mortgagee shall be entitled to exemption from tax by reason only that the land included in such mortgage is exempt from taxation. 3. No mortgage shall be liable to the graduated tax imposed upon land under Schedule B to this Act. "Mortgage" means any charge whatsoever upon land, or any interest therein, duly registered or recorded in the manner required by law against or in respect of such land or interest, and whether created by deed,

will, or any other instrument or in any other manner. Any owner who may be called upon to pay the on account ot" land upon which any debt may be secured by deed may call upon the holder of such deed, not "being a. banking company, to register the same as a mortgage. In the event of such holder neglecting to register as aforesaid he shall be held liable for his proportion of the tax due 111 respect of such laud as if his security had been a registered mortgage, "Mortgagee" includes the person or company entitled to a mortgage or any part thereof and to receive the interest or any part thereof payable in respect of any mortgage. SCHEDULE B. Tub Graduated Tax on Land. In addition to the tax imposed under Schedule A, when the assessed value of land, after allowing for all improvements thereon, is of the value mentioned in the first column of this schedule, and is less than the amount mentioned in the second column thereof, every person and company being the owner of such land shall be liable to a further graduated annual tax at the rate mentioned in the third column of this schedule. Between £5000 and £10,000, one-eighth of a penny. Between £10,000 and £20,000, two-eighths of a penny. Between £20,000 and £30,000, three-eighths of a penny. Between £30,000 and £40,000, four-eighths of a penny. Between £40,000 and £50,000, five-eighths of a penny. Between £50,000 and £70,000, six-eighths of a penny. Between £70,000 and £90,000, seven-eighths of a penny. Between £90,000 and £110.000, one penny. Between £110,000 and £130, one penny and one-eighth of a penny. Between £130,000 and £150,000, one penny and two eighths of a penny. Between £150,000 and £170,000, one penny and three-eighths of a penny. Between £170,000 and £190,000, one penny and four-eighths of a penny. Between £190, and £210,000, one penny and five-eighths of a penny. £210,000 and over, one penny and sixeighths of a penny.

Provided that, in the case of any person who has been absent from or resident out of the colony for a period of three years or over that period prior to the passing of the annual Act imposing the tax, the scale of taxation set forth in this schedule shall be increased' by twenty per centum in each case where it is applicable. And all graduated tax as aforesaid shall be assessed and levied 011 the amount of the assessed value of the land less all improvements thereon. V. Improvements " include houses and buildings,, fencing, planting, draining of land, clearing from timber, scrub, or fern, laying down in grass or pasture, and any other improvements whatsoever, the benefit of which is unexhausted at the time of valuation. No deduction shall be allowed under this Act in respect of any mortgage from the value of the land upon which such graduated tax is payable in so far as such graduated tax is concerned. SCHEDULE C. Income of Companies. 1. Every company carrying 011 any business, adventure, or concern in New Zealand (other than a company wholly or mainly carrying 011 the business of life insurance) shall be liable to the tax on income which shall be assessed and paid by such company in respect .of the gains and profits derived or received from such business in each year ending on the thirty-first day of March. The income of the company shall include dividends earned, sums carried to reserve fund, and any other profits _ made or income derived and not divided among shareholders or persons entitled to such gains or profits during such year as aforesaid, and shall also include profits made or income derived by or from the use or produce of land, and, in the case of banking companies, shall include income derived or received from mortgages. Provided that every person or company engaged in business as owner or charterer of shipping shall be assessed for taxation upon its income on such terms and conditions as may be prescribed by regulations, and such assessment shall be subject to all rights of objection and revew as provided by this Act. Provided also that in the case of insurance companies regulations may prescribe means for determining what portion of the income of such companies shall be deemed to be the income of such companies in New Zealand, and such income only shall be liable to be assessed for income tax tinder this Act.

2. In any case where a company has at any time heretofore borrowed or shall at any time hereafter borrow money on debentures, such company shall be deemed to be the of everv holder of such debentures, whether such holder be or be not resident in New Zealand, and such company shall be liable to nay tax accordingly on behalf of every holder of such debentures, and shall be entitled to deduct in each year from any instalment of interest payable by it upon the amount of such debentures any tax so paid, whether coupons for such interest have been issued with such debentures or not. But no such debenture-holders shall be allowed any deduction by way of exemption from assessment. 3. No company shall be entitled to any exemption in respect of the assessment for tax on income, but the person receiving any income in respect of any share or interest in any company shall not be liable to tax thereon. 4. In respect of companies or associations carrying on the business of life insurance in New Zealand (including the department created under the Government Insurance and Annuities Act, 1874), tax shall be assessed and paid upon the income derived by each such company or department from investments of any kind other than investments in laud or upon mortgages of land. SCHEDULE D. Income from Business. 1. Every person shall be liable to tax in respect of income derived from business on the full amount of the balance of the profits or gains of such business. " Income derived from business" means the gains or profits derived or received in New Zealand from any trade, manufacture, adventure, or concern in the nature of trade, whether the same shall be respectively carried on in New Zealand or elsewhere, in each year ending on the 31st day of March, and not taxed under any other schedule of this Act, and shall include income so derived or received from any pastoral lands of the Crown in New Zealand held by any person under lease or license issued by or on behalf of the Crown. 2. Tax shall bo assessed and paid by every person upon the income derived from business as aforesaid, and, when the taxable amount of income so derived has been ascertained in accordance with this act, every person or firm of partners engaged in any business shall be entitled to a deduction by way of exemption of three hundred pounds; and no person, whether in partnership or carrying on business alone, shall be allowed more than one such exemption, either in respect of business, or employment, or emolument. SCHEDULE E. Income from Employment or Emolument. 1. Every _ person shall be liable to tax in respect of income derived from employment or emolument and not derived from business as aforesaid. " Income derived from employment or emolument" _ means the gains or profits derived or received in New Zealand in each year ending on the 31st day of March, and whether such person is residing in New Zealand or elsewhere, from the exercise of any profession, employment, or vocation of any kind not otherwise liable to taxation under this Act, or from any salary, wages, allowances, pension, stipend, or charge or annuity of any kind not charged on land. 2. Tax shall be assessed and paid by every person upon the income derived from employment or emolument as aforesaid, and when the taxable amount of income so derived has been ascertained in accordance with this Act, every person or firm of partners engaged in any employment or receiving any emolument shall bo entitled' to a deduction by way of exemption of three hundred pounds; and no person, whether in partnership or engaged in such employment alone, shall be allowed more than one such exemption either in respect of business, employment, or emolument. SCHEDULE F. Miscellaneous Rules as to the Assessment of Income.

1. All losses and outgoings actually incurred by any person or company in production of the income shall be deducted from the gross amount of his income. 2. But, in estimating the balance of the income liable to tax in the case of any business, employment, or emolument, no sum shall be deducted therefrom for—(a) Any sum expended for repairs of premises occupied for the purposes of the business or employment, nor for aiiy sum expended for the supply of or repairs ■* to or alterations in any implements, utensils, or machinery employed or used for the purposes of such business or employment, beyond the sum usually expended in any year for such purposes; (6) Nor on account of loss not connected with or arising out of such business or employment, nor on account of any capital withdrawn therefrom, nor for any sum used or intended to be used as capital in such business or employment, nor for any capital used in the improvement of premises occupied for the purposes of such business or employment: (c) Nor on account of any interest which might have been made on such sums if laid out at interest; (d) Nor for any bad debts except bad debts proved to bo such to the satisfaction of the Commissioner ; (e) nor for ■■■ any average loss beyond the

actual amount of loss after adjustment, nor for any sum recoverable under any insurance or contract of indemnity; (f) any disbursements or expenses whatever not being money ' wholly and exclusively laid out or expended j * • -V* for the purposes of such business or employment ; {(/) any disbursements or expenses of maintenance of the parties, their families, or domestic establishments; (h) nor for - the rent or value of any dwellinp;house or ■ domestic offices,£or any part of such dwel-. linghouse or domestic offices, except such part'thereof as may be used for the purposes' of such business or employment, not exceed- ' ing such proportion of the said rent or value as tnay be allowed by the Commissioner ; \i) nor for any sums expended in any other domestic or private purposes distinct fro the purposes of such business or employment. 3. The computation of tax arising' in respect of any business or any employment carried 011 by two or more persons jointly shall be made and stated separately and distinctly from any other tax chargeable 011 thesame persons or any of them. 4. Every company and local authority, and every person carrying on business or engaged in any employment-, shall, in such manner and form as may be prescribed, from time to time furnish the Commissioner with lists of all persons employed by them, and the salary, wages, stipend, or other allowances or emolument paid or allowed to each such person. 5. Allowances made to any person by way of house rent, and all amounts received or receivable by way of extra salary, bonus, allowance, or emolument, shall be taken into account as part of tho annual income liable to taxation.

6. When any person or company occupies for the purposes of business or employment any land in respect of which tax 011 land is payable by him or it under this Act for the same period, such person or company shall be entitled, in any return of income for such period, to deduct a sum equal to five per centum on the amount on which such person or company is liable to nay tax 011 land. ' 7. Any person who has effected or may hereafter effect an insurance on his own life for his own benefit, or for the benefit of hiß wife and children, or one or some of them, with any company or association carrying 011 • the business of life insurance, shall be entitled to deduct from his income as' an outgoing the amount of premiums paid m any year in respect of such insurance, provided that no greater deduction than fifty pounds shall be allowed in any year in respect of all premiums paid for such insurance. . :