THE AMUSEMENTS TAX.

New Zealand Herald, Volume LIV, Issue 16697, 15 November 1917, Page 6

THE AMUSEMENTS TAX.

METHOD OF COLLECTION.

FIRST WEEK'S RETURNS. ' [BY TEUEQBATH— CORRESPONDENT.} WELLINGTON, Wednesday. The question has been raised as to whether the subscriptions paid by members of sports clubs are liable for the amusement , tax imposed by the Finance 'Act of last session. The general impression among members of Parliament and the public when the Act was passed was that it was to be levied only on the charges paid for admission to entertain- i meats including ; such 6porta contests as ( boxing matches, football and cricket matches, and similar sports, to which it is the custom to charge for admission. In one part of the interpretation clause of the Act, it is . laid down that the tax is to levied on payment made by persons for' admission as spectators or a 6 members of-' an audience, but the clause is not as de-1 finite as it might bo ou the point of! whe»w?r persons who pay for membership of a club for the purpose of attending at a place where a game or sport is carried on in order themselves to take part in the game, are liable to pay the tax. The Commissioner for Stamps" has considered - this question very fully, and he, has come to the conclusion that club sub- . Bcnptions to such institutions as bowling, golf, or " tennis clubs, are riot" liable to auty. I , : > at any ■ time admission is charged to persons wishing to be ' spectators at anv of these games the admissiou charges will be liable to the new duties. No definite pronouncement ha# yet been made jij, to the policy of the Department in regard to the taxing of private entertainments, but it is probable that the tax will not be i levied .on charges • for admission to such entertainments if they are promoted _ by a limited number of people for their own amusement. '""' •; The Finance Act ' came . into operation at; the beginning of November. The amusements tax returns for the first week are now being received. The ■ practice adopted in dealing with permanent "shows such as those m picture " houses is to accent the certified statement of the : proprietor or manager as to the number of tickets liable to duty that have been sold during the week .They are bound to' use the roll tickets, .which have come into vogue in late years, and at any time an agent of the Department, who may be a policeman, may go into the ticket-box and' take a' note of the numbers of tickets as they are being sold. The same procedure ;s taken with the established firms in control of itinerant companies, but new companies are required to use tickets supplied by tho Department,' and ' to enter into a bond and to find an approved /security for "an amount estimated to cover the amount of tax for which any particular company is likely to become liable. If there should be any reason to suspect that tho manager of a permanent or itinerant show is not furnishing accurate returns he may be asked to use the Department's tickets. - • ■ ■"

By far the greater ; number of tickets purchased for admission to picture-shows m the cities are not liable to the duty because tickets of less than Is in value do not pay: : duty. It has-been found that quite large theatres which rely mostly on tho customers who frequent the; cheaper parts of the house, May be required to pay < only about 25s in duty for the first week in which the tax has been in operation. The bulk of the revenue from this tax will be collected from those entertainments for which the admission charge is considerable.