DUTY UPON GIFTS.

New Zealand Herald, Volume LVIII, Issue 17963, 13 December 1921, Page 8

DUTY UPON GIFTS.

RETROSPECTIVE LEGISLATION. RECOVERING LOST REVENUE. [by telegraph.—press association.] WELLINGTON. Mondiy. In the House this evening the Prime Minister moved the second reading of the Death Duties Bill, which, he said, was mostly a consolidating measure, but there were one or two amendments which it was desirable to make. He referred to the weakness discovered recently by which property might be given away in sums under £1000, and so be duty free. He did not think much revenue had been lost by this, but in any case he was making the amendment retrospective, so that anv revenue lost would be recovered. Mr. t. K. Sidey (Dunodin South) qnes- . tioned the wisdom of making clause 46 retrospective. In most case 3it would be distinctly dangerous, but in this case he felt disposed to, give the Prime Minister the benefit of the doubt. Mr. Massey: That is right. When in doubt treat the Premier! Mr. R. McCallum (Wairau) suggested that in the case' of estates which pass from husband to widow and from widow to children within a short period there ought to be some relief from the double £eath duty now charged. He also, thought that in the case of estates which comprisedchiefly unearned increment on land there ought to to some special duty fm- . posed. r Mr. H. E. Holland, Leader of 'the labour Party, said he marvelled that, in times like these, when the Minister for Finance was looking for every penny of revenue he could get. he did not seek to get more out of the large estates. II wag .pointed out. that since 1908 the system of charging estate duty had been changed, : Now estates hot only $aid estate duty, but succession duty an well. This meant that the charges were now much higher than. formerly. The second reading was carried. The Bill was reported with * the following amendment, moved by the Prine Minister:— Clause 46.—T0 insert after sub-clause 2 the following sub-clauses: (2A) Where a gift first becomes liable to gift duty by reason of the making of a subsequent . gift, the gift duty upon the first gift (shall-,be payable immediately upon the ' making of the Subsequent gift; (23); where a gift, subject 1 to gift duty, subsequently becomes liable to a-higher rate of gift duty by v reason bfHhe making of e subsequent gift, the edditional gift duty, upon the first gift shall be payable immediately upon the making of the sub* sequent gift> The BUI was passed as amended. 1 " • ■ ■ -■'