A LIGHTER BIDDEN.

New Zealand Herald, Volume LIX, Issue 18206, 27 September 1922, Page 10

A LIGHTER BIDDEN.

FURTHER TAX RELIEF. WAR PENSIONS EXEMPT. I: PROFITS TO OFFSET LOSSES. [BX TELKQaAPH.—SPECIAL BJBPQETER.] WELLINGTON. Tuesday. In addition to tho provisions explained by the Prime Minister another clause of the Land and Income Tax Amendment Bill provides that new valuations are to operate as from March 31 succeeding the application for a revaluation. In regard to income tax it is provided that after this ysftr losses incurred in business may be set off against profits earned within the three following years provided that any relief under this section shall be given so far as possible from the first assessment within the period of three years, and so far as it cannot then bo given shall be given from the next assessment, and so on. One clause provides that any company resident in New Zealand and carrying on business exclusively in any of the islands of the Pacific Ocean, not being British possessions, shall be assessable for income tax only in respect of such part of its income as is received in New Zealand. War pensions are exempted from income tax. Losses incurred by a taxpayer in one business may be set off against profits lamed in another business. There is provision for a reduction of 5 per cent, in the tax on premiums in respect -of contracts of insurance with foreign companies not carrying on business rn New Zealand. For the purposes of .the principal Act a husband and wife carrying on business together shall not be deemed to bo > carrying on business as partners unless in fact they are carrying on business under a deed of partnership. * EFFECT OF NEW PROPOSALS LAND AND INCOME TAXES. COMPARISON WITH OLD RATES. The general effect of the Government's proposals is a substantial reduction below tho taxation levied in the last two. years. In tho case of income tax, the application to individuals depends on the exemptions for insurance premiums, children, etc., and the rebate of 10 per cent, in the case of earned incomes. The following table illustrating *the difference in the scales operating in 1921 and 1922 and those proposed for the collections early in 1923 takes into account only the general exemption of £300: — Assessable 1021. 1922. 1923. Incomo £e. d. £s- d. £»• d. 6 5 0 5 M 0 5 0 0 £500 12 10 0 11 8 0 10 0 0 £600 IB 15 0 17 2 0 15 0 0 £700 28 10 10 80 17 6 27 1 8 £800 42 3 9 49 18 6 43 15 O £900 53 2 6 72 13 6 63 15 0 £1.000 70 6 3 86 10 0 7» O0 , *9 000 'H9 9 7 266 0 0 233 6 b H'.OOO 532 16 3 54110 0 475 0 0 £4 000 920 6 9 Wg 0 0 £5.000 1.411 19 7 1,377 10 0 1.203 6 8 *R 000 Q 007 16 S 1,938 0 0 1,700 O O «7 000 9557 10 0 2 427 6 O -2.129 3 4 fftfOrt 10 0 2 964 O 0 2.600 0 0 Ssß MS 8 8 tMi-t HS 6 * fifloufifi o 11M0O 0 11000 0 0 £40.000 11.932 10 0 16.720 0 0 14.666 13 4 Up to 1921, incomes were charged with ordinary and war taxes, and in respect of the latter the exemption of £300 applied to all incomes. Last year, the Government brought in a single scale, and one result was that by graduating the_exemption of £300 on incomes above £600, so that, it disappears at £900, the taxation on all incomes above about £650 was substantially increased. Under the proposed scale, this disproportion will remain Following is a similar comparison of the land tax collected in November 1920 and November 1921, and that to be paid noxt November: — Taxable 1920. 1921. 1922. Balance. £s. d. A' •. d. £s. d. £1.000 650 500 4 11 8 £2.000 12 17 9 10 10 0 919 2 £3.000 19 18 4 16 10 O 15 2 6 £4.000 27 610 23 0 O 21 1 8 £5.000 85 3 1 30 O O 27 10 0 £6 000 43 7 1 37 10 O 84 7- 6 £7.000 51 19 O 45 10 0 41 13 4 £8,000 60 18 9 64 0 0 .49 10 0 £9,000 70 6 3 63 0 0 57 15 0 £10.000 8016 72 10 0 6692 £20.000 199 4 4 195 0 O 178 15 0 £30 000 357 8 4 367 10 0 336 17 6 £60.000 791 0 3 662 10 O 700 19 2 £9".OO0 2.126 19 0 2.442 10 0 2,238 19 2 £130.000 4.087 17 9 4.842-10 0 4.438 19 2 £138.000 4.555 1 6 5.416 10 0 4,985 2 6 HARBOUR CONSTRUCTION. CENTRAL EXPERT URGED. INSPECTION OF LIGHTHOUSES. [BT TKLKCRAPH.-—SPECIAI, BEFOBTMt.] WELLINGTON. Tueeday. When the annual report of the machinery inapeotuig Bection of the Marine Department was under consideration today, the Leader of the Opposition, Mr. T. M. Wilford asked when tho lighthouses round the coasts of New Zealand were last inspected and whether the Secretary for Marino ever made a personal inspection of these lighthouses? He mentioned that Mr. Allport, when Secretary for Marine, personally inspected the lighthouses and attended to the requirements; of the plant and the tenants. » Mr. Wilford also asked whether the Government proposed to give,effect to the,, resolution agreed to in 1918 that there should be appointed by the Government a marine engineer for the purpose of advisintt harbour boards. He stated that huge sums, running into millions, had been expended by harbour boards, and in many cases, the money had been thrown away, because there had note been effectual supervision. Speaking as a former Minister for Marine, he was of the opinion that it would pay the Dominion to have such an engineer. Several members interested in artificial and other small harbours, objected to any auch central control. This view was taken by Mr. J. Craigie (Timaru), who aafd that one of the greatest English marine engineers had reported on the proposal to conßtruot the harbour at Timaru and his plans did not provide for accommodation for vessels over 1000 tons. They had, however, gone on the advice of their own engineer, and had constructed the present fine harbour. The Minister for Marine, Hon, G. J. Anderson, said the lighthouses were inspected by Captain Botions every time he visited them with aupplies and quite recentlv Mr. Tanner, the chief clerk of the department, had also gone round and made an inspection. He thought the appointment of an engineer, as suggested, would be all very well if the financial'position were good. However, the expenditure in the Marine Department had gone up very considerably, and lie did not propose to further increase it. In any caie, he did not think that local districts would take kindly to being coerced into dohw what v» central engineer suggested, when the course proposed differed from the advice given by the local engineer. AGRICULTURAL BANKB. PROPOSED LEGISLATION. [by telegraph.—pbbss AssocumoH.] ' WELLINGTON. Tuesday. The Leader of the Opposition, Mr. T. M. Wilford, inquired in the House whether the Prime Minister proposed io introduce legislation this session dealing with the establishment of agricultural banks. " I said so in tho Budget," replied Mr. Massey, " and that should be quite eu|ficicfltb" r " 4