LANG RETALIATES.

New Zealand Herald, Volume LXIX, Issue 21153, 9 April 1932, Page 11

LANG RETALIATES.

SURPRISE MOVE. taxation assessments. all access barred. OFFICIALS ON LEAYE. '£250,000 FROM BANK. gv XeleprnrK—Press Association —Copyright. (Received April P. f.5 p.m.') SYDNEY, April P. ijhe -first retaliatory move by the premier of New South Wales, Mr. Lang, gcaiiisfc *' ie Commonwealth's decision under the Financial Agreement Enforcement Act to attach the income-tax revenue of the State was launched to-day. /The officers of the Taxation Department- on arrival at their ofiiees found the doors locked on all three floors where the assessments and records are kept, a nd the issue of all assessments, both Federal and State, has been discontinued. In the night the locks had been changed and the keys are reported to be held by the Premier. This move automatically causes a cessation of the issue of all assessments and prevents the Federal authorities from paining access to the records of those assessments which have been already issued. The scores of officers of the department have been told that they must tako leave. Mr E. J. McMahon, Commissioner of Taxation, who also is DeputyFederal Commissioner, declined to make any statement.

The Federal Government has power to order Mr. Lang or Mr. McMahon, under pain of a severe penalty, to open the doors of the Taxation Department and

instruct all the employees to return to dutv. People who already have received assessments are obliged to pay the taxation due bv them to the Commonwealth promptly.

An interesting feature to-day was the rush of taxpayers to pay their taxes at the Commonwealth Bank, in accordance with yesterday's proclamation. Hundreds sought the distinction of being the first to take advantage of the new order of things. Special arrangements had been made to cope with the situation. It is reported that during the week Mr. Lang withdrew a further £250,000 from the Bank of New South Wales and transferred it to the vaults in the State Treasury building.

A message from Melbourne says the Prime Minister, Mr. J. A. Lyons, after a meeting of the Federal Cabinet to-day stated that he had no comment to offer in regard to Mr. Lang's action in closing the taxation offices and impounding the assessments. COMMENTS BY PRESS. LABOUR DAILY'S THREAT. SURPRISES FOR MR. LYONS. SYDNEY. April 8. The Svdney newspapers comment on the proclamation by the Governor-General, Sir Isaac Isaacs of the Federal Government's Financial Agreement Enforcement Act. The Daily Telegraph says: " Remember that if you pay your tax to the Taxation Department you break the. law and can be heavily fined. Moreover you will have to pay * again to the Commonwealth authorities. The Prime Minister, Mr. J. A. Lyons, has slated that we will act strictly according to the law and we expect Mr. Lang to do the same. If the High Court's decision had been adverse / we should have accepted it."

The Sydney Morning Herald says: ' It is accepted in political circles in New South Wales that Mr. Lang is hoping for a favourable verdict from the Privy Council on the Upper House issue. If this is given he will be in a. position to levy taxation or to make a capital levy. That might enable hiin to meet his obligations. There is a strong opinion that if the Privy Council's judgment is given against the State Mr. Lang will resign."

The Labour Daily, in art article under 8 streamline, /heading, " foreclosure on Bank Deposits is Feared," says: Determined and effective action will be taken by the New South Wales Government to checkmate the vindictive move of the Federal Government in issuing the proclamation for the seizure of Stale revenues. The plans of ths State Government cannot he disclosed at this stage, but its supporters ca.i be assured that they will be thorough. An effective, and more than onp, surprise awaits the l'ederal authoiities. "Ihe main danger, however, lies in the fact that in the Commonwealth Bank are the deposits of more than 1,000,000 citizens of New South Wales who were inveigled into depositing their money there when the New South Wales Savings Bank was closed. The real purpose behind the closing of the Government Savings Bank,'' says the Labour Daily, " is thus revealed to have been a determination to make the savings of the people of New South Wales readily accessible in the event of the Commonwealth deciding to seize, them."

LANG'S DEFAULT. HARBOUR BRIDGE LOAN. the interest not paid. MELBOURNE. April 8. "Even the Sydney Harbour Bridge was kuilt on borrowed money on which Mr. Lang refuses to pay the interest," declared Mr. S. M. Bruce, Assistant Federal Treasure!', in a speech at Belgrave. Hp *as rebutting the claim of Mr. Lang that k® was defaulting only on war expenditure. Mr. Bruce said that not one penny of this Kew South Wales debt had been f lnc urrcd iu coiincetion with the war. irioney owed had been upent inside W South Wales.