SALES TAX OPERATION

New Zealand Herald, Volume LXX, Issue 21504, 30 May 1933, Page 10

SALES TAX OPERATION

BAD DEBT LOSSES r ALLOWANCE NOT POSSIBLE ADVICE FROM MINISTER f A suggestion that bad debts should be dealt with in a manner similar to that provided in connection with credits on returned and damaged goods was recently submitted to the Minister of Customs, the Pt. Hon. J. G. Coates, by the Auckland Chamber of Commerce when forwarding criticism of certain aspects of the Sales Tax Act. _Thc Minister has now replied to the chamber.

"With regard to the deduction of credits allowed on goods returned or damaged," stated Mr. .Coates, "I have to state that when the regulations were being framed, the Government desired to extend every concession that was reasonably possible under the terms of the law. In these circumstances it was decided under sections 11 and 13 of tho Act to make the provision respecting such deductions. It is not, however, considered that these or any other sections of the Act would authorise an allowance for bad debts. My view at present is that tho only alteration which coidd lawfully be made in this connection would be to abolish the concession for credits on goods returned or damaged. "The question as to tho best method of dealing with materials, etc., used in tho manufacturing industries is an extremely complex one, and is at present receiving the fullest consideration. I shall write to you again respecting this matter as soon as I am in a position to do so."

' It was also pointed out to the Minister that a number of wholesalers had also taken exception to part A of Form 3 as being unduly inquisitorial, not necessary and likely to cause friction between wholesalers and their customers. In reply, Mr. Coates, who says that this and some of the other forms used by the commercial community, were shown before they were finally adopted to certain wholesalers and retailers in Wellington, who were believed to be representative of New Zealand merchants, and the forms were generally approved. So far as he could see at present, the information required was necessary, but •when the regulations were being revised lie would be glad to bear the objections in mind for consideration.