INCOME TAX AMENDMENTS

New Zealand Herald, Volume LXXVI, Issue 23470, 6 October 1939, Page 10

INCOME TAX AMENDMENTS

Sir,—ln order to justify the reduction of the exemption for insurance premiums, the Minister of I'inance quoted two instances which, examination of his figures reveals, must be extreme cases. In one instance, the taxpayer must have had. an income derived from personal exertion of £3OOO and, in the other, the earned income must have been substantially more than £9OOO. Are these typical cases? Obviously they are not. yet they were presented by the Minister to defend ft measure which will increase the taxation of persons who are endeavouring to provide security for themselves and their dependants. The aggregation of incomes of husband and wile will also work unfairly. Suppose the wife has nu income from investments in companies. The only effect of the proposed amendment will be to increase the tax payable by her husband, because 110 part of it can be apportioned to the non-taxable income of the wife. Perhaps some taxpayers have gained relief by transferring part of their estate to their wives. If that is wrong, the law should forbid gifts from husband to wife, or if the Government prefers the taxation method, it should exempt from aggregation income derived by the wife from any other source, e.g., inheritance from her father. Oiisrcuvfta.