INCOME TAX LAW

New Zealand Herald, Volume LXXVII, Issue 23595, 2 March 1940, Page 16

INCOME TAX LAW

ANOMALIES DISCUSSED MANY INJUSTICES OPINIONS OF ACCOUNTANTS [BY TKLKCnAPIt—PKKSS ASSOCIATION] WET-LINO TON, Friday In a discussion following a paper read by Mr. C. R. Richardson, of Wellington, in which discussed at the accountants' convention to-day some aspects of the income tax law in New Zealand. Mr. L. M. Satterthwaite said the paper had brought to light so many injustices in the law that they should be taken up by the Accountants' Society and brought forcibly to the notice of the authorities.

A few of the chief pojnts brought out by .Mr. Riehard.son were anomalies in taxation yields as between earned and unearned incomes, also the alleged unfairness of the taxation of dividends from private companies, such revenue being from distributions subjected to the maximum rate of fax through company taxation prior to distribution. As regard earned and unearned incomes, he said it was difficult to see how the existing process of discrimination could possibly be justified. The nature of income, surely did not affect the relative rapacity of the person to pay.

Mr. (!. Reid. of Dunedin. said it had become apparent in the last year or two that anomalies were being created not so much by legisation as In departmental methods of procedure and interpretation. Contrasted with the past, there was n tendency on the part of officers to "pass the buck." as it were, on to the taxpayer. II lie did not like it lie was practically invited to bring a case and fight it. That was a completely wrong attitude for any department to adopt toward a taxpayer. He expressed the opinion that it was a great pity there was not some sort of organisation in existence which, when points of principle arose affecting taxpayers, could take them up and fight them.

Several speakers referred to what they described as the invidious position of the Commissioner of Taxes. They said he should not be a tax gatherer, but merely a revenue collector. Some suggested that there should be an intermediary body to act as between the commissioner and the taxpayer, and decide questions without great expense and in an impartial manner.