LAND AND INCOME TAX

New Zealand Times, 12 September 1907, Page 7

LAND AND INCOME TAX

THE ASSESSMENT? BILL. VARIOUS AIEBXKUEKTS. The Public Accounts Committee rc-j ported to the House yesterday the ro-, suit of its (ltd iboratioiis on tho Land' and Inc-mo Assessment Bill, Various important amendments arc made in; tho Bill, which, tho Premier an-: nmiuced, is to bo ihe first bushiest after tho tariff is disposed of. THE 25 PTOil CENT. INCREASE. Clause 7, providing for tho imposition of an extra 25 per cent, graduated land tax, has been amended not? to take effect until March 31st, 1909.*; Thu term “business premises” now) moans any piece of land included with-*' in tho area-of a building used for* business purposes, together with such! additional land as immediately adjoins tho said building and is used and occupied in connection therewith, and does not exceed iii o:ctcnt the area of tho building itself. ABSENTEES.

A new clause provides that every tax-payer who on -March 31st in any year is an absentee within the meaning of this section is to bo assessed and liable for graduated land-tax at a rato greater by 50 per cent, than the rato; at which ho would have been assessed'! independently of this section. Every l ! person is to bo doomed an absentee: unless ho has been personally present in Now Zealand for at least one-half. o'i the period of four years immediate-: Jy preceding the year in and for which! ho is assessed for graduated land-tax,• provided that no person who has acquired all his land in New Zealand within tho period of four years shallbo deemed to bo an absentee if ho lias, been- personally present in New Zcani land for at least cne-half of tho period which has elapsed between the time when ho first acquired any of that land ami the commencement of the year in and for which ho is assessed. If an* absentee tax-payer is liable to be as-* sessed for graduated land-tax jointly with any other tax-payer who is not, an absentee, they shall bo assessed and liable jointly as if neither was an ah-*-sontec, and the absentee tax-payer, shall also bo separately assessed and, liable. This section shall not apply to companies, but shall apply to shareholders in companies. LIFE TENANTS. Clause 9 has been amended to read: “The owner of any life estate or of any other freehold estate less than tho foe simple shall bo deemed for the purposes ox this Act to bo tho owner of tho fee simple to the exclusion of any person entitled in reversion or remainder, and shall be assessed and liable for graduated land tax accordingly.” LEASEHOLD ESTATES. Deduction from tax payable by the, owner of a leasehold estate: A new : sub-clause has been added that tho, provisions of this section shall not apply to any leasehold estate existing at tho time of tho passing of this Act unless the owner of such leasehold , estate or predecessor in title has been at any time within five years next before the passing of this Act' the owner at law or in equity of a freehold estate in the land which is subject to such lease. * BUYER AND SELLER. New sub-clauses have been added providing that tb© tax payable by a buyer may bo deducted from tho amount payable by a seller; no disposition is to be effective so long as possession is retained; equitable owners are to be liable as if tffo estate or interest so owned were legal; trustees are to bo liable as if beneficially i entitled. MORTGAGEES IN POSSESSION.

Sub-clause 3 of clause 21 (mortgagees in possession liable like lessees) now reads:—“Any mortgagee in possession of land or any other person who is in possession of land by way of a security for money shall bo deemed for the purposes of this Act, so long as such possession continues (though not to the exclusion of the liability of any 6th,er person), to be tho beneficial owner of the estate or interest which is subject to such mortgage or other security, and shall be liable for graduated land tax accordingly j but there shall be deducted from the tax so payable by bim the amount of graduated land tax (if any) paid in respect of such estate or interest by the mortgagor or other owner thereof.” TIMBER, ETC. It is further provided that all standing timber shall bo assessed at half its value and no more, and the liability of all persons for graduated land tax shall be determined accordingly. The increase of 25 per cent, is not to be added to any land tax payable in respect of standing timber. This section is to take effect in respect to land tax payable for the year commencing April 1, 1907. Timber and flax have been cut out of clause 22, which now reads:—“No land tax, whether ordinary or graduated, shall be assessed or payable in ‘respect of the value of any minerals: and for the purposes of any such tax the value of the minerals shall not bo taken into account in estimating the value of tho land. The term ‘minerals* means all minerals, metals, coal, oil, gum, clay, stone, gravel, sand, or precious stones existing on or beneath the surface of the land.” STRUCK OUT. Amongst, the clauses struck* out is tho following:—“The Commissioner' may require any person (whether a taxpayer or not) to furnish in writing any information in his possession or power concerning the land, income, property, or assessment of any person, and any person failing.or refusing to furnish any information so quirod is guilty of an offence.”