THE WAR LOAN

New Zealand Times, Volume XLIII, Issue 9953, 24 April 1918, Page 5

THE WAR LOAN

COMPULSORY CONDITIONS EXPLANATION BY THE FINANCE MINISTER. Sir Joseph "Ward (Minister for Finance) made a further explanation vesterday in respect to tho provisions for compulsory contributions to tho War Loan. "The compulsory provisions of the Finance Act of 1918," he said, "provido that the amount which any person may be required to contribute shall not exceel six times the yearly average of the land tax and income tax (exclusive of excess profits duty) pad 1 or payablo by hm for the three years ended March 31st, 1918. The term 'income tax' includes special war tax, as the special war tax, as the special war tax is referred to in tho Act of 1917 as a tax levied by way of income tax, and therefore forms portion of tho income tax payable by the tax payer. "The extent to which contributions made to previous loans will be taken into consideration by the Commissioner of Taxes is a matter which is governed by the discretionary powors. given to the Appeal Board. "The object of the compulsory clauses is to compel the financial shirker" to contribute his fair share of the burdens cast upon the community, but not to penalise a contributor who may have subscribed to the fullest extent of his ability to a previous War loan. The puiblic, therefore, may rest assured that those who nave liberally subscribed to previous loans, and to whom it would be difficult to subscribe further to the 1917 loan, will receive full consideration of any representations which thoy may find it necessary to make to the Commissioner of Taxes or the Appeal Board, and that no injustice will be done. . , . . , . "The provision contained in last vear's section 40, excluding the excess profits tax from the "basis on which the levy is to he made, is now repealed, but the provision regarding tho exemption, from the basis of levy, of the excess profits tax has been re-enacted in this year's* measure; consequently the basis is simply the average annual land and 1 income tax (excluding excess profits tax) paid during the past three >e £ir' Joseph Ward also stated that it will be-some weeks before the machinery for putting the compulsory clause? into operation will be ready and conBequentlv sufficient time will he allowed for "any persons who may fce in doubt regarding their obligations to communicate with the Treasury or with the Commissioner of Taxes With a view of ascertaining their liability.