AMENDMENTS INTRODUCED

New Zealand Times, Volume XLVI, Issue 10719, 13 October 1920, Page 5

AMENDMENTS INTRODUCED

COMPANY TAXATION AND LOCAL BODY DEBENTURE TAX.

4. number of amendments to the Land Rnd Income Tax Bill were introduced by Governor-General's Message last night. The Finance Minister proposes to omit sub-clause (1) of clause 20. which provides that for the purpose of income tax two or -more companies with substantially the same shareholders mav be treated as one company, and gubritute the following more definite sub-clause: —"If the Commissioner is satisfied with respect to two or more companies consisting subtantiallv of the same shareholders or under the control of the same persons- that the separate constitution of those companies Is not bona fide for the purpose of more effectively carrying »ou?fc their objects, but is for the purpose of reducing their taxation, the Commissioner may, for the purposes of income tax, treat those companies as if they were a single company, and in anv such case those companies Bhall be jointly assessed and jointly and severally liable, with such right of con' tribution or indemnity between themselves as is just." The following sub-clause (4) Is to b? added to clause 23. -DrovidinT that local and public authorities shall be theagents of their debenture-holders in respect of income tax on debentures: —"Nothing in this section shall be so construed as to render liable to income tax anv income that is exempt from taxation by virtne of .section eighty-four of the principal Act." , Other amendments are dealt with in Ihe ''Times" report of the discussion appearing under the Parliamentary head-