Taxation System

NZ Truth, Issue 1146, 17 November 1927, Page 1

Taxation System

to the popular business formula, of "Contingent Accounts" and cheques paid over and made payable to "bearer"? , 'Has he examined closely the. question of cash sales and the important item of searching stock? ; If so this article will contain no information "which is not already m his possession; but, oh the other hand, if he has not gone thproughly into 'these questions, then wba,t "Truth" has to say on the pub ject should provide him 'with food for very serious reflection. - ' Bearer cheques "and contingent accounts, while not the biggest source iof possible leakages,, still loom very largely m the scheme of things. A business man may put 'through a t deal involving payment to him of;~ l say, £ 300 m settlement of •■ goods sold or by w^y of commission. He arranges for the cheque to be made out, to "bearer," and he can then go to the , bank himself, or send his agent, and cash it; , Assuming', the number of the-cheque is 431, who is to know who cashed the cheque? Certainly not the bank which cashed it. ■phis means that the whole transaction is lost sight of so far as the Commissioner of Taxes is concerned. ■ The Commissioner may say m reply to this that there is still a record of the cheque and the ; party who paid it to "bearer." . „; But does the Commissioner ever, query these .cheque's! ' The banks, too, may try to induce those; who tender "bearer" cheques to endorse , their names on the bfick, ' bu t the bearer is under no legal obligation