WHO PAY THE TAXES?

Otago Daily Times, Issue 20022, 12 February 1927, Page 4

WHO PAY THE TAXES?

LAND AND INCOME TAX DETAILS. NEW ZEALANDERS’ AVERAGE INCOMES. COMPANY CONYTtIBOTIONS. Next to the Customs the main sources of income for the general government are the laud and income taxes. ■ These are subject to the most careful and detailed analysis each year by the Government Statistician, who deal', ol course, in classes and not with individuals. From the survey of the 192526 tax returns, a valuable review has been obtained. Incomes under £3OO are completely exempt from tax, and the exemptions run further up the scale, so that a good d»al of (ho income of New Zealanders does not, conic- within the scope of the tax collector. However, this department dealt last year with over 80,000 returns, eliminated a number as being below the taxable mark, ami loft a solid residue of 45,822 taxpayers who between them confessed to a gro.-s income of over 52 millions sterling. '.l’he importance ,of exemptions is seen when it is mentioned that the actual taxable balance was reduced to 29 millions sterling. From what sources was ibis income derived? The survey makes the following disclosures, assessable income being indicated in each case: — Salary or wages £16,519,110 Professional or own account .. 3,072, Commerce, trade, or business .. 15,749,987 Industry* or manufacture .. .. 3,622,77.3 Farming •• •• 551,1(8 Transport or communication .. 854,396 Building or construction .. .. 902,369 Mining or extraction 189,967 Investments, etc. 11,075,875 Entertainments, etc 103,0(3 EFFECTIVE EXEMPTIONS. Exemptions operate so freely on the lower scale that only 36 per cent, of those with incomes between £3OO and £4OO were required to pay taxes. Nearly two-thirds of all the exemptions were given on incomes under £SOO, and it is interesting to see what was the ultimate result in taxation per .-.j. of the assessable income, according to classes;— Class. Per Tax- Per £1 payer, of Income. Persons, firms, etc. .. £25 Is 3d vinies 736 8a 9d for debenture i, 313 Rs Id Non-resident traders .. 26 Is 2d It is pointed out that, the effect; of the non-aj ipbcal ion of exemptions and the progressive rate of the tax is strikingly shown in the case of companies, which paid 64j per cent, of the total taxes. The average mroni'* between £3OO and £4OO pays less than L< l in the £, while the £IOOO earner up to £2OOO paid lid in the £. LAND TAX AND EXEMPTIONS. The value of land dealt with in the last land tax returns was seven millions sterling more than in the previous year, the total being £228,522,000 of unimproved value. Farming and allied pursuits accounted for over 144 millions, commerce and trade for 16 millions of land value, while miscellaneous end unspecified (which it is believed covers much rural land) represented a total unimproved value of over 49 millions. The exemptions from tax due to mortgages on land accounted for the elimination of over 13 millions sterling from the taxable value, while hardship disposed of £168,275, which is a small reduction on the total of the previous year._ Mortgages eliminated over 69 millions sterling of value, and of this amount farmers held 52 millions. The high unimproved value of land held by companies and banks is shown when the average tax per £IOO of taxable balance is examined. This is indicated in the report as follows: Farming 14s 6d Professional 18® ltd , Manufacturing and industrial .. 17s 6d Commerce and trade .. .. .. 21« 5d Bunking, Insurance, and Finance 52a 7d Transportation 13a lid Miscellaneous 14* 8d The average tax per taxpayer worked out at £25. and the average tax over the taxable balance was 16s 8d per cent.