TWO TAXING BILLS.

Otago Daily Times, Issue 20191, 31 August 1927, Page 12

TWO TAXING BILLS.

SUMMARY OF CONTENTS. (From Our Parliamentary Reporter.) WELLINGTON, August 30. The Annual Laud and Income T Rill was introduced in the House of Representatives late to-night by Governor-C icral’s Message. The Bill is the same as that of last year except with regard t the rates of income tax payable on income derived otherwise than £rn lebentures. Under last year’s Act the miuir um tax on such income was fixed at sevenpcnce in the £, and the maximum ~t 4s 6d in the f. Between these extremes a graduated scale increased for every £ of income was fixed. This year’s Bill preserves the same limits of sevenpcnce and 4s 6d respectively, but provides a series of finer graduations in the scale between these limits. The new schedule is whor the income on which the tax is payable does not exceed £3OO the rate of 7'l for every £1; between £3OO and £ISOO -wcnpence in the £ increased by l-100th of a penny for evejy £ in excess of £300; between £ISOO and £3900 the rate is L 7d for every £, increased by 3-400ths for every £ in excess of £1500; between £3900 and £5900 the rate is 3s Id for every " increased by l-200th of a penny for every f in excess of £3900; when the income exceeds £5900 the rate is to be 's lid for every f, increased by l-400th of a penny for every £ in excess of £5900, 'nit so as not to exceed in any case the rate of 4s 6d in the £. The tax payable shall be reduced by 10 per cent, of so much as is levied in respect of earned ’-come, provided that if the earned income of the taxpayer for any year exceeds £2OOC the reduction provided for by this clause shall be made only in respect of the sum of £2OOO. An amendment of the provisions governing the special income tax exemptions up to £3OO is contained in the Land and Income Tax Amendment Bill. Under the present law the maximum deduction of £3OO is reducible by £1 for every £1 of assessable income in excess of £6OO, so that the exemption is gradually diminished, and disappears entirely with an assessable income of £9OO, The clause provides .that this process if reduction shall commence with an income in excess of £450. From £450 to £750 the proposed reduction in tho amount of the exemption is £1 for every £2 of income in excess of £450; from £750 upwards tho reduction is at the rate of £1 fo £l, until again the exemption disappears at £9OO. By section 116 of tho Land and Income Act, 1923, every company that has issued debentures is made tho agent of its de-benture-holders for the making of returns and tho payment of debenture tax. It is proposed to extend to companies a privilege that was extended to local bodies in 1921, that is, a company may rid itself of its statutory obligation to make returns and pay tax on behalf of its debentureholders by supplying to the Commissioner of Taxes certified particulars as to tho debentures and their holders sufficient to enable him to make a personal assessment.