TAXATION QUESTIONS

Otago Daily Times, Issue 22710, 24 October 1935, Page 12

TAXATION QUESTIONS

AMENDING LEGISLATION

SEVERAL MINOR ADJUSTMENTS

(Fkom Our Parliamentary Reporter) WELLINGTON, October 23. Payment of injome tax by the trading banks is dealt with in the Land and Income Tax Amendment Bill, which was introduced and read a first tune in the House of Representatives to-night. The Bill makes no changes in the incidence of the tax, but consequent on the recent amendment of the Banking Act on the formation of the Reserve Bank it is provided that the taxation of the trading banks will be computed on a basis of their monthly returns to the Reserve Bank instead of their quarterly returns as was formerly the case. Co-operative concerns are exempted from income tax, and the Bill will add pig-marketir.g associations to this class.

Explaining the provisions of the Bill, the Minister of Finance (Mr Coates) stated that pig-marketing associations were really co-operative concerns, and the purpose of that section of the Bill was to bring them into line in relation to income tax and taxes generally With co-operative dairy companies. Mr Barnard: More help for the farmer. ,_ Mr Coates: No one is getting any special profit. It is all shared. Another clause, continued Mr Coates, provided for relief of taxation on foreign concerns trading in New Zealand. This matter had a direct bearing on the establishment of trading agreements with foreign countries. Foreign concerns trading in the Dominion had to pay a supertax here in addition to the tax on profits in their own countries. The position was quite unfair and was having an embarrassing effect on the agreement in existence at the moment.