TAXATION SYSTEM

Otago Daily Times, Issue 24910, 8 May 1942, Page 4

TAXATION SYSTEM

OVERHAUL ADVOCATED HINT OF COMING CHANGES (F.0.P.R.) WELLINGTON, May 7. An overhaul of the taxation system to give straight-out taxation on individual incomes only and to remove company taxation was advocated by Mr C. Morgan Williams (Govt., Kaiapoi) in his speech in the financial debate in the House of Representatives to-day. The present system, he contended, was cumbersome and complicated, but he admitted that the task of overhauling it would give anyone a headache, A start had been made by the Government in proposals coming down very soon, he added. Speaking in favour of paying for the war entirely out of taxation, Mr Williams said he knew that that was a counsel of perfection, but it should be possible from day-to-day production to pay for the war. The evils of inflation from borrowing bore very heavily on people with fixed and small incomes. Dealing with the present system of company taxation, he said it was anomalous and inequitable. It was still possible for wealthy persons to evade their proper share of taxation by spreading their investments over several companies. A single man earning £4OOO from one company paid income tax of £IBO4, but by spreading his investments oyer seven or eight companies to obtain the same income he paid only £BBB. One reaspn why income tax should be on individuals and not on companies was the need for equality of sacrifice. Some people obtained their incomes free of lax.