BANK DEPOSITS SEIZED

Otago Daily Times, Issue 25563, 16 June 1944, Page 4

BANK DEPOSITS SEIZED

AUSTRALIAN TAX EVADERS A STORM OF PROTEST (N.Z.P.A. Special Aust. Correspondent) (Rec. 7 p.m.) SYDNEY, June 15. The disclosure that the Commonwealth taxation officials have seized the bank deposits of people believed to have defrauded the Taxation Department has aroused a storm of protest throughout Australia. An authoritative warning has been given that such interference with private bank accounts will increase hoarding. The manager of one of Australia’s largest - banking companies says that already at least £100,000,000 in currency is being hoarded here.

“No one has sympathy for the shirker of taxation, who brings additional burdens on to honest taxpayers, but surely taxation evasion should be proved in court,” said the Deputy Leader of the New South Wales Opposition, 'Mr A; Mair.

“An important aspect of this matter is whether it is not contrary to British principles for the Government, as creditor, to be able to satisfy a claim from a debtor’s assets without a court order,” said the president of the Constitutional Association, Dr Frank Louat, who is a member of the advisory body appointed by the Federal Government to review the war regulations. “We fear that the revelation that Government officials can force the banks to disclose private accounts will cause a panic and hoarding will increase to an unheard-of degree,” said a leading bank manager. “It "is impossible to compute the amount of cash being hoarded by people who are afraid to put their money in banks. There is three times as much money in circulation in Australia now than before the war. Some people are carrying it around in pocketsful and others are busying money in jam tins or putting it up the chimney.” , Safe deposit managers report an enormous increase in the past two years in the demand for private boxes. Australian taxation officials have the power to investigate the contents 'of safe deposit boxes, but not the power to seize the contents.