EXCESS PROFITS

Opotiki News, Volume III, Issue 319, 4 October 1940, Page 3

EXCESS PROFITS

TAX BILL TABLED STANDARD INCOME BASIS EXEMPTION .UP Tel £SOO PROVISIONS OF MEASURE WELLINGTON, yesterday. The Excess Profits Tax Bill, introduced in the House of Representatives this afternoon, is in charge of the Minister of Finance, the Hon. W. Nash. The measure provides for the fbr-: ing of standard income based on the average of the. three years 1937-38-39, plus 30 per cent., or the best of: the three years which ever is the lesser.

It will provide for special cases in connection with companies. Where they cannot select the average standard income, they can have 6 per cent, on the actual capital operating in the company, namely, the difference between their assets and liabilities, less social security and national security taxes and the special war tax on inccmes. There is provision in connection with another type .of taxpayer who has capital invested in a company and who is entitled to payment for personal exertion. They can have a sum assessed by the Commissioner of Taxes for their personal exertions, being not less than £SOO and not more than £IOOO. i There will be no excess profits tax in any case on incomes of less than £SOO.

The bill sets out in detail the method of ascertaining excess profit in comparison with the standard income and, after all taxes are deducted, the residue is to be divided with the State, which will take 60 per cent., leaving 40 per cent, in tlie hands of the'taxpayer. A committee will bo appointed to deal with taxpayers’ appeals. The decision of this committtee will be final.