LAND AND INCOME TAX.

Otago Witness, Issue 2428, 26 September 1900, Page 10

LAND AND INCOME TAX.

The new Land and"lncome Tax Bill which has besn introduced extends the definition of ''agonL'' (says the "correspondent of tho Lyttellon Times) to secure the tax on income to absentees by bardbs chiefly, but in como capes by private firms who disclaim the agency. Under " Owner," a proviso has been added to settle m the negathe the point which has been raised that the trustee, or agent, is tho owner v, hen the beneficial owner is non-resident in the colony. Special ne>v provisions are introduced with respect to nonresident agents and traders, making it^jllegzl lor them to caivy on business unless holding a warrant from the Commiasionsr of Taxes or collector of customs. The commissioner may from time to time assess ony specified non-resident agent or non-resident trader for income tax in respect of ary specific transaction, or of all transactions during qnj' specified period, and may fix the amount "of tae lax at the rate then last in force (if the rate of tax is not then fixed b}' law), and on the assumption that the specified transaction, or, as the cass may be, all the transactions, during the specific period have produced a net piofit of 5 per cent, of the gross proceeds resulting therefrom. Under the heading of general exemption, a fricndlv society carrying on business outside its c'iicles of membership is not exempted from taxation in respect of so much of its business as is carried on outside such circles, and a new subsection exempts co-operative dairy factories from income tax on milk. Tlndei assessment of income, where a mining company is eiioraged in. business otl^ei than mining, the iiicome from sue. non-mining business is assessable in tbe ordinary manner. Tho preface slate's that considerable incomes are derived from treating timber, quarrying intone, carting gravel, pand, etc., making bricks, mining, and kindred undertakings carried on upon leasehold land, and it is almost impossible to assess the resulting leasehold interests for land tax. The incomes demed have, therefore, been mode assessable for income tax, the lessee's inierepfc in the land being made exempt. Another new clause has for its object to assess for income tax the manufacturer's profit in all ca-es wheie ov.ners or occupiers of land Fell timber or flax, being tho produce of thcii land, in any but it^, natural state. Provision is made to bring under the operation of the income tax cusps where a large butchery business is carried on by an owner, who tells many limes o~\ er as many stock as his land will graze. On tho profits realised by the sale of this surplus it is claimed that he should pay tax, as under the English act. Hilheito such owner has only come under the land tax. A new clause is incorporated to remove a grievance which exists as between a taxpayer in business, who occupies premises, for which he pays rent, and one who occupies his own freehold, or "remises erected on leasehold ground. Til the first cosg rent is deducted in the hands of the landlord as not Taxable, being income derh cd from land : in the second caso the allowance is limited u'hder the existing lav to 5 pei cent, on the amount on which land tax is paid. This may be nothing, and in tho rase of premises on leasehold land no allowance can now be made as an equivalent of the rent paid by a tenant. It is proposed to allow to a freoholdei a deduction of 5 per cent, on the capita] value of his business premises, while a leaseholder, who is now entitled to deduct his ground rent only, will be allowed a further deduction of s 'per cent, on the capital value of any leasehold interest he may own in his premises. This will exclude land, with its profits and liabilities, from the income tax system.