PENALTY ON RATES

Otago Witness, Issue 3337, 27 February 1918, Page 39

PENALTY ON RATES

ITS REMISSION ILLEGAL. (Feom Oue Own Coreespondest.) LAWRENCE, February 14. At the last _ meeting of the Tuapeka County Council a letter was read: from Messrs Todd and Co., on behalf of various clients, applying- for tlio remission of the 10 per cent, penalty on rates which the council formerly announced would be imposed on all rates unpaid by December 24. After some discussion, contrary to the advice of the council's solicitor, -who held that the penalty that had been formerly imposed could not be re mitted, the clerk was instructed to refund the penalties received prior to the meeting and to remit the penalties on all rates tendered and received during January, provided that ratepayers who tendered rates availed themselves of the concession before February 28. Acting on tho instruction of the chairman, the council's solicitor (Mr Moore) communicated with tho Controller and Auditorgeneral on the subject, tho reply received being in tho following terms: —"In reply to your letter I have to inform you that the" Audit Office .view of the 10 per cent, penalty is that after formal imposition by a local body it becomes an integral part of the rate liability (and correspondingly at local body office) and can no more legally be remitted than tho original rate. This view is upheld by the Crown Law Offioo and. as I interpret your letter, also agrees with your own opinion on the subject." Cr MTnerney has given formal notice to move at the next meeting of the council that the motion passed at last meetinc in reference to tho remission of the penalty on rates be rescinded.