EXCESS PROFITS.

Poverty Bay Herald, Volume XLIII, Issue 14052, 24 July 1916, Page 9

EXCESS PROFITS.

ASSESSMENT OF INCOMES. j THE PERSONAL EXERTION * ALLOWANCE. Considerable doubt has existed m commercial circles regarding the classes, of taxpayer to whom clause 10 of the new i Finance Bill is applicable. The clause, as amended, runs as follows: — "For the purpose of this part of the Act, the term 'stated income of the taxpayer' means m the discretion of tlie taxpayer first (a) the average yearly assessable income for the three years ended March 31, 1914, or (b) his average yearly assessable income for any two years of .the said three years, (c) his assessable income for any. one of the three years, (d) a sum equal to 7£ per cent, of the amount of ' the capital employed by the taxpayer m the production of his income as at April 1, 1915,. together wmUi such additional sum (not exceeding £600) as the Commissioner deems jusfc and ,reasonable as remuneration of the 1 personal exertion of the taxpayer during the .income year m the production of his income, provided that m all cases where m the opinion of the Commissioner the standard, income .cannot be ascertained m the manner referred to an paragraphs (a), (b), or (c), it shall J he ascertained m the manner referred ' to m paragraph (d)." The question has been whether the clause .was applicable to private limited liability, companies as well as to private traders. A reply from Sir Joseph Ward h to the effect that "clause 10 of the Finance Bill applies to private limited liability companies just as ' to other taxpayers." '■„•■-.•