WAR TAXATION

Southland Times, Issue 17785, 14 July 1916, Page 5

WAR TAXATION

FiXA.vcr; r.11,1. amexdmf.n'l's. i Special 1o the Times). WELLINGTON, .Inly 1". Amendments to tlio Finance Bill which wore iiidicatffi by Sir .I.G. Ward in last night's speech won’ introduced this evening. It is proposed that tin- income tax be increased on assessable incomes by lid in the £ up to £!>(■(), and Is in the £ over 190(1, in.stea.il of a flat addition of Is on all taxable incomes. The clause referring to “standard incomes" is to be'amended by exempting 71 tinstead of fi per cent.) of the amount of capital employed by the taxpayer in the production of his income, together with such additional sum, not exceeding £6OO (instead of £500), as the Commissioner deems just and reasonable. It is proposed to omit clause 2o making "special provisions with respect to incomes derived from investments on mortgage or from rent.’’ In clause 21, "deductions by way of depreciation from stock in trade," it is proposed that the commissioner may allow to the taxpayer in respect of his assessable income derived from any wasting asset, a deduction for depreciation not exceeding 2i per cent, of the value of that asset as at the commencement of the income year. To clause 29, "salaries and wages not chargeable with exrt-ss profits duty,” it is proposed to add the following subclauses :—(3) If any person received in respect of his services for the income year an amount les than £GOO as salary within the meaning of this section, and also received additional payments by way of commission or share of profits or sums computed by reference to such profits, the commissioner may regard as salary such part of such additional payments as is sufficient to increase the salary to £600; (ij, in any ease where the taxpayer is a company the aggregate amount allowed for the income year as remuneration in respect of the services of directors shall not exceed the average annual amount allowed in respect of such services during the three years ended 31st March, 1914 (in the case of companies carrying on business during three years) and in any other case, shall not exceed £ISOO.

In clause 27, "mode of determining amount of capital,” it is proposed to add the following proviso : —“The commissioner may make such allowance as he thinks just and equitable in any case where the amount of capital employed by the taxpayer in the production of his income in any year has been substantially increased or decreased during that year.” A special Board of Appeal to hear appeals against the decision of the commissioner is to he appointed, presided over by a judge of tile Supreme Court. Two other members, who will not be members of the Government Service, will be appointed by the Governor. The board will hear objections in private and its decision wdll be final, except on law points. Power is to be given to the Governor in Council by regulation for the restriction of the investment of moneys beyond New Zealand, and rates of interest that may be paid ?>y banks or other corporations or person on moneys invested in New Zealand by way of fixed deposit or by way of mortgage of land. r Among other proposed amendments is one providing that interest on fixed deposits shall be computed from the date of deposit. There are several other amendments of a more or less technical character.