THE FINANCE BILL

Southland Times, Issue 17755, 5 September 1917, Page 5

THE FINANCE BILL

VARIOUS AMENDMENTS.

FAMILY EXEMPTION INCREASED,

THE COMPULSORY CLAUSE,

(Special to the Times).

WELLINGTON, Sept. 4

Amendments to the Finance Bill were brought down by Vice-Regal message this afternoon. New sub-clauses are added to clause 37 (compulsory subscriptions), providing for the establishment of a special board of appeal, consisting of the Controller and Auditor General (who shall be the chairman), the Commissioner of Taxes, the Secretary to the Treasury, and the Government Insurance Commissioner. Every appeal shall be heard and determined in private.

For the purposes of an appeal the board shall have the powers of a Commission appointed under the Commissions of Inquiry Act, 1908. The second schedule referred to in clause 36 (rates of special war tax), is struck out, and the following substituted (1) On income assessable under sub-section 3, of section 112 of the Land and Income Tax Act, 1916, the special war tax shall be at the rate of Is 6d for every £1 thereof; (2) in all cases other than those referred to in the last preceding clause the rate of special war tax shall be determined as follows : —(a) Where the income on which the special war tax is payable does not exceed £4OO, the rate shall be 6d for every £1 thereof, increased as provided for in paragraph (c) hereof; (b) where the income on which the special war tax is payable exceeds £4OO, the rate shall be 6d for every £1 thereof, increased by one two-hundredth part of Id for every £1 in excess of £4OO, but so as not to exceed 3s in the £l, and further increased as provided in paragraph (c) hereof; (c) to the rates prescribed by paragraphs (a) and (b) hereof, respectively, there shall be added an additional rate equal to 50 per centum thereof, and the total shall be the rate of special war tax payable by the taxpayer. The State Fire Insurance Office is to pay income tax. A new section dealing with gold duty reads as follows:—“ While this section remains in force duty shall be payable on gold held on behalf of the Imperial Government by any bank carrying on business in New Zealand as if that gold had been exported from New Zealand. Such duty shall become payable immediately on the receipt by the bank of the purchase money, and shall be paid within fortyeight hours thereafter. All money so paid shall be dealt with as if it had been paid under the Gold Duty Act, 1908. This section shall remain in force during 'the present war, and for six months thereafter.”

A new clause is inserted to protect banks in respect to advances to clients for investment in the War Purposes Loan. The special exemption in respect of dependent children of a taxpayer is extended. At present an allowance of £25 is made for every child up to five. The limit of five children is now removed. A clause dealing with foreign insurance companies provides that the taxable income of a foreign insurance company carrying on the business of insurance shall be deemed to be a sum equal to its total investments of any kind in New Zealand, diminished by an amount equal to two per centum of its investments in New Zealand, the income from which is not exempt from taxation. In the Bill as printed the compulsory subscription clause makes it the duty of every taxpayer to subscribe whose taxable income for the income year, ended March 31st, 1917, was not less than £7OO. The year 1917 appears to have been a misprint. It is now altered to 1916,