LAND AND INCOME TAX

Southland Times, Issue 18934, 22 September 1920, Page 5

LAND AND INCOME TAX

CHAMBERS OF COMMERCE CONFERENCE. ROYAL COMMISSION ADVOCATED. (Per United Press Association.) WELLINGTON, September 21. The Land and Income Tax Assessment Bill now before Parliament was considered ;it a conference of representatives of Chambers of Commerce throughout New Zealand to-day. Mr G. Frostick (Christchurch) moved; “That the interests involved in (he Land and Income tax Amendment Bill are so vital to the prosperity of the commercial and trading community of the Dominion that the Government be asked to postpone consideration of (his Bill in Parliament until next session, and in the meantime to appoint a Royal Commission with full and unrestricted powers to make inquiries,”

Mr A. F. Roberts seconded (he motion, which was carried.

If was agreed that (he various sections of the community involved should lie represented on the commission.

The conference decided to urge that the reinstatement of the clauses providing for the removal of busines.? premises from the operations of the land tax ; to recommend that income received from superannuation investments be exempt with a limitation. The conference favoured the taxation of municipal trading concerns. Dealing with the taxation of debentures, the conference viewed with disfavour the proposal in section 14, whereby paragraph (4) of section 84 of the principal Act is repealed. It was decided to urge that earned income of a taxpayer shall not in any vc.a" be deemed to exceed the. sum of £2OOO.

TAXATION OF LOCAL BODIES

PROTEST BY TOWN COUNCIL

A communication from the Dunedin City Council, which came up for consideration at last night's meeting of the Town Council, protested against the Government's proposal io tax the income of local authorities anil urged other local bodies to make representations to the Government with a view to preventing the proposal from becoming effective.

In moving that the Council support the resolution. Councillor Carswell said that, he was no) in favour of the Government, taxing municipal trading departments tinless 'he Council was given the right to tax Government properties within the Borough. Councillor McDonald seconded the motion, and said that, lie endorsed (he view expressed by the previous speaker, not that the present finances of the Borough would allow th-' Govemmrnt to re.ap much from the profits of municipal undertakings. It ■•ad i'< -■ n a long standing grievance, that, town councils had not been able to rate Government properties, and the subsidy allowed bv the Government amounted to a mere pittance. The principle of imposing a tax upon concerns which were practically run for the benefit of the community, was a wrong one. The profits on municipal undertakings were exceptionally small, hut if the Council had to find additional revenue it would be impossible to supply the people at such cheap rates. Councillor Blake said that the principle involved in the proposal was a wrong one and existed only in a Government which was afraid to tax large landowner.-. Relaxing municipal enterprise the Government would he placing an extra burden tmon a large section of the community which were not in a posit-on to stand it. The Council should back up the Dunedin Council for all it ■■■,'> worth o' assist to make the proposal a “washout." (k tuviHor I.nlicmn said that (he re-iter -is one which should be looked into, but tit first glance if certainly appeared very wiring for the Government to (arc municipal affair-. The Council was in a very similar position to the Government in its relation to the

vrdo'UTT-'nt the country and it seemed to him that t.he imposition of such a tax simply meant (.eking money out of one pocket. to put, in in another. It, did not, appear tight for the Council to tax Government properties and on (he other hand it. was equally wrong for the Government, to tax the Conned.

Councillor Mackrel! expressed the opinion that the policy contained in the proposal was a short-sighted one and when it was ('rafted the Minister probably had some of the municipal industries which had recently been comeneed in the north, in view. In Southland the Electricity Department was about the only one the Government could tax.

The motion was carried, and it was de cided to forward a protest to the Minister.