CUTTING DOWN

Southland Times, Issue 21427, 23 June 1931, Page 7

CUTTING DOWN

BUDGET COMING. THE FEDERAL ARRANGEMENT. INCREASED INCOME TAX. (United Press Assn.—By Telegraph—Copyright) Canberra, June 22. The Fededal Government’s Budget will be brought down within three weeks. The increased income tax is expected to yield £1,500,000. A WAGES TAX MR LANG’S LATEST. ' Sydney, June 22. The Sydney newspapers say that the wages tax scheme drafted at the instance of Mr Lang will be submitted to the Labour caucus for approval. The scheme embraces the retention of the 1/- in the £1 on incomes over the basic wage and a graduated tax on all earnings on the following basis of £2OO to £250 1/- in the £1; £250 to £3OO 1/3 in the £1; £3OO to £350 1/6 in the £1; £350 to £4OO 1/9 in the £1; £4OO to £450 2/- in the £1; £450 to £5OO 2/3 in the £l. STATE SAVINGS BANK. rune 22. The Minister of Agriculture, Mr Dunn, stated: "We are hopeful that the Government Savings Bank of New South Wales will soon re-open as the result of negotiations the Premier is conducting with the Federal Government.” TAXATION PAYMENTS THE INSTALMENT PRINCIPLE. In New South Wales taxes are to be paid by instalments by those who cannot put down a lump sum. The Commissioner of Taxation has publicly stated that he must get in as much as he can, and therefore extensions of time for payment had been given to June 29. That did not mean, he explained, that in cases of hardship or necessity there would not be any further extensions. His duty to the Government was to have as much as possible of the tax collected within the financial year. If, however, there was satisfactory evidence that it was not possible to pay the whole amount within the year, payment of the tax by instalments would be permitted. Should it be found that it would be a real hardship to demand even instalments at present, an extension would be given for the payment of the whole tax. No general ruling could be made. Each case would be considered on its merits.

There have been numerous applications for extension because money for the purpose had been tied up in the State Savings Bank, and extensions of time for payment had been granted. . Business firms, too, had produced evidence that they could not pay income tax in full within the financial year, without seriously injuring their business. These cases had also been considered on their merits, and relief given where it was considered necessary and justifiable. It was not part of the policy of the Taxation Department to drive business men to the Bankruptcy Court, simply because they could not pay income tax within a prescribed period. Some firms or individuals had filed schedules, and on the presentation of the case in the Bankruptcy’ Court it had been found that they had not submitted an income return, as bound by law. In such instances the Department made an assessment and the income tax became a claim with other creditors of the estate. In some cases there was evidence of a desire to withhold payments, and in such cases prosecutions were instituted.