INCOME TAX LAW

Southland Times, Issue 23610, 10 September 1938, Page 11

INCOME TAX LAW

PETROLEUM MINING COMPANIES EXTENSION OF PROVISIONS (From Our Parliamentary Reporter) WELLINGTON, September 9. Various minor amendments to the existing income tax law, particularly aS it applies to petroleum mining companies and dairy companies, are contained in the Finance Bill which was introduced in the House of Representatives today by Governor-General’s Message. The special provisions, made last year for the assessment of income tax on petroleum mining companies are extended so that they will apply to companies engaged in New Zealand in development work in relation to prospecting or mining for petroleum. A new definition of the taxable income of petroleum mining companies is also included and special provision is made for dealing with returns of share capital. In the income tax payable by dairy companies, it is stated that the commissioner, in computing the taxable income of a dairy company covered by legislation, will allow as expenses any sums set aside to provide. for losses arising from an approved rationalization plan. The provision -will not apply to any losses incurred by a company in the elimination of any dairy factory belonging to the company or in the limitation of the areas of supply. The legislation in this respect is to be made retrospective to April 1, 1936.

Various technical amendments are included covering the special provisions made last year for changes in the date of annual returns of income. Provision is also made for the granting of relief to taxpayers who have observed the return dates for income between March 31 and October 1 in each year up to and including 1936.