Public Opinion
FARMERS AND INCOME TAX LAW To The Editor Sir,—ln this morning’s issue of The Southland Times there appears an article by the Hon. Adam Hamilton on the effects of recent changes in the income tax law. If this article were accepted as putting the position correctly, it would cause a feeling of dismay on the part of the farmers who read it. There seem to me to be certain inaccuracies in the article. Take, for instance, the case of the. farmer who, through the new regulations, has just this year become liable for income tax; the returns on which the present years income tax is levied, had to be completed by 'May 30, 1940. In most cases they deal with the period beginning on April 1, 1939, and .ending on March 31, 1940. If the live-stock values were altered at the beginning of this period and entered at the same figures at the end, this would make no alteration in the Social and National Security taxes payable for that period, as Mr Hamilton suggests it would. It would, however, alter the Social Security tax which should have been paid on the previous year. I have seen no suggestion that the department intends to claim this. When farmers first had to make returns for unemployment tax, it was during a period of the lowest values for live-stock since the inception .of the freezing industry. It is a grave injustice that farmers later going out of business should have had to pay income tax on the appreciation to normal values of their stock. I understand the department’s aim - is to rectify to some extent this position. . I believe it would be in the interests of the farmers generally if Mr Hamilton’s article were referred to the Commissioner of Taxes, and he was asked to comment on it. —Yours, etc., t A. G. DIACK. September 19, 194.0.
[This letter was referred to Mr Hamilton who made the following comment: “The purpose of my statement was to clarify, if possible, a situation which is confusing a great many people. It is difficult even for skilled persons to ascertain from the reading of an Act the true effect it will have, so much is left to the administration. Until that is fully experienced, or the administrative intention made clear, it is almost impossible to understand all the implications. The amending legislation to which I referred is of importance to all farmers, and I agree that my interpretation should be the subject of o±ncial comment. Leaving detail aside altogether, I feel sure that the principles involved, as I set them out in the statement, are worth the close attention of all farmers.”]
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/ST19400923.2.78
Bibliographic details
Southland Times, Issue 24238, 23 September 1940, Page 7
Word Count
448Public Opinion Southland Times, Issue 24238, 23 September 1940, Page 7
Using This Item
Stuff Ltd is the copyright owner for the Southland Times. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.