THE INCOME TAX.

Sun (Christchurch), Volume V, Issue 1276, 15 March 1918, Page 8

THE INCOME TAX.

EFFECT ON COMPANIES. [Special to The Sun.] WELLINGTON, March 14. Recently the secretary of the Association of Chambers of Commerce forwarded to the Minister of Finance certain resolutions which were passed at the last conference of Chambers of Commerce on the matter of taxation and contributions to war loans. Sir Joseph Ward, in the course of a reply already published, stated that he was willing to consider representations on these matters that might come from the association. In a further letter to the Minister of Finance, the secretary of the association (Mr H. D. Vickery) states:— “I am directed by the president (Mr James Macintosh) to state that he notes with interest that you are willing to consider representations on these matters which may come from the association. In proposing that a committee of business men should be associated with officers of the Land and Income Tax Department for the purpose of making investigation, it was never thought that this committee should have access to any records of the department which would in any way result in divulging information that it is necessary should be kept secret. What, however, is realised is that the department is the only source which can furnish such statistical data as would enable an estimate to be made of the possible effect on revenue if an altered system of income tax was introduced. For example, the department can supply information such as is included in the New Zealand Year Book 1915, page 823 et seq. “As registered companies, as a class of taxpayers, have the largest assessable income, it is essential to know what would be the effect in the resultant return of tax if some modification were made in the present system of taxing the incomes of companies. Furthermore, the business community realises that the officials of the taxation department are experts in taxation matters. It is thought that a committee of investigation constituted as suggested would give the best results. The departmental officers could supply necessary data, without in any way divulging matter which should not be disclosed, and their expert knowledge and experience, together with the assistance of two or three commercial men, should result in proposals which are likely to provide the necessary revenue, and to be acceptable to taxpayers. “I am directed respectfully to urge that it is believed that nothing but good could x'esult from the labours of such a committee oT inquiry. With reference to the concluding portion of your letter I am replying to this by separate letter,”