INCOME TAX ON TIMBER.

Colonist, Volume LIV, Issue 13438, 8 June 1912, Page 2

INCOME TAX ON TIMBER.

AMENDING LEGISLATION URGED

[United Pit ess Association.]

Auckland, June 7. The decision oi: the Appeal Court that the income tax must bo paid on the value of standing timber lias destroyed tho hopes 'that were still entertainod by sawmillers that they would be relieved of this taxation. A deputation repi'Gsoiitiiiy tho Auckliiud Sawraillors' Association was introduced to tho Minister of Finance (tho lion. A. M. Myers) this afternoon and it wgod that tho Land and Income Assessment Act should bo amended to prevent its application to standing timber Mr. S. Milroy explained that, as tho law stands sawrnillors have to pay income tax not only on the legitimate profits derived from years of operation but also on timber untouched. This interpretation of tho law, he said, wan based on the technical view that standing timber was "land," and ho urged that the Legislature had not contemplated such a result. Mr. Haider said tho department interpreted the Act in a peculiar way, for although it taxed timber that had been purchased as a block, it made no tax upon standing timber purchased at por 100 foot. Mr. Myers pnid tho matter would be cfvflidoiw!, nr.vl he wor.lcl communicate with tho Afi!;rv-ir.tio:t f>oforc snaking any re^omiivmdntion to the Cabinet. Mr. i). Goklie- added that the Minister b.r.t year (Sir Joseph Ward) 1-ad pro* I'iron, in introduce the runcndm'Mit t/i t.lm \i-a\- that was desired by sawmiilors.