PARLIAMENT.

Colonist, Volume LVII, Issue 14138, 14 July 1916, Page 3

PARLIAMENT.

TAXING' BILL,

IMPORTANT GOVERNAOSNT AMENDMENTS.

(From Ouu Own Oorrespondekt.)

W&Hngton, July 13. A'large number of amendments to the Finance Bill were introduced in the House of Representatives to-night. Instead of a 5 per cent, flat rate it is proposed that income-tax be increased on assessable incomes by 6d in the £ up to £900, and Is in the £ over

The clause referring to standard income is amended to exempt 1\ instead of 6 per cent, of amount of capital employed b3; tho taxpayer in the production of his income, together with such additional sum not "exceeding £600 (inste&d of £500), as the Comraissioncr deems just and reasonable. It is proposed to omit clause 20, special provisions with respect to income derived from investments on mortgage or from rent.

In clause 21, deductions by way of depreciation from stock-in-trade, * it is proposed that the Commissioner may allow to the taxpayer in respect to" his assessable income deiived from any wasting asset a deduction for depreciation not exceeding 2£ per cent, of the value of that asset at the commencement of the income 3 ear. To clauso 25, salaries and wages not chargeable with excess profits duty, it is proposed to add the following subclauses :—

If any person has received in respect ta his services for the income year an amount less than £500 as salary, and has also received in respect of his services additional payments by way of commission or share of profits, or sums computed by reference to such profits, the Commissioner may regard as salary for tho purposes of 'his part of the Act such part of such additional payments as is sufficient to increase the s;^arv to a sura of £600.

in any o-.ise v/heve' the taxpayer is a (■■Tinany, the aggregate amount a 1 lower' for the income year as ronnmei Jation i>- respec-fc of tho sem'cos of directors si)all not oxcev.cl tlie average annual amount allowed durinp; the three years ended on March 31st, 1914. and in any other case shall not exceed tiie sum of £1500.

The Commissioner may vrifiko *ruoh allowance as ho thinks just and equitable in ?.ny case whore the amount of" capital employed bj T the taxpayer in the production of his income in any year has been substantially increased or decreased dining that year. A spociial hoard of appeal against decisions of tho. Commissioner is set up, to ha presided over by a judge of the Supreme Court, with two other members appointed by the. Governor. The Board is to hear objections in private, and its decision i-.- io h-<j- iinal. Whore hardslv-r! -•"' '"''l be caused by the method of ;•■■:■■ -s»ii/.r: standard income, tho ConiTYns.sio'U1;- hp.s power to take the < ire::mstance?; into consideration. , j Whore income is subject r- war profits tax in New Zealand nr>cl Emrland, the Miaister o fFinanco m;-'v a^roo, to an | assessment of the proportions between those countries, avoiding doviblc tax. The House consid-od tho Bill in Committee to-ni^ht. a general discus-i ! sion on the short title occupy inp; so.-v-; ieral hours JMerribars agreed that most, of the points vais-r-.d hed been, met by J Sir Joseph Ward's numerous amend-} : mcMitv. " Thf title was passed I ;cfte?- 11 o'clock, und the- Oomnrittco -pro-] ceedeci to discuss individual clauses. |