TO SHARE TAXES FAIRLY

Taranaki Daily News, 24 September 1930, Page 6

TO SHARE TAXES FAIRLY

LIFE COMPANIES’ INCOME FOREIGN CONCERNS AFFECTED. NEW CLAUSES IN TAXATION BILL. (By Wire—Parliamentary Reporter) Wellington, Last Night. Two alterations in the Land and Income Tax Amendment Bill, passed by the House of Representatives four or five weeks ago, are effected by amending clauses introduced and read a first time in the House to-night. The Acting-Prime Minister explained that the first amendment is devised to bring foreign life insurance companies operating in New Zealand into line with New Zealand companies, including the Government Life Insurance Department, which has in the past paid more than its fair share of taxation. _ i The clause as originally passed, lie said, was defective in that the profits of a life insurance company were not clearly defined. The right of companies to deduct free of tax income and to a special exemption of 5 per cent, on the unimproved value of premises was also in doubt. The clause now submitted remedied defects. No. alteration in the intention of the Legislature was involved. In the clause as amended the intention was more accurately defined. The second amendment provides that insurance companies shall be assessed for income tax at a reduced rate. Mr. Ransom recalled that while the Bill was in committee the Prime Minister promised to meet a deputation from the life insurance offices’ association before the legislation was finalised. The present Bill effected a reduction of the rate from one-half to nine-twentieths as the result of the representations made by the association at ,the interview referred to. Mr. Ransom added that this involved a concession of about £12,000 in tax.