WAR LOAN AND TAXES.

Timaru Herald, Volume CVI, Issue 16308, 9 August 1917, Page 8

WAR LOAN AND TAXES.

KXI'LAXATIOX BY SIR JOSEPH WARD. Certain joints relating to the war loan and the new Taxation proposals have been considered capable ot more than one interpretation (states '"The Press."'l We submitted souio of these, points to Sir Joseph Ward for a decisive settlement, and Sir Joseph has courteously telegraphed to us brief but clear explanations of what is proposed. The points upon which information was sought were:— (1) Whether the war loan is to be free of income-tax and of the war tax, or _ free of income-tax only hut subject to war tax. ("2) Whether tb.o progressive land tax (ranging tram lid to 10-id) applied to mortgages, being a. levy on the unimproved value of mortgaged land. (3) AVhothor, for example, a company ivith large investments on aortgage (say £200.000) would have to pay IO.Vd iji the pound on the unimproved value. (4.) WJiother the o pw cont. exemption on the- unimproved value of land used in producing income would cease when the income, produced reached £9OO. (This appeared to be a possible interpretation of the paragraphs in the Budget under the heading •'Progressive Income Tax.") \ Sir Joseph Ward's reply to the points enumerated is as follows: "(It War loan is exempt from all ineome J tnx, including war tax. "(2) Progressive, land tax will not apply to mortgages, a.s iivrerost from mortgages is assessable for income-tax. Progressive land tax will bt> levied on unimproved" value of land onlv. "(3) A company holding * £200,000 mortgages will not be charged land tax on the mortgages, but will b? liable to income-tax on tho interest. "(4) The 5 per cent, deduction is from unimproved value of land, which is used for producing ineonie; and is distinct from ! :ho £3OO exemption, which latter disappears at £900." B