READY TO TAKE SPORTING CHANCE.

Star (Christchurch), Issue 19154, 21 August 1930, Page 5

READY TO TAKE SPORTING CHANCE.

NO EXTRA IMPOST TO BE MADE ON INCOMES.

(Special to the “ Star.”) WELLINGTON, August 20. “ I stated last night that I would have to consider an increase of a further 1 per cent on income tax, but, after consultation with the Treasury, we feel that we might take a sporting chance and that the 1 per cent proposal might be dropped,” said the Prime Minister (the Hon G. Forbes) in the House cf Representatives to-night. The amendment of the Land and Income Tax Act and the annual taxing measure dealing with land and incomes were introduced by Governor-General's message, and a statement was made that the changes follow exactly the Budget announcements. “Income tax has been left as it was in the Budget,” said the Prime Minister. “That ought to please my friends opposite,” added Mr Forbes, noting hearty laughter from the Reform benches. “It pleases me, too," he continued, “because I did not like adding to those rates. We stay at the 10 per cent announced in the Budget.” “Is it to please us?” asked Mr Coates, but the Prime Minister merely smiled His answer. The Land and Income Tax Amendment Bill repeals, as stated in the , Budget, the supertax on estates exceeding £14,000 unimproved value. It also contains additional provisions faci- ; litating the method of computation of the capital value of mortgages for purposes of exemption by a system of averaging, and defines the extent to which income derived from the use or occupation of land is assessable for income tax in cases where lands used or occupied by the taxpayer are not less than £7500 unimproved value. Nothing in the principal Act shall operate, however, to enable the taxpayer to set off against income tax any losses made in connection with his use of land for agricultural or pastoral purposes. South African war pensions are to be exempt from income tax.. Clause 6 contains a slight amendment of the principal Act, extending the right of the taxpayer in respect to deduction for depreciation of premises. It was explained by the Prime Minister that the rate varied according to the nature of the building. There is also an amendment of section 83 of the. principal Act, w’hich enables losses in regard to business to be set off against profits earned within the following three years. The new provision states. “ Provided also that no relief shall be given under this section in respect of loss incurred in any business if, had any profits been derived therefrom in the year in which such loss was incurred, such profits would not have been assesable for income.” Clause 8 provides that the special exemption allowed in respect of income derived from the use of land is to be based, not on the capital value but the unimproved value, “ provided that if in respect of such land the taxpayer has received for the same year of assessment a special exemption for the purposes of land tax the special exemption to which the taxpayer is entitled under this section shall be computed by reference to the taxable balance of the unimproved value of such land after such special exemption has been allowed, instead of by reference to the total unimproved value thereof.” The Budget provisions with respect to income tax payable by life insurance companies are covered by a long clause in the Bill. x The annual taxing Bill provides for the same rate of land tax as last year, being Id in the £ up to an unimproved value of £IOOO, and increasing thereafter on a graduated scale to a maximum of 7 and 17-20ths of a penny in the £. Income tax rates are unchanged, but in addition to ordinary tax, computed according to the schedule, there shall be added an amount equal to 10 per cent thereof.