THE INCOME-TAX.

Tuapeka Times, Volume XXIV, Issue 1888, 16 April 1892, Page 3

THE INCOME-TAX.

The regulations for the levying and collection of the income-tax have now been gazetted, and — as we predicted at the time that the Bill, which subsequently became an Act, was before the House — they are of an excessively irritating and inquisitorial character. The business of every employer, and, indeed, of every individual, is to be pried into, and should the Taxation Commissioner not be satisfied with any return, he may demand that it shall be amended, and may call upon the person making the return to furnish, for his examination any books or papers that he may deem necessary. Non-compliance with such a demand from his High Mightiness the Commissioner renders the unfortunate culprit liable to a fine of £50. The penalty for failing to make a return at the proper time, or for making a false return, is a fine of from £5 to £100, in addition to treble tax. If a trader have a large amount of what he is convinced are bad debts on his books, and which he would under ordiuary circumstances write off as bad in his annual or quarterly balance-sheet, he must satisfy the Commissioner as to their absolute worthlessness, otherwise he will have to pay tax on them just the same as if he had the mouey in his safe.' All persons refusing to answer questions put to them, or giving evasive answers, are liable to a penalty of £50. As a climax, any person wilfully making a false statement shall be deemed guilty of perjury, and treated accordingly. The tax is, after all, expected — even should the anticipations of its author be realised — to produce only a very small amount of revenue, and in order to get that amount the expense in collection and clerical work will be excessive; whilst the trouble, the vexation, the dissatisfaction which ifc will produce will be enormous. With the inequitable principal on which the tax is levied, and with its unreliableness as a source on which to base the annual estimates of revenue, we have already dealt at length, and we shall not say anything further on those points just now. But if we are not much mistaken, the actual collection if the tax will render it so odious that its life will be a short and by no means a merry one.