TAXATION QUESTION.

Waipa Post, Volume XXI, Issue 1280, 12 August 1922, Page 6

TAXATION QUESTION.

SPECIAL COMMITTEE'S REPORT.

UNANIMOUS RECOMMENDATIONS. The report of the Taxation Committee, placed before the House, is a lengthy and rather involved document and includes majority and minority statements! on some of the more important points. Taxation of Companies.

A majority has favoured the taxation of shareholders in companies on their dividends, and the taxation of companies on their undivided profits only, the change to be made as soon as the finances of the country will permit. The minority favours the taxation of companies direct. Taxes on Income.

The majority favours the abandonment of the present distinction between earned and unearned income. The minority favourel the present system. All the members of the committee but one favour the present exemption of £3OO in the assessment of income tax. The 'dissenting member suggests that the exemption be reduced to £2OO in the case of unmarried persons.

Unanimous Recommendation. The committee has made unani mous recommendations in regard to the following points) among others: — That 'as a first step towards the reduction of taxation it is imperative that further substantial economies in administration should take place, and that the public expenditure of the Dominion should be further reduced. That in order to stimulate production, and lesson unemployment, the •scale of income tax should be .immediately revised to provide for a maximum rate not exceeding 5s in the .pound.

That a system permitting the carrying forward of losses/ should be permitted. That losses made in one or more directions should be allowed as 'a deduction from profits in other directions.

That, all Government and public body trading undertakings should be subject to land and income taxes. That /carleful inquiry shoaild he made as to the sales and turnover taxes in other countries, with a view to ascertaining whether it is desirable to adopt either of them in the Dominion, but only (as a, relief to present taxation.

That the super-tax on land, which was levied as 1 a war measure, should be Abolished as from April 1, 1922. That discretion be given to,, the Commissioner to remit the whole or /part of the land tax in cases of rural land, which, though worked in a proper and workmanlike m'anner, has not produced sufficient to pay such tax in whole or in part. That all lands owned by local bodies, and leased for revenue purposes', shall be subject to land tax on -the same basis as privately owned. That in order to stimulate production and .induce industry, land tax should be levied at a flat, instead of a graduated, rate, with deductions on the smaller holdings.