LAND INCOME TAX.

Waipa Post, Volume XXIV, Issue 1414, 11 October 1923, Page 5

LAND INCOME TAX.

ASSETS AND INCIDENCE. WELLINGTON. Wednesday. Mr J. A. Lee (Auckland East) during the recent session asked the Prime Minister whether for purposes of assessing the 30s per cent, income tax on banks the statement of the value of landed assets as made to the House is used, or is the land valued for income tax purposes according to the value shown in the Land Tax return, and if he is aware that the statement in a 1923 Gazette values the landed property of t r.-.,-- ,** New Zealand at £206,000. while the manager of the bank in answer to a question addressed to him by a director in 1921, according to the annual report, declared the landed assets of the bank to be worth £966.261. and the value as assessed for land tax £953.021. It was suggested by Mr Lee that since banks pay income tax according to average assets and liabilities they arc avoiding taxation by writing down the assets. The Hon. Downie Stewart, tor the Minister of Finance, replied that under the provisions of the Land and Income Tax'Act, 1016, the Department is bound to take the figures published in the Gazette. The Department, however, points out that increase in the basis of assessments in 1912 from 10s to 15s, and again in 1916 from 15s to the .present rate of 30s fully compensated for any writing down of assets.