A.—2

6

"The Commissioner of Taxes may require such owner or charterer to supply him with any information he may consider necessary to enable him to determine what income of a person or company engaged in business as owner or charterer of shipping is income liable to be assessed for taxation under ' The Land and Income Assessment Act, 1891.' " I am, &c, Edward Wingpibld. The Secretary to the Chamber of Shipping of the United Kingdom.

Chamber of Shipping of the United Kingdom. 1, Whittington Avenue, Leadenhall Street, London, E.C., 10th April, 1897. Sib, — Income-tax in New Zealand. In reply to your letter of the 7th instant hereon I am directed to submit to you the following observations : — (1.) There is nothing in section 2 (2a) to indicate that persons resident in this country who are engaged in shipping are intended to pay income-tax to the colony. (2.) It is submitted that it is ultra vires of a colony to impose a tax in the nature of incometax upon persons resident in the United Kingdom. Shipowners resident in this country pay income-tax upon all profits in voyages from the colonies, such as that of the " Chilena." The claim of the colony therefore is, in fact, to charge income-tax a second time. (3.) The regulations themselves do not authorise a claim of income-tax upon the agents of the ship, but only upon the owner or charterer. The owner being resident in this country, no claim could be made upon him. This supports the view that neither the Act nor the regulations are intended to impose the tax on owners of ships resident in this country. (4.) The regulations charge with income-tax " Income derived from such business," &c. In the case of the " Chilena " it was assumed that the shipowners made a net profit or income of 5 per cent, on the gross freight from the colony Home. As a matter of fact, the shipowner made a heavy loss on the voyage out. How, then, does he become liable under the regulation ? Upon the above grounds, I am directed to respectfully ask that you would communicate with the Government of New Zealand, pointing out that the Commissioners of Taxes in that colony are acting illegally in claiming income-tax from British ships. I have, &c, The Under-Secretary of State for the Colonies. W. H. Cookb, Secretary.

No. 5. (No. 18.) Sib,— Downing Street, 7th May, 1897. I have the honour to inform you that I have had under consideration the resolution adopted at the Conference of Premiers held at Hobart in February last. " (10.) Issue of Her Majesty's fiat in cases provided by local law. " The Premier of Western Australia brought under the notice of the Con- " ference the correspondence respecting petitions of right from the Western " Australian Land Company (Limited), and fr>m Mr. William Wilkinson, to Her " Majesty the Queen. " Besolved, That, in the opinion of this Conference, Her Majesty's fiat " should not issue to supersede the decision of the local Executive on'the sub- " ject to any reference to the Supreme Court of local claims against the " Crown." I shall be obliged if you will communicate to your Ministers the accompanying copy of a despatch which I have addressed to the Governor of Western Australia on the subject. I have, &c, J. CHAMBEELAIN. The Officer Administering the Government of New Zealand.

Enclosure. (No. 19.) • Sib, — Downing Street, 7th May, 1897. I have the honour to acknowledge the receipt of your despatch No. 3, of the 26th February f transmitting further correspondence respecting the petition of right from the West Australian Land Company to Her Majesty the Queen. I had previously forwarded your despatch No. 1, of the 6th January, with its enclosures, and a copy of the Act 31 Vict., No. 7< to the Law Officers of the Crown, and had requested them to favour me with their opinion on the following questions, and with any general observations which they might wish to offer on the points raised in Sir John Forrest's minute:—