United States. Dept. of Commerce and Labor United States. Bureau of Foreign Commerce.

Consular reports, Issues 196-199 online

. (page 12 of 82)
Online LibraryUnited States. Dept. of Commerce and Labor United States. Bureau of Foreign CommerceConsular reports, Issues 196-199 → online text (page 12 of 82)
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bility to or exemption from tax ; or
(3.) By any falsehood, wilful neglect, fraud, art, or contrivance whatsoever
used or practised, or by or under any instrument made, signed, exe-



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LAND TAXATION AND LABOR LAWS IN NEW ZEALAND. 69

cuted, taken, or received, evades or attempts to evade assessment of

any land, mortgage, or income, whether liable to taxation or not, or

the payment of any tax uftder this Act, —

every such person shall, on proof thereof before any two Justices of the Peace,

be assessed and charged treble the amount of the tax of which such person has

sought to evade the payment, in addition to any tax for which such person

would have been otherwise liable ; and every such person shall also be liable

to a penalty of not less than five pounds nor more than one hundred pounds.

Any person aiding and assisting, in any manner whatsoever, to commit any

offence within the meaning of this section shall, upon conviction, be liable to a

penalty of not less than five pounds nor more than fifty pounds.

The word " person " in this section includes the public officer of a company,
and the agent or trustee of any person or company.

44. (i.) Whenever, upon any information against a principal offender under Procedure to
the last-preceding section, the Justices before whom the same shall be heard '*^^*'^ penalty,
shall hold the matter of the information to be proved, there shall be two con-
victions, the first in the common form, adjudging the defendant to pay the

penalty imposed and such costs as shall be allowed, and the second adjudging
the defendant to pay treble the amount of the tax of which he has sought to
evade the payment.

(2.) Such first conviction shall be forthwith enforceable in the manner
directed by "The Justices of the Peace Act, 1882;" but such second convic-
tion shall not be formally drawn up until the amount of the tax of which the
defendant has sought to evade payment shall have been ascertained by the
Commissioner, who shall proceed to ascertain and fix the same within three
months from the date of the conviction.

(3.) The Commissioner shall give notice to the defendant of the amount
so ascertained, and, if the defendant shall, within fourteen days from the giving
of such notice, object to such amount, he shall be entitled to have such objec-
tion heard in the manner provided by regulations.

(4.) At any time after such amount shall have been ascertained by the
Commissioner or, upon objection, by any authority empowered to determine
the same, the second conviction may be formally drawn up adjudging the de-
fendant to pay treble the amount so ascertained or determined, and shall be
forthwith enforceable in the manner directed by " The Justices of the Peace
Act, 1882."

45. If any person obstructs any officer acting in the discharge of his duty Penalty for ob-
under this Act, or refuses or neglects to answer questions put by any such ^ ''"'^^"**° ""•
officer relating to any land, mortgage, or income belonging to such person, or

as to any deductions claimed or allowed in respect of such land, mortgages,
or income, or any part thereof, or gives any false or evasive answer, he shall,
in any such cases, be guilty of an offence, and on conviction shall be liable to a
penalty not exceeding fifty pounds.

46. If any person, in any declaration made under or authorised by this Act, , False declara-
knowingly and wilfully declares to any matter or thing which is false or untrue, J^^rjiliJ'.* *
every such person so offending shall be deemed guilty of perjury, and liable to

be dealt with accordingly.

47. (i.) All penalties imposed under this Act shall be recoverable only in reTO*vCT^"7naU
a summary way. before any Resident Magistrate or two or more Justices of the ties.

Peace, in the manner prescribed by " The Justices of the Peace Act, 1882,''
upon the information of a person or persons appointed by the Governor either
generally or for the purpose of any particular case ; and when recovered shall
be paid into the Consolidated Fund.



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JO LAND TAXATION AND LABOR LAWS IN NEW ZEALAND.

Not prejudiced (2.) No proceeding for or in respect of any penalty imposed by this Act
by irrcgularily. , ,; . ^ - aa a . a u c • , ., ■

shall be prejudiced or affected by reason of any irregularity in any assessment

made under this Act, or of any informality therein, or in any notice or other

proceeding in relation thereto.

Power to remit (3.) The Governor may, at his discretion, mitigate or stay or compound
or compound for ,. . , . , ,././•

penalties. proceedings for any penalty, and may reward any person who informs of any

offence against this Act or assists in the recovery of any penalty.
be^^*pJ!^ecIIS5 ^' Notwithstanding anything in " The Justices of the Peace Act, 1882," or
within three any other Act, any information or complaint to be heard in a summary way
under that Act, or for the recovery of any penalty under this Act, may be laid
at any time within three years next after the date of the offence committed or
the penalty incurred.
Provisions o f 20. Except where any provision of this Act expresses a diflferent intention,
read as if same then the provisions of this Act shall be deemed to have been in operation when
^^y^****^"The Land and Income Assessment Act, 1891," came into operation and to
have formed part thereof; and, except where the context manifests a different
intention, the expression " this Act," wherever used herein, shall include the
said Act as amended hereby.
The validity of 21. For the purpose of conclusively settling any doubts as to the validity or
and things done regularity of anything heretofore done or that may hereafter be done under the
SfA* prS^ded "id Act it is hereby declared as follows:-

K>r. ^i.) All regulations made under the said Act prior to the passing of this

Act, and all notices given, forms prescribed, times Bxed, acts, things,
and proceedings done or taken by the Commissioner or any Board
of Review, and all returns of land, mortgages, or income, or any of
them, heretofore made or required to be made or purporting to have
been so required, shall be and be deemed to have been valid and
lawfully made, given, prescribed, fixed, done, taken, and required,
as the case may be.
(2.) All assessments of the land, or mortgages, or income of any person or
company respectively heretofore made or purporting to be made or
hereafter to be made in accordance with the said Act or the said reg-
ulations for the triennial or the annual periods commencing on the
first day of April, one thousand eight hundred and ninety-two, upon
such returns or assessments as aforesaid, and all assessment-rolls or
registers made and completed, or hereafter to be made and completed,
in respect of the said periods or either of them, shall respectively be
and be deemed to have been valid so far as the validity thereof de-
pends on compliance with or conformity to the said Act as amended
by this Act or the said regulations hereinl>efore mentioned.
(3.) All statements of values supplied, and all valuation-rolls furnished by the
Commissioner to any local authority or body under *• The Rating Act,
1882," and all rates made or to be made thereon, shall respectively
be deemed to have been and to be lawfully supplied, furnished, and
made, and to have been and to be good and valid in all respects.
(4.) All penalties and obligations incurred or accrued under the said Act,
or any such regulations as aforesaid, prior to the passing of this Act, or
which would have been incurred or have accrued had this Act then
been in force, are hereby declared to be and to have been incurred
and to have accrued and to be enforceable as from the date or time
when the same were incurred or accrued or would have been in-
curred or accrued as effectually as if this Act had t>een in force at
such last-mentioned date or time.



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LAND TAXATION AND LABOR LAWS IN NEW ZEALAND. 7 1



SCHEDULES. Scbeduk.



SCHEDULE A. Schedule A.

(I.) The ordinary Tax on Land,

1. Every person and company being the owner of land shall be liable to Tax to be as-
tax in accordance with this Act, and such tax shall be assessed apd levied upon actual value of
the actual value of such land; but the value of improvements upon all land *"***•

owned by any person or company up to three thousand poundf shall be de-
ducted from such assessed value, and any mortgage then due or owing upon
such land shall also be deducted from such value.

" Actual value" means the capital value for which the fee-simple of land Meaning of

with all improvements (if any) could be purchased for cash :
** Improvements " includes houses and buildings, fencing, planting, drain- Meaning of
ing of land, clearing from timber, scrub, or fern, laying down in grass '^^ p^ r o v e -
or pasture, and any other improvements whatsoever, the benefit of
which is unexhausted at the time of valuation.

2. When the assessed value of the mortgages and all the land of any Deduction of

- _ . , ■ , , , , ;^soo in certain

owner, less the value of improvements thereon up to three thousand pounds, cases.

and the amount due or owing on mortgi^e as aforesaid does not exceed one
thousand five hundred pounds, there shall be deducted by way of exemption a
sum of five hundred pounds, after which the amount of such exemption shall
diminish by one pound for every two pounds that the assessed value of the
property increases, so as to leave no exemption on assessed values of more than
two thousand five hundred pounds :

17. The following amendments are hereby made in the Schedules to the Amendments
e-;^ A,»». '" Schedules to

said Act:— above Act:

(i.) In the first part of Schedule A, —

In section two of the said Schedule the words " the mortgages and "
shall be inserted after the words *' value of* in the first line of such
section.
Provided that only one exemption shall be allowed to an owner of land Proviso.
when such value and the amount due or owing to him on mortgage do not to-
gether exceed two thousand five htmdred pounds, but if the assessed value of
such land and mortgage, less deductions, shall exceed two thousand five hun-
dred pounds then no exemption shall be allowed :

Provided, further, that where the owner of any land or mortgage which Further pro-
does not produce a larger income than [one hundred and twenty] two hun- ^^'*^'
dred pounds per annum shall be incapacitated by age, ill-health, or other causes
from earning further income from business or employment, a further exemption,
which, together with the sum of five hundred pounds hereinbefore mentioned,
shall not exceed two thousand pounds, may be allowed to such owner by the
Commissioner, on his being satisfied that the payment of tax in full would en-
tail hardship on such owner.

I The words ** one hundred and twenty," in the last proviso of section

two of the said Schedule, are hereby repealed, and in lieu thereof the
words "two hundred" are inserted:

3. Every purchaser of Crown land on credit or deferred payments, and the Purchasers of
assignee or transferee of any such purchaser, shall be deemed to be the owner credit liable to
of such land for the purposes of this Act, and shall pay the tax in respect thereof: ^^'

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72 LAND TAXATION AND LABOR LAWS IN NEW ZEALAND.

Provided that every such purchaser may deduct the amount due or payable
to the Crown by way of purchase-money from the assessed value of such land
as if it were a mortgage thereon.
Leaseholds lia- 4. The owner of any leasehold interest in land other than in Part VI. of
bletoiax. ..^j^^ ^a^^ ^^,j^ 1885," shall be liable to taxation under this Act upon the

value of his interest in such land.
Apportionment The deduction of three thousand pounds for improvements shall, as between
tLp^ycmcnJ°^ '^^ owner and the lessee, be made in proportion to the interest of each of them
in such improvements; and such proportion shall be ascertained and determined
both as between the owner and the original lessee, or any sub-lessee, in such
manner as shall be prescribed.
Exempt lands 5. Where any land is wholly exempt from liability to tax, every person or
antstiable^o lax! con^pany being in occupation of such land as tenant, or otherwise using or oc-
cupying the same, shall be liable to tax on the assessed value of the interest
held by such person or company in such land.
Occupiers of [6- Every person being the holder or occupier of any Crown lands for
**u^ ^i '"u^bie"™*"*"^ purposes" within the meaning of "The Mining Act, 1886," shall be
as upon income liable to tax as upon income from business, and not upon the assessed value of
from business, i. • ^ ^ . 1. 1 j n

nis mterest m such land.]

[This provision shall extend to any company being the holder or occupier
of land for the purposes aforesaid.]

Section six of the said Schedule is hereby repealed, and in lieu thereof the
following new section is inserted :

** Every person or company, being the holder or occupier of any Crown
lands for * mining purposes' within the meaning of any Act under which
such lands are held or occupied, shall be liable to tax as upon income de-
rived from business, and not upon the assessed value of the interest in
such land."

(2.) Tkf Tax on Mortgages,

Mortgagees to I. Every person or company other than a banking company being a mort-
gage. °" ™**"" g^^^ ®^ \zxA shall be liable to taxation in respect of every mortgage held by
such mortgagee, and every such mortgage shall be assessed as if it were land,
but at the actual value of such mortgage to the mortgagee ; and, if any differ-
ence shall arise as to such value for the purposes of this Act, the same shall be
decided by the Commissioner in such manner as may be prescribed ; and a
mortgagee shall he entitled to the exemption of five hundred pounds herein-
before provided for, but not further:

(2.) In the second part of Schedule A, —

The following proviso is inserted to stand as the first proviso: —
Provided that so much of the moneys which a building society,
registered under any Act in force relating to building societies, has
received on deposit at interest and invested on mortgage of land in
New Zealand, shall be deducted in any return of such mortgages
made by such society under the said Act: Provided, further, that
all building societies not receiving exemptions on their deposit ac-
counts shall have exemptions on their mortgage accounts up to the
sum of six thousand pounds.
Income-tax on Provided that no company now or hereafter registered in New Zealand un-

loan J building, ^^^ ^^^ ^^ ^f ^^ General Assembly whose sole or principal business is the

and investment ' j r r

companies. business of a loan, building, and investment company, and the head office and

management of which is situated and conducted in New Zealand, shall be lia-



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LAND TAXATION AND LABOR LAWS IN NEW ZEALAND. 73

ble to pay by way of tax on mortgages a sum that shall be greater than an
income-tax of one shilling and sixpence in the pound sterling on the income
from mortgages owned by such company in the year in respect of which such
tax is payable.

2. No mortgagee shall be entitled to exemption from tax by reason only that Mortgagee not
the land included in such mortgage is exempt from taxation. ca»»^ '" cenam

3. No mortgage shall be liable to the graduated tax imposed upon land Mortgagee not
under Schedule B to thU Act. ™du.,id"*i o'^

4. If any owner of land shall be required under this Act to pay tax on 'a"<l-
account of his land which may be subject to any mortgage, such owner may mortrage*^ **" ^
require the mortgagee, not being a banking company, to register such mortgage

in accordance with law ; and if the mortgagee shall for the space of twenty-one
days after being so required neglect to register such mortgage he shall be liable
to such owner for the tax paid on account of such mortgage as if such mort-
gage had been duly registered.

[5. '* Mortgage" means any charge whatsoever upon land, or any interest Meaning of
therein, duly registered or recorded in the manner required by law against or '"<*'*8*Ke-
in respect of such land or interest, and whether created by deed, will, or any
other instrument or in any other manner.]

[** Mortgagee ' ' includes the person or company entitled to a mortgage or any Meaning of
part thereof, and to receive the interest or any part thereof payable in respect ™°'^*8ee-
of any mortgage.]

The definitions of " mortgage " and " mortgagee " herein are hereby repealed, ^, Definition of
and in lieu thereof the following definitions are enacted: — "mortgagee."

« * Mortgage ' includes any charge whatsoever upon land, or any inter-
est therein, registered under any law in force relating to the registra-
tion of title to land, or of deeds, or instruments, and whether created by
deed, will, or any other instrument, or in any other manner.

" * Mortgagee' includes the person or company entitled at law or in
equity to a mortgage or any part thereof.''

The foregoing definitions of the expressions " mortgage " and " mort-
gagee," shall extend to all Parts or Schedules of the said Act as amended
by this Act.
The following additional section is added to the said Schedule: — Land sold on

** 7. Where land is sold on time or deferred payment by any owner payment,
other than the Crown, and money is owing to the vendor in respect of
such land, the amount so owing shall, for the purposes of this Act, be
deemed to be a registered mortgage and shall be stated by the vendor
accordingly in any return made by him under this Act, and the amount
so owing may be deducted by the purchaser as if it were secured to the
vendor upon a registered mortgage.



6CHED17LE B. Schedule B.

7^ Graduated Tax on Land,

In addition to the tax imposed under Schedule A, when the assessed value Persons and
of land, after allowing for all improvements thereon, is of the value mentioned utSc^tcT^gradu-
in the first column of this Schedule, and is less than the amount mentioned in ***** *** °" '*°^*
the second column thereof, every person and company being the owner of such



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74 LAND TAXATION AND LABOR LAWS IN NEW ZEALAND.

land shall be liable to a further graduated annual tax at the rate mentioned in
the third column of this Schedule.



First Column.



Scale of Uxa- Where the value is £s,ooo
tion.

Where the value is ;^io,ooo

Where the value is ;(Jao,ooo

Where the value is jCj<o,ooo

Where the value is ^^40,000

Where the value is ;£so,ooo

Where the value is J^-jofioo

Where the value is ^^90,000
Where the value is £\ 10,000

Where the value is ;^i 30,000

Where the value is ;^i 50,000

Where the value is ;(Ji 70,000

Where the value is ;^ 190,000

Where the value is ;£a 10,000



Second Column.



and is less than ;(Jio,ooo

and is less than ;(Jao,ooo

and is less than ;(j3o.ooo

and is less than ;£40,ooo

and is less than ^^50,000

and is less than ^^70,000

and is less than ;^9o,ooo

and is less than £xiofioo
and is less than ^^130,000

and is less than ;^i5o,ooo

and is less than ;^i 70,000

and is less than ;(Jx90,ooo

and is less than ;^9io,ooo

or exceeds that sum



Third Column:
Rate of Graduated Tax.



one-eighth of a penny in the pound

sterluig.
two-eighths of a penny in the

pound sterling,
three-eighths of a penny in the

pound sterling,
four-eighths of a penny in the

pound sterling,
five-eighths of a penny in the

pound sterling,
six-eighths of a penny in the

pound sterling,
seven-eighths of a penny in the

pound sterling,
one penny in the pound sterling,
one penny and one-eighth of a

penny in the pound stctiing.
one penny and two-eighths of a

penny in the pound sterling,
one penny and three-eighihs of a

penny in the pound sterling.
! one penny and four-eighths cf a
I penny in the pound sterling.
I one penny and five-eighths of a
I penny in the pound sterling.
' one penny and six-eighths of a

penny in the pound sterling.



Tax on absen-
tees' land.



Graduated tax
to be assessed on
value of landless
improvements.

Meaning of
"improvements."



No deduction
in respect of
mortgages.



Provided that, in the case of any person who has been absent from or resi-
dent out of the colony for a period of three years or over that period prior to
the passing of the annual Act imposing the tax, the scale of taxation set forth
in this Schedule shall be increased by twenty per centum in each case where it
is applicable.

And all graduated tax as aforesaid shall be assessed and levied on the
amount of the assessed value of the land less all improvements thereon.

** Improvements" include houses and buildings, fencing, planting, draining
of land, clearing from timber, scrub, or fern, laying down in grass or
l^asture, and any other improvements whatsoever, the benefit of which
is unexhausted at the time of valuation.
No deduction shall be allowed under this Act in respect of any mortgage
from the value of the land upon which such graduated tax is payable in so far
as such graduated tax is concerned.



Schedule C.



SCHEDULE C.



INCOME OP COMPANIKS.

•^bLbl"*™^' *• ^^^*7 connpany carrying on any business, adventure, or concern in New

corae-tax Zealand (other than a company wholly or mainly carrying on the business of

life insurance) shall be liable to the tax on income, which shall be assessed and

paid by such company in respect of the gains and profits derived or received

from such business in each year ending on the thirty-first day of March.



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LAND TAXATION AND LABOR LAWS IN NEW ZEALAND. 75

The income of the company shall include dividends earned, sums carried Meaning of

to reserve fund, and any other profits made or income derived [and not divided

among shareholders or persons entitled to such gains or profits] during such

3rear as aforesaid, and, in the case of banking companies, shall include income

derived or received from mortgages:

(3.) In Schedule C,—

In the second paragraph to section one of the said Schedule the

words " and not divided among shareholders or persons entitled to such

gains and profits " are hereby repealed.

Provided that every person or company engaged in business as owner or , AM«»smcnt of
i_ r » . . 1 11 1^ , /• . . . 1 shipping corn-

charterer of shipping shall be assessed for taxation upon its income on such panies.

terms and conditions as may be prescribed by regulations, and such assessment
shall be subject to all rights of objection and review as provided by this Act :

Provided also that in the case of insurance companies regulations may pre- Assessment of
scribe means for determining what portion of the income of such companies JJJJJ^"** com-
shall be deemed to be the income of such companies in New Zealand, and such
income only shall be liable to be assessed for income-tax under this Act.

In the second proviso to section one of the said Schedule the expression Amendment ot
"insurance companies" shall be construed to include companies carry- ^Swurance^oirw
ing on business as fire, marine, accident, fidelity, or guarantee insurance ponies."
companies, or for any one or more of such objects; and, generally,
every company carrying on business for insurance against loss, risk, or
damage, and not otherwise liable to tax.
2. In any case where a company has at any time heretofore borrowed or Certain compa.
shall at at any time hereafter borrow money on debentures, such company shall "gents of hddcra
be deemed to be the agent of every holder of such debentures, whether such of debentures,
holder be or be not resident in New Zealand, and such company shall be liable
to pay tax accordingly on behalf of every holder of such debentures, and shall
be entitled to deduct in each year from any instalment of interest payable by it
opon the amount of such debentures any tax so paid, whether coupons for such
interest have been issued with such debentures or not. But no such debenture-
holders shall be allowed any deduction by way of exemption from assessment.

To section two of the said Schedule the following provisos are added : — Amendment of

" Provided that where a company has borrowed money in the man- »ec»'on « where a

, . . , . , , , . , , company has

ner herembefore mentioned upon debentures, neither the company nor borrowed money

the debenture-holder shall be liable to be assessed for income-tax in re- °" <»«o«niu«s.

spect of so much of the money so borrowed as the company proves, to



Online LibraryUnited States. Dept. of Commerce and Labor United States. Bureau of Foreign CommerceConsular reports, Issues 196-199 → online text (page 12 of 82)