The representative. [volume] (St. Paul, Minn.) 1893-1901, 1893-10-18
NEW ztALAND.s INCOME TAX.

l am enabled this week to give the
official text of New Zealand's income
tax act 1t will be noticed that. as
in the case of the land tax, the income
tax is so arranged as to bear almost en-
tirely upon the wealth and not upon
the poverty of the country. Labor is
almost entirely free from tax upon in
comes, as no income less than fifteen
hundred dollars year is taxable, pro-
vided such income is derived from bust
ness or employment. But all stock
companies and banks Except savings
banks) are liable to tax upon the full
amount of their incomes, whether paid
out as dividends, carried to reserve
fund, or credited to undivided profits.
Verify we can learn much from our
antipOdal friends
GEORGE. C. WARD.
Act of Oct IL, 1892.
AN act to impose land tax and an income ia K
Most Gracious Sovereign: We, your maies-
TVS most dutiful and loval subjects the house
OF representatives of New Zealand, in parlia-
ment assembled towards raising the necessary
supplies to defrav your majesty's public ex.
penses, and making addition to the public
revenue, have freely and voluntarily agreed to
give and grant unto your majesty the several
duties hereinafter mentioned and do therefore
most humbly Deseech your majesty that it NAV
be enacted: And be it enacted bv the Queens
most excellent majesty, by and with the advice
ana consent OF the general assembly OF New
Zealand in parliament assembled, and by the
authority of the same as follows:
l. The short title OF this act is 1.-THE land tax
and income tax act. 1884,
For the twelve months commencing IN the
hrst day OF April. one thousand eight hundred
ana ninety two, there shall be charged, levied
collected and paid for the use of her majesty
the several duties of land tax and income tax
hereinafter respectively mentioned that is to
say:
In respect OF income OF companies-Fo- every
pound sterling OF the income of every company,
association, or person chargeable bv or under
schedule OF 1.-The land ara income assess.
ment act 1884, or in accordance with regula-
lions made or hereafter to be made under the
said schedule, and derived or received by such
COMPANY, association, or person in the year
ending on the thir y-first day of March, one
thousand eight hundred and ninety-two, or
otherwise as may be provided by anv such
regulations as aforesaid. a duty b. way Of in
come tax, Of one shilling
In respect OF income of persons-No For
every pound sterling of the income OF anv per-
son derived from business for the wear ending
on the thirty first day Of March, one thousan
eight hundred and ninetytwo and chargeable
under Schedule Of 1.-The land and income as
sessment act 1S9l,' duty, bv way OF income
tax, as follows: 10 to and incl ding one thou
sand pounds, sixpence: exceeding one thousand
pounds. one shilling 60 For every pound
sterling of the incoma of any person derived
from employment or emOlument for the year
ending on the thirty-first day of March one
thousand eight h ndr-d an ninety-two, and
ga N r1n1n Schod ,,to II 81
income assessment act 1884, dut', by way
OF income tax. as follows: Up to and including
one THOUSAND pounds, Sixpence: exceeding one
thousand pounds, one shilling And where auv
person is chargeable with income tax, whether
derived from business or derived from employ
ment or emolument, upon any amount exceed
ing one thousand pounds, he shall be liable to
pay the higher rate of duty herenbefore pro-
vded upon so much of such taxable income on
1y as exceeds the said sum of one Thousand
pounds.
SCHEDULE C-INCOME OF COMPANIES
l. Every company carrying on any business,
adventure, or concern in New Zealand {other
than company wholly or mainly carving 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
anu profits derived or received from such bust
ness IN each year ending on the thirty first day
of March. The income of the company shall
include dividends earned, sums carried to re-
serve fund and any other profits made or in.
come derived during such year as aforesaid
and, in the case of banking companies shall
include income derived or received from mort
cages provided that every person or company
engaged In business as owner or chart erer OF
shipping shall be assessed for taxation upon
It's income on such terms and conditions as
may be prescribed bv regulations and such as
sessment shall be subject TO all rights of objec-
w 6ad
vided, also, that in the case of insurance COM
pan1eS regulations may prescribe means for de.
termln1ng what portion of the income OF such
companies shall be deemed to be the income of
such companies in New Zealand and such in
come only shall be liable TO be assessed for in
come tax under this act
2. In anv case where company has at any
time heretofore borrowed or shall at any time
hereafter borrow money on debentures, such
company shall be deemed to be the agent of
every holder of such debantures, whether such
holder be or be not esident in New Zealand
and such company shall be liable to pay tax
on behalf of every holder of such
debentures, and shall be entitled to deduct in
each year from any instalment of interest pay
able by it upon the amount of such debentures
any tax SO paid, whether coupons for such in
terest have been issued with such debentures
or not. But no such debenture holders shall be
allowed any deduction bv way of exemption
from asses menu provided that where q CON-
pany has borrowed money in the manner here
tote re mentioned upon deben ures, nei her the
COMPANY nor the debenture holder shall be liza
BILE to be assessed for income tax in respect of
so much OF the money SO borrowed as the COM
pany proves to the SD tisfaction of the commits
sloner at the date for making the annual return
OF income, was invested b. such company on
mortgages of land in New Zealand duly regis
tered, and also that such mortgages of land had
been assessed for land tax under schedule A
of this act, and that the then holder
OF any such debenture was residing
beyond New Zealand: and such regulations
shall from time to time be prescribed as may
be necessary to give effect to this provision
Provided. also, that where a company has Dor
rowed or may hereafter borrow money on de-
bentures and the land in New Zealand owned
bv such company is in any way charged as Sc
curitv for the moneys payable under such de-
bentures, the amount so charged shall be
deemed to be mortgage OF land. and may be
deducted in any annual or other return to be
made by the company, and such amount shall
be rel urned by the company as agent for the
debenture holders and the company shall be
liable to be assessed and to paw tax accordingly
on behalf of the holders of such debentures,
but no such debenture holders shall be allowed
any deduction by any exemption Tne interest
accruing due upon debentures SO ded lcted
shall not be assessed as liable to income tax
o nv no ho