Gates &
25/1/47
DRAFT TELEGRAM
GOVERNOR,
Code of Tram
26 JAN 1947 28/
hopps.
Al Super E
TY.
- 7. Gilbert B.! Ro
B! Rem you.
emenne
4 libphon Podar.
54301/47
boded a sent
No. 165 boded
Your telegram No. 1651.
1515
26-147
Revision of War Revenue Ordinance.
You will wish to know that draft Income
13
Tax Ordinance which Padney is taking beok with
him after consultation with Board of Indland
Revenue has my general approval in principle.
Pudney will fully explain ways in which draft
Ordinance differs from 1941 Ordinance,
Principal advantage over 1941 Ordinance is
that it permits institution of a standard rate
and gives encouragement to taxpayers to seek
personal assessment on basis of whole income.
2. Question of rates of tax was not
discussed in detail with Fudney except in
general terus. I wish, however, to emphasise
the importance I attach to putting the
standard rate at as high a level as you
consider practicable. In this connection
Ordinance as drafted by Pudney will not permit
the imposition of a surtax on higher incomes
and this is an additional reason for making
the standard rate as high as possible with
individuals in lower income groups being
given larger allowances where personal
assessment basis is chosen. I shall be glad
to learn in due course what rates you actually
propose.
3. I would also emphasise that I consider
Ordinance as prepared by Pudney to be suitable
only as an interim measure pending the
introduction of a normal Income Tax.
4. Consider that introduction of increased
taxation should not be deferred beyond
1st April