XN000022-1982-02-24 — Page 23

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WEDNESDAY, FEBRUARY 24, 1982

FS HOPES TO REVIEW SEPARATE TAXATION FOR WORKING WIVES NEXT YEAR

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THE FINANCIAL SECRETARY, THE HON JOHN BREMRIDGE HOPES TO TAKE ANOTHER LOOK AT THE ISSUE OF SEPARATE TAXATION FOR MARRIED

WOMEN NEXT YEAR AS ON PRAGMATIC GROUNDS, FURTHER TAX CHANGES THIS YEAR ARE NOT POSSIBLE.

HE DESCRIBED THE ISSUE AS CONTENTIOUS AND IT HAD CAUSED HIM SLEEPLESS NIGHTS.

HOWEVER, HE WAS FORTIFIED BY TWO OTHER CONSIDERATIONS. FIRSTLY, THE COST OF REVENUE OF SEPARATE TAXATION FOR MARRIED WOMEN WOULD BE ABOUT $200 MILLION PER ANNUM. IT WOULD NOT BE PRUDENT TO ADD THIS CONSIDERABLE SUM TO THIS YEAR'S TOTAL TAX CUTS, AND IT WOULD THEREFORE BE NECESSARY TO SACRIFICE OTHERS OF HIS PROPOSALS TO MAKE ROOM FOR BENEFITS OF MARRIED WOMEN. +1 DO NOT THINK IT SENSIBLE THAT MY OVERALL RELIEFS SHOULD THUS BE DISTORTED, HE ADDED.

SECONDLY, AND FORTUITOUSLY, THE COMMISSIONER FOR INLAND REVENUE HAD TOLD HIM THAT BECAUSE OF THE CONSIDERABLE CHANGES PROPOSED THIS YEAR AND THE COMPUTER SOFTWEAR PROBLEMS INHERENT IN A SYSTEM OF SEPARATE ASSESSMENT, HIS DEPARTMENT COULD NOT COPE WITH SUCH A CHANGE.

MR BREMRIDGE SAID WITHOUT MAKING ANY PROMISES OR COMMITMENTS AND ABSOLUTELY DEPENDENT ON THE SITUATION AS IT THEN EXISTED, HE HOPED TO BE ABLE TO HAVE ANOTHER LOOK AT THE ISSUE NEXT YEAR WITH A VIEW TO SOME MOVEMENT.

ON OTHER TAXATION MATTERS, HE REFUTED ALLEGATIONS THAT THE PROFITS TAX LEGISLATION ENABLED THE COMMISSIONER OF INLAND REVENUE TO CHARGE CAPITAL GAINS TO TAX. HE SAID THE COMMISSIONER HAD ASSURED HIM THAT HE HAD NEVER DONE SO AND HAD NOT THE SLIGHTEST INTENTION OF TRYING TO DO SO. HE DID CONCEDE THAT THERE WERE OCCASIONS WHEN HE SOUGHT TO TAX AS INCOME WHAT THE TAXPAYER PREFERRED TO THINK OF AS A CAPITAL PROFIT. +BUT THERE ARE REMEDIES THROUGH THE APPEAL PROCESS, IF THE COMMISSIONER'S VIEW IN SUCH A CASE SEEMS INCORRECT.+

MR BREMRIDGE ALSO DESCRIBED AS A MISINTERPRETATION OF THE LAW THAT +EXECUTORS OF DECEASEDS' ESTATES ARE IN SOME JEOPARDY IN THAT THE COMMISSIONER COULD SUCCESSFULLY RECOVER FROM THE PERSONAL ASSETS OF THE EXECUTOR TAXES OWED BY THE DECEASED.+ THE DEPARTMENT DID NOT SEEK TO RECOVER TAXES IN DEFAULT IN THIS WAY, HE ADDED.

HOWEVER, MR BREMRIDGE HAD TAKEN DUE NOTE OF THESE

REPRESENTATIONS AND IF AT SOME CONVENIENT TIME IN THE FUTURE IT WAS THOUGHT THAT ANY OF THEM HAD MERIT, OR THAT THERE WAS INDEED SOME LEGAL DOUBT AS TO THE PROPER INTERPRETATION OF THE EXISTING LEGISLATION, STEPS WOULD BE TAKEN TO PUT MATTERS RIGHT.

HE ALSO NOTED THAT WHILE THERE WERE SEVERAL SOURCES OF INCREASED OR ADDITIONAL REVENUE FAIRLY OPEN, WITH TOBACCO AND ALCOHOL ONLY AMONG THE MORE OBVIOUS, HE DID NOT BELIEVE THAT IT WAS ORDINARILY APPROPRIATE FOR THE GOVERNMENT TO RAISE TAXATION WHEN IT CLEARLY DID NOT NEED THE MONEY EITHER FOR ITS IMMEDIATE EXPENDITURE REQUIREMENTS OR IN ORDER FURTHER TO STRENGTHEN PRUDENT RESERVES.

/WHILE FOR