PM Transcripts

HOUSE OF -RE'LRESE-1ITAT IVES
INCOL-2 TAX (] PRTMERSHIPS AND TRUSTS) BILL1 1967
NOTES FOR THE MINISTER'S -SECO17D READING SPEECH.
This Bill will declare the rates of income tax for the
financial year 1967-68 on income of certain superannuation funds,
trust estates and members of partnerships.
These are special rates which have been declared in
relation to the 1965-66 and 1966-67 financial years. Yo change is
proposed for the current financial year. Honourable members will,
no doubt, recall that the special rates are imposed for the purposes
of legislation which, following the Government's consideration of the
report of the Ligertwood Committee on Taxation, was enacted in 1964
with a view to placing a curb~ on tax avoidance practices to which
the Committee drew attention.
A rate of 50 per cent is declared by the Bill for income
of a trust estate, other than a deceased estate, to which no
beneficiary is presently entitled and. which is not taxed as if it
were the income of one individual.
A rate of 50 per cent is also declared for the taxable
income of a superannuation fund that is not exempt from tax. This
rate does not, however, apply to the investment income of a fund that
is subject to tax only because of the fund's failure to comply with
the " 130/ 20" 1 rule concerning investments in public securities. The
rates on this income are proposed by the Income Tax Bill 1967 and also
remain unchanryed from th1ose that applied last year.
As to income from a share in a partnership over which a
person lacks, or is deemed to lack, real and effective control and
disposal, the Bill will impose a rate of further tax sufficient to
bring the aggregate rate on the income up) to 50 per cent. If a
taxpayer's avera-, e personal rate of tax is 50 p~ er cent or more, no
further tax is imposed under this Bill.
I commend the Bill to the House.