Land and Income Tax Annual Act 1972
Archived legislative commentary on the Land and Income Tax Annual Act 1972 from PIB vol 69 Sep 1972.
This commentary item was published in Public Information Bulletin Volume 69, September 1972
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This Act fixes the rates of land tax, income tax, excess retention tax and bonus issue tax for the year of assessment which began on 1 April 1972.
Income Tax - Individuals
The rates to apply to income derived in the 1972/73 income year are those set out in Part D of the First Schedule to the principal Act. A general rebate of 7 1/2 percent of the tax calculated according to that basic scale is to be allowed.
Income Tax - Companies
The rates to apply to income derived in the 1972/73 income year are those set out in Part-B (resident companies) and Part C (non-resident companies) of the First Schedule to the principal Act. Note that new Parts B and C are substituted by section 38 of the Land and Income Tax Amendment Act (No 2) 1972 - see notes in this bulletin on section 38 of that Act.
Land Tax - All Taxpayers
The basic rates of land tax for all classes of taxpayers are the same as those in force for last year. These are -
| On so much of the unimproved value on which land tax is payable as - | Rate of tax for every $1 | ||
|---|---|---|---|
| Does not exceed | $20,000 | ... ... ... | 5/12 c |
| Exceeds | $20,000 | but does not exceed $30,000 | 5/6 c |
| Exceeds | $30,000 | but does not exceed $40,000 | 1 1/4c |
| Exceeds | $40,000 | ... ... ... | 1 2/3c |
A rebate of 50% is allowed on tax assessed at these rates.
Excess Retention Tax
The rate of excess retention tax remains the same at 35c in the $ on the amount of the insufficient distribution.
Bonus Issue Tax
The rate of bonus issue tax remains the same at 17.5c in the $ on the amount of the bonus issue.
Note that under section 34 of the Land and Income Tax Amendment Act (No 2) 1972 - explained earlier in this bulletin - the rate so fixed will also apply to bonus issues made on or after 1 April 1973 and before the passing of the Annual Act for 1973.
Terminating Dates
| Section of Act | General Description | Terminating Date |
|---|---|---|
| 114A (1) | Special depreciation on plant, machinery, and employee accommodation | 31 March 1974 |
| 114A (1A) | Special depreciation on farm buildings | 31 March 1974 |
| 114A (1B) | Special depreciation on private bathroom facilities in hotels | 31 March 1974 |
| 114A (1BB) | Special depreciation on export meat storage buildings (operator-owned) | 31 March 1976 |
| 114A (1BC) | Special depreciation on export meat storage buildings (lessor-owned) | 31 March 1976 |
| 114B | Additional depreciation on export meat hygiene improvements | 31 March 1976 |
| 114C | Additional depreciation on export fish hygiene improvements | 31 March 1976 |
| 114D | Special depreciation on new tourist hotels | 31 March 1976 |
| 117A | Investment allowance on plant and machinery | 31 March 1974 |
| 117C | Investment allowance on West Coast redevelopment projects | 31 March 1974 |
| 119D | Development expenditure on farming or agricultural land | 31 March 1974 |
| 119G | Development expenditure on rock oyster or mussel farms | 31 March 1974 |
| 129A | Export market development and tourist promotion expenditure | 31 March 1976 |
| 129AA | Export market development by self-employed persons | 31 March 1976 |
| 129B | Increased exports | 31 March 1978 |