Tax To Be Challenged

Territorians Resent an Australian Impost

STEPS are being taken to challenge, on the highest level, the decision of the Australian Commissioner of Taxa tion that Territorians must pay Income Tax on War Damage Compensation in- In very many cases, some time elapsed between the allocation of compensation and actual receipt of the money by the owner. The WD Commission paid interest on the sum during that period. Because the Fund was held in Australia, and in terest was paid there, the Tax Commis sioner demands a share of it.

Territorians point out that compensa tion took the place of their properties (which normally earned them a non taxable income in Papua-New Guinea); that in most cases the compensation was reinvested in the Territories as soon as it was available; and that, pending re investment, they were entitled to regard its earnings (interest) as non-taxable income.

Some resentful Territorians appealed to Mr. Spender (Minister for Territories) and he in turn appealed to the Australian Treasurer (Mr. Fadden). Mr. Fadden has replied that, although he took the matter up with the Taxation Commissioner, the latter still insists that the payments are taxable; and he (Mr, Fadden) has now no power to. intervene. He suggests that persons concerned should appeal direct to a Taxation Appeals Board.

It is considered that the case calls for the strongest possible action—probably an appeal both to the Australian Cabinet, and the Australian Courts. Persons who are prepared to join in such a protest are invited to get in touch with any one of the following, with a view to arranging a general meeting to appoint a com mittee to raise funds and take action without delay— Mr. R. A. Laws, Robert Gillespie Pty., Ltd., 54a Pitt Street, Sydney (BW 4782).

Mr. Norman Nelson, Nelson & Robert son Ltd., 12 Spring Street, Sydney (BU 5461).

Mr. R. W. Robson, Pacific Publications Pty., Ltd., 247 George Street, Sydney (BW 5037).