The Commissioner of Land Tax has forwarded the following memorandum for advice:

I append for favour of your advice copy of a letter which has been received from Messrs Blake & Riggall, Solicitors, of this City. Will you be so good as to favour me with your opinion as to whether the landowners whom the firm represents have the right to act as they propose, and whether such a course may be guarded against in the contemplated legislation.

It may be pointed out that tax for 1914-1915 is assessed upon values as they stood at 30th June 1914 before the circumstances calling for the increase in tax were existent.

We have been reviewing generally the values at present placed upon the lands owned by a number of our clients.

In view of the proposed increased taxation and other conditions, it is considered that the existing values are too high in many instances.

As the current year's returns have been lodged, we beg to inform you, on behalf of all our clients, that they reserve the right, if thought proper, to amend their returns, by reducing the values shown therein.

Section 15 (1) of the Land Tax Assessment Act requires taxpayers to furnish in each financial year within the prescribed time, a return showing all land owned by them on 30th June then last past, and the improved and unimproved value of the land.

From these returns and any other information at his disposal, the Commissioner makes an assessment, and by sections 20 and 21 he may in certain cases make alterations in and amend the assessments he has made.

Although there is power under the Act for the Commissioner to amend assessments, there is no power given under the Act by which taxpayers can, on their own initiative, amend the returns made by them.

If the taxpayer considers that his return is not correct, he can bring the matter under the notice of the Commissioner, who, if satisfied that the return is incomplete or inaccurate, may amend the assessment under section 20 of the Act.

A taxpayer having made a return for any financial year is, in my opinion, bound by that return for that financial year unless he can prove to the satisfaction of the Commissioner that the return is not correct, when the Commissioner may make the necessary amendments.

[Vol. 13, p. 296]