This Part of this Act shall be read together with and deemed part of the Land and Income Tax Act, 1923 (hereinafter in this Part referred to as the principal Act).

This section applies to New Zealand companies in respect of which the Commissioner is satisfied that their sole or principal source of income is the business of mining in New Zealand for petroleum.

Notwithstanding anything to the contrary in the principal Act, the taxable income derived in any year by any company to which this section applies shall, except as hereinafter provided, be deemed to be the amount of dividends paid to shareholders in that year, but a company shall not be deemed to have derived taxable income in any year unless at the end of that year the aggregate amount of dividends theretofore paid to shareholders exceeds the aggregate amount theretofore expended by the company and deemed by the Commissioner for the purposes of this section to be irrecoverable.

For the purposes of this section the dividends paid to the shareholders of a company shall be deemed to include—

For the purposes of this section the aggregate amount expended by a company and deemed to be irrecoverable shall, on any date, be taken to be the aggregate amount theretofore expended by the company in prospecting or mining in New Zealand for petroleum or for purposes necessarily incidental thereto, reduced by the selling value, as determined by the Commissioner, of assets (not including any petroleum that has not been recovered from the earth) resulting from such aggregate expenditure.

If a company to which this section applies is not exempt from income-tax for any year by virtue of the foregoing provisions of this section, the taxable income of the company for that year shall not exceed the difference between the aggregate amount of the dividends theretofore paid to shareholders of the company and the aggregate amount theretofore expended by the company and deemed to be irrecoverable as aforesaid.

Notwithstanding anything in the foregoing provisions of this section, if any company to which this section applies commences at any time to carry on in New Zealand or elsewhere the business of the refining, distribution, or transportation of petroleum (whether produced by it or not), or any other business not incidental to its business of mining in New Zealand for petroleum, it shall, for the year in which it commences to carry on any such business, be liable to income-tax as if all the receipts theretofore derived by the company, reduced by the sum of the irrecoverable expenditure of the company and the aggregate taxable income of the company in former years, were taxable income of the company.

In lieu of furnishing a return in accordance with the provisions of subsection one of section eight of the principal Act for any year ending on the thirty-first day of March, any taxpayer may, with the consent of the Commissioner, elect to furnish a return for the year ending on the date of the annual balance of his accounts, and in any such case the income derived during that year shall for the purposes of the principal Act be deemed to have been derived during the year ending on the thirty-first day of March nearest to that date. For the purposes of this and the next succeeding section, and of returns heretofore made in accordance with subsection two of section eight of the principal Act, the thirtieth day of September in any year shall be deemed to be nearer to the last preceding thirty-first day of March than to the next succeeding thirty-first day of March.

Any election made by a taxpayer for the purposes of this section shall continue in force unless and until it is altered by the taxpayer with the prior approval in writing of the Commissioner.

Subsection two of section eight of the principal Act is hereby repealed.

In this section—

The expression “the return date” means the last day of the period for which a return is required to be made:

The expression “the original return date” means, in the case of a taxpayer who has elected to change his return date, the return date immediately prior to the new return date:

The expression “the new return date” means, in the case of a taxpayer who has elected to change his return date, the date named by him in his election made in accordance with the last preceding section, or in his last election if he has made more than one change in his return date.

If, in any case to which the last preceding section applies, the new return date is an earlier date than the original return date, the taxpayer shall furnish a return for the period intervening between the original return date and the new return date in the next succeeding year, and if the new return date is a later date than the original return date, the taxpayer shall furnish a return for the period intervening between the original return date and the new return date in the same year. For the purposes of this subsection, one date shall be earlier than another if it is earlier in the calendar year notwithstanding that it may not be earlier in the financial year. Nothing in this subsection shall apply with respect to any taxpayer who, prior to his making an election to furnish a return for a year ending on a date other than the thirty-first day of March, had not derived any assessable income.

All returns of income made in accordance with the last preceding subsection shall be deemed to be returns of income derived during the year ending on the thirty-first day of March nearest to the new return date, and the income derived by the taxpayer during that period shall, for the purposes of assessment, be added to any other income derived for the same year, and he shall be assessed and liable for income-tax accordingly.

If in any case to which this section applies the period intervening between the original return date and the new return date does not include the first day of October next succeeding the original return date, the taxpayer shall, notwithstanding anything to the contrary in section eighty-one of the principal Act, be entitled only:—

Where, for the purposes of this section, a taxpayer is assessed for income-tax on a return made for a period less than a year, he shall be entitled, by way of special exemptions, only to an amount bearing to the total exemptions to which he would be entitled for a full year the same proportion as the number of days in that period bears to the number of days in a year; and where a taxpayer is assessed on a return or returns for a period more than a year, the deduction to which he is entitled by way of special exemptions shall be proportionately increased.

Where, for the purposes of this section, a taxpayer is assessed for income-tax on a return made for a period that is less or greater than a year, the rate of the tax shall be determined as on the taxable income for a year, and for the purposes of this subsection the taxable income of a taxpayer shall be deemed to have been derived at a uniform daily rate throughout the period for which the return has been made.

Where a taxpayer has been assessed for income-tax on a return made to any date other than the thirty-first day of March in any year, the income derived by that taxpayer shall be deemed to have been assessed for tax to that date, and not to the thirty-first day of March nearest to that date.

This section shall be deemed to have come into force on the first day of April, nineteen hundred and thirty-two.

On application for relief made in writing by or on behalf of any taxpayer who (whether before or after the passing of this Act) has become liable for the payment of any additional tax pursuant to the provisions in that behalf of section one hundred and thirty-five of the principal Act, the Commissioner, if having regard to the circumstances of the case he thinks it equitable so to do, may, subject to the provisions of this section, grant relief to the taxpayer—

No amount of tax in excess of twenty-five pounds shall be remitted or refunded under this section except with the approval of the Minister of Finance.

The foregoing provisions of this section shall apply with respect to tax payable for the year of assessment ending on the thirty-first day of March, nineteen hundred and thirty-eight, but shall not apply with respect to tax payable for any former year.

Any refund of tax under this section may be made without further appropriation than this section.

In any case where it is shown to the satisfaction of the Commissioner—

he may, subject to the provisions of this section, release the taxpayer or the executor or administrator of the deceased taxpayer (as the case may be) wholly or in part from his liability, and may make such alterations in the assessment as are necessary for that purpose; and may, if the tax as previously assessed or any part thereof has been already paid, refund any tax paid in excess of the amount of the assessment as altered pursuant to this section.

No amount of tax in excess of twenty-five pounds shall be remitted or refunded under this section except with the approval of the Minister of Finance.

No refund shall be made under this section of any tax that has been paid for any year of assessment prior to the year of assessment ending on the thirty-first day of March, nineteen hundred and thirty-eight.

Any refund of tax under this section may be made without further appropriation than this section.

This section is in substitution for section one hundred and sixty-nine of the principal Act, and that section is hereby accordingly repealed.

For the purpose of determining the liability of the State Advances Corporation to land-tax as the mortgagee in possession of the lands comprised in any mortgage which has been transferred to the Corporation pursuant to Part V of the State Advances Corporation Act, 1934–35, possession by the State Advances Superintendent or other predecessor in title of the Corporation shall not be taken into account for the purposes of the proviso to section sixty-five of the principal Act.

During the financial year ending on the thirty-first day of March, nineteen hundred and thirty-eight, there shall, without further appropriation than this section, be paid out of the Consolidated Fund into the Public Service Superannuation Fund, the Teachers’ Superannuation Fund, and the Government Railways Superannuation Fund respectively such amounts, not exceeding in the aggregate the sum of two hundred thousand pounds, as the Minister of Finance may from time to time direct.

The amounts payable under this section are in addition to any other moneys payable out of the Consolidated Fund into any of the said Funds.

Section twenty-three of the Finance Act, 1936, is hereby repealed.

Notwithstanding anything to the contrary in the Hospitals and Charitable Institutions Act, 1926 (hereinafter in this section referred to as the said Act), the capital value of the rateable property in the Borough of Waihi, as on the thirty-first day of December, nineteen hundred and thirty-seven, and on the corresponding date in each year thereafter, shall, for the purposes of section forty-nine of the said Act, be deemed to be the approximate capital value thereof determined in accordance with the said section or the sum of five hundred and sixty thousand pounds (whichever is the greater).

Notwithstanding anything to the contrary in section forty-nine of the said Act, the Thames Hospital Board in making an apportionment of its estimated expenditure for any year among the contributory local authorities within its district shall first apportion to the Waihi Borough Council (as a special contribution towards the expenditure of the Board) an amount computed in accordance with the next succeeding subsection, and shall apportion the balance among all the contributory local authorities within its district (including the Waihi Borough Council) in accordance with the provisions of the said section.

The amount to be specially apportioned to the Waihi Borough Council in any year pursuant to the last preceding subsection shall be the appropriate percentage (as herein defined) of the gold duty received by the Council during the financial year ended on the last preceding thirty-first day of March, in accordance with the provisions in that behalf of the Gold Duty Act, 1908. For the purposes of this subsection the expression “the appropriate percentage” means, in respect of gold duty received by the said Council—

The provisions of the said Act as to the recovery from and payment of contributions by contributory local authorities shall apply with respect to the special contributions apportioned to the Waihi Borough Council pursuant to this section.

If at any time after the passing of this Act it appears to the Governor-General, on petition by the Thames Hospital Board or by any contributory local authority, that the provisions of this section should be reviewed by reason of material changes in the circumstances of the Board or of any contributory local authority, he may by Order in Council appoint a Commission under the Commissions of Inquiry Act, 1908, consisting of a Magistrate alone or of a Magistrate and two other persons, to inquire and report as to whether, in the opinion of the Commission, the liability of the Waihi Borough Council as a contributory local authority of the Thames Hospital Board should be reduced, and, if so, whether a reduction of its liability should be effected by a reduction of the notional capital value of the rateable property in the borough, or by a reduction of the appropriate percentages specified in subsection three hereof, or by a combination of both such methods.

If a Commission appointed under the last preceding subsection recommends that a reduction should be effected in the liability of the Waihi Borough Council the Governor-General may by Order in Council effect such reduction in the manner and to the extent recommended by the Commission. Such Order in Council shall have effect according to its tenor as if it were enacted in this section, and the foregoing provisions of this section shall thereafter be read subject thereto.

Whereas by the Rangitaiki Land Drainage Act, 1910, and its amendments, the Minister of Lands is empowered to make and levy rates over certain lands within the district constituted by that Act for the repayment of moneys borrowed for the purposes of the said Act, for the payment of interest on such moneys, and for the payment of the expenses of the general administration of that Act: And whereas by section twenty-two of the Finance Act, 1925, the capital sum (as at the date of the passing of that Act) in respect of which rates were leviable as aforesaid was reduced to the sum of two hundred and five thousand pounds: And whereas by section twelve of the Finance Act, 1927 (No. 2), further relief was granted to the ratepayers of the said district by way of the capitalization of certain interest charges and of portion of the rates made and levied for the year ended on the thirty-first day of March, nineteen hundred and twenty-seven: And whereas it is desired to grant further relief to the ratepayers of the said district in accordance with this section: Be it therefore enacted as follows:—

The total amount of the capital sum as at the thirty-first day of March, nineteen hundred and thirty-seven, in respect of which the Minister of Lands may make and levy rates pursuant to section six of the Rangitaiki Land Drainage Act, 1910, is hereby fixed at the sum of two hundred and five thousand pounds, and the said capital sum, together with interest thereon at such rate as the Minister of Finance may determine, shall be recovered by way of a rate levied pursuant to the provisions of the said section. Such rate shall be an annually recurring rate extending over a period of fifty years as from the said thirty-first day of March, nineteen hundred and thirty-seven.

Nothing in this section shall be construed to limit or affect the power of the Minister of Lands to make and levy rates in respect of the expenses of the general administration of the Rangitaiki Land Drainage Act, 1910, and the amendments thereof.

Rates for the year ending on the thirty-first day of March, nineteen hundred and thirty-eight, may be made and levied in accordance with the Rangitaiki Land Drainage Act, 1910, or this section at any time after the passing of this Act (whether before or after the said date).

The relief granted to the ratepayers of the said district by the operation of this section shall not be taken into consideration by an Adjustment Commission in adjusting the liabilities of any ratepayer who has duly applied for an adjustment of his liabilities in accordance with the provisions of the Mortgagors and Lessees Rehabilitation Act, 1936.

Section twelve of the Finance Act, 1927 (No. 2), and section five of the Finance Act (No. 2), 1935, are hereby repealed.

Every person for the time being engaged under New Zealand articles on an intercolonial-trading ship within the meaning of the Shipping and Seamen Act, 1908, shall be deemed to be ordinarily resident in New Zealand for the purposes of the Employment Promotion Act, 1936, unless, in the case of any such person who is not in fact ordinarily resident in New Zealand, he satisfies the Commissioner of Taxes that he is liable for tax of a like nature to employment tax imposed in the country in which he is ordinarily resident.

This section shall come into force on the first day of April, nineteen hundred and thirty-eight.

The grant by the Reserve Bank of New Zealand of accommodation by way of overdraft in aid of the Dairy Industry Account or in aid of the Internal Marketing Account, pursuant to the authority conferred on it by section ten of the Primary Products Marketing Act, 1936, or by section nine of the Primary Products Marketing Amendment Act, 1937, as the case may be, shall not, for the purposes of section fourteen of the Reserve Bank of New Zealand Act, 1933, be deemed to be, or at any time heretofore to have been, the making of unsecured loans or advances.

The New Zealand Dairy Board is hereby authorized to expend out of its funds the sum of two thousand five hundred and seventy pounds in the purchase from the Government Insurance Commissioner of a deferred annuity for the benefit of the person holding office as the Secretary of the Board on the commencement of this Act, such annuity to commence to be payable on the retirement of the Secretary from the service of the Board.

There may, without further appropriation than this section, be paid out of the Dairy Industry Account a sum or sums, not exceeding in the aggregate the sum of five thousand five hundred pounds, to be expended in the purchase from the Government Insurance Commissioner of deferred annuities for the benefit of those persons who, being formerly members of the staff of the New Zealand Dairy Board have, before the passing of this Act, been appointed as officers of the Primary Products Marketing Department.

The payment out of the Consolidated Fund by way of loan of the sum of one thousand pounds, made during the financial year ending the thirty-first day of March, nineteen hundred and thirty-eight, to the National Council of the Young Men’s Christian Association of New Zealand (for the purpose of enabling the said Council to supply radio sets to workmen employed on public works) is hereby validated and declared to have been lawfully made.

The provisions of the Electoral Act, 1927, or any other Act, as to the disqualification of members of the General Assembly shall not apply with respect to the payment of the sum of seventy-five pounds to James O’Brien, Esquire, in respect of his attendance as a delegate to a Conference of the Empire Parliamentary Association held in Sydney in the year nineteen hundred and thirty-eight.