G I U G N O 1960 Pubblicazione trimestrale Anno X IX - N. 2 Spedizione in abbonamento postale - Gruppo IV
RIVISTA DI DIRITTO FINANZIARIO
E S C I E N Z A DE L L E F I N A N Z E
Fondata da BENVENUTO GRIZIOTTI
(e
RIVISTA ITALIANA DI DIRITTO FINANZIARIO)
D I R E Z I O N E :
L U I G I E I N A U D I ACHILLE D. G IA N N IN I
D E L L ' U N I V E R S I T À D I T O R I N O D E L L ' U N I V E R S I T À D I B A R I
GIAN ANTONIO MICHELI S A L V A T O R E S C O C A
La Redazione è a Pavia, Istituto (li Finanza presso l ’Università e la Camera di Commercio, Strada Nuova n. 65. Ad essa devono essere inviati manoscritti, bozze corrette, cambi, libri per recensione in duplice copia etc. Redattore
Capo, prof. Francesco Forte.
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INDICE-SOMMARIO
P A R T E P R I M A
DOTTRINA
Pag.
Pa u l Streeten - Tax Policy for in v e s t m e n t... 117
Ignazio Manzoni - Il regime tributano del registro nelle divisioni di beni comuni provenienti da titoli d i v e r s i... 138
R u olo De Anoelis - Il fallimento del de cuius e le imposte di successione 170 Fil ip p o Gazzerro - La dichiarazione unica dei r e d d i t i...178
RASSEGNE Renato Ricci - Rassegna dei lavori parlamentari in materia finanziaria nel primo trimestre 1960 ... 184
RECENSIONI Giannino Parravictni - La politica fiscale e le entrate effettive del Regno d’Italia 1860-1890 (G . M a z z o c c h i ) ...209
Giovanni Ravagli - L’ accertamento del valore imponibile nei trasferimenti della ricchezza (B . C o c i v e r a ) ...211
Franco Brioola - Dolns in re ipsa (A . D u s ) ... 212
ALTRE OPERE R I C E V U T E... 214
RASSEGNA DI PUBBLICAZIONI R E C E N T I... 217
P A R T E S E C O N D A Gian Antonio Mich eli - Ancora in tema di giudizio di rinvio avanti le Commissioni t r i b u t a r i e... 81
Armando Giorgeth - Del fenomeno della vischiosità nell'erogazione della spesa p u b b lic a... ... Giovanni Ravagli - Determinazione del valore imponibile nelle compra-vendite di beni soggetti al diritto di prelazione da parte dello Stato 100 Giu se ppe Greco - Presupposti del diritto a surroga ex art. 98 legge di registro con riferimento ai procuratori g i u d i z i a l i... 103
pag. Giudizio di rinvio avanti la Commissione provinciale - Obbligo rispetto
principi di diritto fissati dalla Commissione centrale - Deroga . . 81 Giudizio di rinvio avanti la Commissione provinciale - Limite delle con
testazioni (Comm. Centr., 18 marzo 1959, n. 14832) (con nota di G. A. Micheli) ... ... Pubblica amministrazione - Mora della pubblica amministrazione - In
sussistenza della mora sino all’espletamento dei controlli prescritti dalla legge sulla contabilità di S t a t o ...89 Pubblica amministrazione - Mora della pubblica amministrazione - Co
stituzione in mora - Art. 1219 n. 3 c.c. - Inapplicabilità (Cass., 25 feb braio 1959, n. 532) (con nota di A. Giorgetti) ... 89 Registro - Vendite soggette al diritto di prelazione da parte dello Stato
- Giudizio di valutazione - Ammissibilità (Comm. Centr., 30 gennaio 1959, n. 12624) (con nota di G. Bavagli) . . . ioo Imposte di registro - Ingiunzione fiscale - Pagamento spontaneo e per
sonale dell’imposta eseguito dal procuratore legale di una delle parti in causa - Surrogazione ex art. 98 legge di registro - Inammissibilità
(Cass., 29 febbraio 1960, n. 363) (con nota di G. Greco) . . . . 105 Imposta generale sull’entrata - Rilascio,di cambiali prò solvendo - Mezzo
di pagamento sostitutivo del denaro - Non è tale - Indicazione sulla fattura di prezzo inferiore a quello pattuito ed omesso pagamento dell’I.G.E. sulla differenza non indicata per cui siano state rilasciate cambiali (Cass., 25 marzo 1953, n. 604) (con nota di P. Cesareo) . . 114
NOTE A SENTENZE E DECISIONI ANNOTATE
— I li
INDICE PER MATERIA
AVVERTENZA. — I singoli tributi sono collocati in ordine alfabetico, se condo la loro denominazione specifica (per es. Imposta di Ricchezza Mobile, si cerchi sotto Ricchezza Mobile (Imposta di). Tassa sulle insegne sotto Insegne
(Tassa sulle), eoe.). I numeri sono quelli delle massime di Massimario, ad ec
cezione di quelli in corsivo che rinviano alla prima pagina delle sentenze e decisioni annotate.
Autorità amministrativa
Annullabilità decisione di revoca per inosservanza solve et repete, 7. Atti interruttivi della prescrizione,
122.
Avviso di accertamento - Natura giuridica, 118.
Avviso di accertamento in caso di trasferimento di azienda - Conte nuto, 161.
Azione della Finanza - Prescrizio ne, 49, 115.
Bollo a calendario impresso sul reclamo, 116.
Competenza delle Commissioni, 117. Competenza di Comm. tributaria in
sede di valutazione, 169. Conciliazione amministrativa, 12 Concordato fiscale, 6, 102.
Controversie di semplice estimazio ne, 120.
Controversie tributarie - Nozione, 119.
Decisioni Comm. prov., 22.
Denuncia rettificata d ’ufficio o da commissione competente, 100. Inammissibilità invito alTUfficio di
procedere a nuovo accertamento, 117.
Incompetenza Commissioni ammini strative determinazione valore ti toli e quote partecipazione soc. in nome collettivo, 39.
Mancata notificazione decisioni Comm. Distrettuale, 21.
Motivi nullità concordato, 6, 102, 133.
Negazione potere d ’imposizione, 20. Notifica avviso discussione di ricor
so, 121.
Notifica avviso accertamento, 4, 110,
111, 122.
Notifica avviso comparizione presso domicilio eletto, 160.
Nullità rettifica d’ufficio e decisioni Comm. amministrative per omes sa motivazione, 5, 11, 113. Opposizione ingiunzione fiscale, 23.
97. 127.
Procedimento amministrativo di ac certamento - Natura giuridica, 118.
Procedimento avanti Comm. Cen trale, 15.
Pronuncia di Comm. tributaria. Pre clusione, 86.
Pronuncia di Comm. Prov. su con trappello del contribuente, 7. Richiesta orale classificazione red
dito a Comm. Distr., 8.
Ricorso alla Comm. Centr., 10, 11. Ricorso al Ministero Finanze, 19. Ricorso straordinario al Presidente
della Repubblica, 4, 9.
Solidarietà del terzo possessore im mobile oggetto di privilegio, 115. Trasferimenti ricchezza - Determi
nazione valore, 114.
Vizi di legittimità del processo tri butario di accertamento, 118, 120, 123.
Autorità giudiziaria
Azione avanti l’autorità giudiziaria - Limiti di competenza, 10, 120. Azione giudiziaria anteriore alla
definizione amministrativa, 156. Azione giudiziaria previo esauri
mento fase amministrativa, 100. Competenza del giudice - Pregiudi-
zlalità, 21.
Condanna P.A. alle spese, 13. Fascicolo d’ufficio - Trasmissione,
IV —
Ingiunzione fiscale seguita da im mediata azione giudiziaria, 13. •Tus superveniens, 17.
Legittimazione ad agire appaltato re servizio riscossione ìmp. con sumo, 126.
Notifica - Invalidità ed omissione, 21.
Passaggio in giudicato, 21. . Poteri del giudice, 18.
Rappresentanza in giudizio. 17. Regolamento di giurisdizione, 119. Ricorso all’A.G.O., 22.
Ricorso incidentale - Proponibilità, 30.
Ricorso per Cassazione, 17. Trasferimenti di ricchezze - Deter
minazione valore, 114. Bollo (imposta di)
Controversie connesse alla produ zione e al commercio dello zolfo, 155.
Quietanze dei salari rilasciate da operai miniere zolfo, 155.
Complementare (imposta) Accertamento induttivo, 135. Accertamento induttivo redditi di
natura fondiaria, 15, 133. Concordato inficiato da errore di
diritto, 133.
Determinazione reddito in base ad accertamento di imp. di famiglia. 134, 135.
Consumo (imposta di)
Acque minerali con qualità medica mentose, 98.
Appalto riscossione a ente di diritto pubblico, 97.
Assunzione gestione da parte del Comune, 194.
Bolletta di accompagnamento e boli, di pagamento, 88.
Casseforti destinate a banche - Esenzione, 96.
Cella frigorifera, 95.
Consorzio autonomo porto di Ge nova, 195.
Contravvenzione per atti di natura dolosa, 129.
Delitto di evasione fraudolenta. 129.
Esenzione, 92, 93, 94, 96, 97, 195.
Prode all’imposta di consumo, 88, 129.
Generi non previsti da tariffa, 99. Introduzione generi solo parzial mente coperti da bolletta di ac compagnamento, 89.
Legittimazione ad agire dell’appal tatore, 126.
Materiali da costruzione, 92. 93 . 94, 97, 195.
Materiali pavimentazioni stradali, 91.
Nozione di mobili, 129. Opificio industriale, 95.
Passaggio generi da esercizio abbo nato ad altro esercizio non abbo nato, 90.
Procedimento di oblazione in via or dinaria, 106.
Restituzione del tributo, 97. Sequestro della merce, 129.
Verbale accertamento - Compilazio ne tardiva - Omessa notifica, 89, 129.
Contrabbando
Detenzione di tabacchi esteri, 192. Omissione denuncia deposito di spi
riti, 189.
Reato di contrabbando - Nozione, 190.
Successione di leggi per repressione spaccio alcool di contrabbando, 189.
Diritto penale
Aggravamento pena per la ..prove nienza estera del tabacco, 132. Amnistia - D.P. 11 settembre 1959
n. 460, 131.
Condizioni amnistia per evasione I.G.E., 131.
' Contestazione penalità per omissio ne cespiti concordato imposta sul patrimonio, 38.
Destinazione olio minerale a lavori costruzione fabbricato rurale - Sussistenza reato, 25.
Evasione imp. consumo - Natura delittuosa o contravvenzionale, 129.
Evasione imp. consumo - Notifica zione verbale accertamento, 129. Evasione imp. consumo - Sequestro
merce, 129.
V
Giudizio di prevalenza ed equiva lenza, 132.
Mancata audizione Cons. Stato, 26. Motivi di improcedibilità azione pe
nale, 89, 129.
Reati finanziari - Competenza per territorio e luogo di accertamen to, 24.
Responsabilità del titolare di per sona giuridica e dell’autista per introduzione irregolare di merci nel comune, 89.
Spiriti, 26. Dogana
Detenzione di merci estere non iscritte a manifesto - Contravven zione, 190.
Esenzione doganale, 79.
Esenzione doganale per trattrici adibite a lavoro agricolo, 191. Introduzione abusiva di autovettu
re, 79.
Perdita merci depositate in magaz zino generale privato ad opera di esercito invasore, 193.
Perdita di merci depositate in ma gazzini privati - Esclusione di scarico diritti doganali, 193. Qualificazione di merci - Determi
nazione del Ministero, 18. Entrata (imposta generale sulla)
Bestiami e carni, 74, 182. Bestiame macellato, 184. Commissionario vendite, 183. Contrabbando, 185.
Contratto verbale, 186.
Determinazione del tributo, 184. Diritto a rimborso, 182.
Evasione, 131.
Legittimazione ad agire, 182. Locazione azienda, 130.
Merci importate dall’estero, 185. Medici convenzionati da enti pre
videnziali, 76.
Pene pecuniarie per evasione, 130. Ricorso al Ministero delle Finanze
19. Rivalsa, 76.
Solve et repete, 78.
Vendita merce, 77.
Vendite eseguite da commissionari o intermediari, 75.
Fabbricati (imposta sui) Casa canonica, 42.
Costruzione esente per 25 anni, 152. Esenzioni, 42, 152.
Nullità dell’accertamento, 152. Reddito risultante dal contratto di
affitto, 43.
Fabbricazione (imposta di)
Circolazione olii di semi senza bol letta di legittimazione, 107. Depositi olii minerali - Obbligo di
denuncia, 188.
Grassi animali e vegetali, 80. Lavori su fabbricato rurale, 25. Olii minerali per uso agricolo, 25. Spiriti - D.M. 8 luglio 1924, 26. Famiglia (imposta di)
Denuncia per 1 anno non seguita da rettifiche, 100.
Dimora abituale, 86, 197.
Esecuzione contro eredi componenti nucleo familiare, 101.
Iscrizione anagrafica, 86.
Pagamento al comune di residenza, 197.
Premi di assicurazione sulla vita, 196.
Rinuncia all’eredità, 101.
Tempo in cui va determinata la re sidenza, 197.
Ipotecaria (imposta) Case non di lusso, 52.
Consenso per estensione ipoteca ad altri beni, 45.
Enti economici dell’agricoltura - Vendita terreni, 168.
Imposta di trascrizione - Tassazio ne delle pertinenze, 73.
Nuda proprietà e usufrutto, 52. Negoziazione (imposta di)
Accertamento valore titoli azionari - Natura, 123.
Comitato direttivo agenti di cambio, 123.
Decisioni delia Commissione Pro vinciale, 22.
VI — ■
Ricorso all’A.G.O. - Limiti, 22. Termine prescrizionale per l ’accer
tamento, 123.
Patrimonio (imposta straord. progr. sul)
Decisione di I grado, 21.
Collezioni artistiche - Esenzione, 41.
Concordato fiscale, (ì.
Contestazione per applicazione pe nalità - Mancata notificazione nei <10 gg., 21.
Omissione cespiti in caso di con cordato, 38.
Passaggio in giudicato, 21. Procedimento, G.
Questioni attinenti all’invalidità della notifica, 21.
Ricorso alla centrale, 11.
Valore azienda al netto di ogni pas sività, 6.
Valutaziine azienda in cifra infe riore al valore stabilito per la pa- trim. ord., 11.
Patrimonio (imposta prop. sul) Comitato direttivo Agenti di cam
bio, 3».
Società cooperativa - Requisiti per fruire di esenzione, 40.
Valutazione quote di partecipazione società in nome collettivo, 39. Profitti di contingenza
Accertamento induttivo, 120. Importazione merci dall’estero, 133. Tassazione in solido - Presuppo
sti. 44. Profitti di guerra Indennità di requisizione, 154. Requisizione di veliero, 154. Registro Accessione, 158.
Acquisto terreno per casa non di lusso, 51.
Acquisto aree fabbricabili contigue, 53.
Acquisto aree fabbricati distrutti da guerra, 56.
Agevolazioni fiscali - Presupposti, 64, 67, 68, 156, 175.
Affitto di cava, 62. Appalto, 164.
Appalto a prezzo presunto, 164. Appalto del Genio civile, 61. Appalto da parte del Comune per
costruzione strada, 59.
Appalto per demolizione e sgom bero macerie, 171.
Assegni circolari, 3. Atti di società coop., 156. Atti interrottivi della prescrizione,
122.
Atti soggetti a condiz. sospensiva, 170.
Atti traslativi del diritto di escava re, 62.
Aumento di capitale, 66, 173. Case non di lusso, 52. Cassa del Mezzogiorno, 68. Cessione azienda agricola, 48. Cessione presunta di azienda, 169. Cessione crediti verso enti pubblici,
58.
Cessione azioni società anonima, 57. Cessione quote di partec. società a
r.l., 60.
Collazione beni alla massa eredi taria, 54.
Compravendita immobili, 7. Concentrazione di aziende sociali,
64.
Concessione di pubblici servizi, 49. Concessione di uso di beni dema
niali. 159, 162.
Contratto annullato per vizio di consenso, 16.
Contratto ad economia e a cottimo, 61.
Contratto verbale di trasporto, 69. Corrispondenza commerciale, 172. Corse cavalli, 55.
Costituzione di privilegi contestuale della vendita, 163.
Costruzione accessi a distributore di benzina, 162.
Costruzione su complesso di aree. 53.
Costruzione su terreno altrui, 158. Disciplinare di concessione ammini strativa, 159.
Divisione di più comunioni. 167. Divisione ereditaria, 50.
Donazione tra coniugi, 13. Emissione assegni bancari liberi, 47. Enti economici dell’agricoltura -
Vendita terreni, 168.
Esenzioni e agevolazioni. Credito cinematografico, 63.
VII
---Esenzione per appalti stipulati con l’U.N.R.R.A., 166.
Immobili danneggiati da guerra, 67. Impossibilità ricostruzione, 56. Imposte complementari e suppleti-
tive, 156, 157. Ingiunzione fiscale, 13. Noleggio navi, 69.
Nuda proprietà e usufrutto, 52. Nullità patto di non registrazione,
174.
Opere di bonifica idraulica e siste mazione montana, 175.
Registrazione in caso d’uso, 172. Retrocessione, 57, 160.
Risoluz. per inadempimento, 57. Sottoscrizione duplice di cambiale.
165.
Sovrapprezzo azioni, 66.
Tacitazione di usufrutto con beni di piena proprietà, 50.
Totalizzatore, 55. Transazione, 160.
Trasferimento di azienda, 161. Trasferimento mobili e immobili,
65.
Vendita di due immobili con unica scrittura, 14.
Vendita fondo con costruzione pree sistente, 46.
Vincolo verde privato, 51. Ricchezza mobile (imposta di)
Accertamento induttivo, 5, 144. Avanzi di gestione, 28, 32. Avviamento, 140, 143, 150.
Bar annesso a stabilimento ter male, 145.
Compravendita di immobile, 27. Compensi ai soci per prestazioni di
lavoro, 35.
Consorzio produttori latte, 32. Costruzione case economiche, 146. Esenzione a favore di opifici indu
striali, 30, 139, 145.
Esercizio di autolinee urbane, 139. Gestione di mercati ittici, 29. Locazione di complesso industriale,
34.
Mancato realizzo del credito, 149. Mercato ittico comunale, 28. Molitura delle olive, 141. Nullità decisione non motivata, 5. Opificio tecnicamente organizzato,
30, 139.
Perdita del contribuente per furto di merce, 31.
Periodo di paga, 136. Premi di giochi televisivi, 33.
Presunzione di interessi, 147, 148, 149.
Prodotti orticoli sotto terra, 137. Reddito agrario, 36, 137. Redditi ant¡eretici, 148. Rinunzia di crediti, 151.
Sindacabilità - Accertamento indut tivo, 144.
Società di armamento, 138. Sopravvenienza attiva, 151.
Sottoscrizione apocrifa del ricor so, 5.
Trasformazione del risone in riso, 142.
Trasformazione di società a r.l., 150.
Trasformazione latte, 36.
U.N.U.C.I. - Utili da rilascio tes sere, 37.
Riscossione
Appalto per riscossione a ente di diritto pubblico, 97.
Applicabilità solve et repete, 78, 119, 125.
Concordato fiscale, 6, 102.
Enti di riforma fondiaria - Solve et
repete, 119.
Esazione imposte ed esattore, 23. Esecuzione contro eredi componenti
nucleo familiare, 101.
Esecuzione esattoriale contro con tribuente fallito, 128.
Esecuzione imposte indirette in ge nere, 19.
Esecuzione mobiliare, 109.
Esigibilità del debito di imposta, 115.
Imposte complementari e suppleti ve - Solve et repete, 157.
Ingiunzione fiscale - Copia auten ticata dal procuratore del Regi stro, 122.
Ingiunzione fiscale - Natura giuri dica, 19, 127.
Inosservanza obbligo solve et re-
peto, 7.
Opposizione ad ingiunzione fiscale, 23 , 97, 127.
Pagamento ad opera del procurato re della parte, 124.
Riscossione tasse comunali, 23. Vidimazione ingiunzione fiscale, 19.
122, 127. Successione
V i l i
---Cassette di sicurezza, 180.
Concordato - Errore di diritto, 102. Creditore separatista - Privilegi,
179.
Disposizioni integrative Fondo di solidarietà nazionale, 70.
Emissione di assegni, 176. Fallimento posi mortem, 71, 72. Privilegio dello Stato, 71.
Rilascio ai creditori beni eredità beneficiata, 177.
Saldi passivi di contratti in c.c., 176.
Titoli e valori di aliena pertinenza, 180.
Tasse e imposte in genere
Costituzionalità decreto presiden ziale 22 dicembre 1954, n. 1217, 107.
Costituzionalità D.P.R. 4 novembre 1951, n. 1582, 108.
Costituzionalità deliberazione 15 di cembre 1938 del Comitato dei Mi nistri, 3. Costituzionalità D.L. 21 gennaio 1947, n. 25, 110, 111. Costituzionalità R.D. 30 aprile 1936, n. 1138, 106. Costituzionalità R.D. 17 ottobre 1922, n. 1401, 109.
Costituzionalità legge 30 agosto 1868, n. 4613, 1, 112.
Costituzionalità legge 20 ottobre 1954, n. 1044, 103.
E.N.A.L. e C.R.A.L. - Agevolazione
ex lege 24 maggio 1937, n. 817, 104.
Esenzione tributaria - Fine di cul to, 2.
Indebita detrazione nella dichiara zione - Inapplicabilità sopratassa, 105.
Interpretazione estensiva norme tri butarie, 2, 104.
Passaggio dai ruoli per anno solare ai ruoli per anno finanziario, 108. Tributi locali
Accettazione concordato tra sindaco e contribuente - Giunta Munici pale, 199.
Deliberazione di Giunta Municipa le, 86.
Diritto sui generi di larga produ zione locale, 125.
Duplicazione tributi comunali, 86. Imposta di licenza - Case di cura
gestite da Istituti religiosi, 198. Imposta di licenza - Cliniche - Ca
se di cura stabilimenti sanitari, 87, 198.
Imposta di licenza - Licenza rila sciata da Autorità sanitaria, 199. Prestazioni d ’opera per manuten
zione strade comunali, 1, 112. Risoluzione conflitto ex art. 289
T.U.F.L., 86.
Tasse a carico dei macellai, 201. Tassa per occupazione suolo pub
blico, 23, 200.
Variazione introdotta nei ruoli, 86. Tributi speciali e tasse
Addizionale E.C.A., 115.
Addizionale 5 % prò Calabria, 187. Canone prò A.N.A.S., 200.
Contributi di miglioria - Concorso finanziario dello Stato, 85. Contributi di miglioria - Determi
nazione - 2 fasi, 81, 82. 83. Contributi di miglioria - Lavoro fer
roviario - Piano Regolatore Ro ma, 84.
B A N C A
COMMERCIALE
ITALIANA
O O 0
BANCA DI INTERESSE NAZIONALE
CASA EDITRICE DOTT. ANTONINO GIUFFRÈ . MILANO
Im porta nte
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M añano della irisprodenza delle Imposte
(Tributi erariali e locali)
(con tavole di riferimento al nuovo testo unico delle imposte dirette)
A n n i
1 9 5 1 - 1 9 5 7
Volume in 4“, rilegato alla bodoniana, pag. I V - 455, Lire 4000
'D isponibile, d e g li s te s s i A utori ;
Massimario della Giorispmfleoza delle Imposte
Dirette, di Registro e di Negoziazione
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TAX POLICY FOE INVESTMENT
Compatibility of Anns.
It has recently become a popular game to attack certain objectives of economic policy not on their merits, taking each by itself, but on the ground of their incompatibility with each other. Thus it is said that it is impossible to combine a high rate of growth with price stability and income redistribution; or to combine full employment, free wage bargaining and price stability; or a high rate of growth and balance of payments equilibrium, etc. Occasionally, the regrets over some objective that would have to be — it is said — sacrificed are reminiscent of the sentiments of the Walrus for the oysters (1).
“ I weep for you ” the Walrus s a id :
“ I deeply sympathize. ”
With sobs and tears he sorted out Those of the largest size, Holding his pocket-handkerchief
Before his streaming eyes.
Yet, it is, in principle, possible to combine, for example, the following objectives:
1. Any desired rate of capital accumulation and therefore any desired rate of growth of income per head.
2. Stability of employment and prices. 3. Income redistribution.
Investment has tended to be looked upon as an activity that creates effective demand, and therefore either employment or inflation. This emphasis was right at a time when the determinants of effective demand were not clearly analysed. Today, the important thing to remember is that investment creates output capacity as well as spendable incomes. Policy ought to concentrate upon the
(1) Le w is Carroll, Alice Through the Looking Glass, ch. 4.
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output-generating aspect of investment, for there are better ways of stimulating effective demand if the extra capacity is not wanted, and better ways of cutting down effective demand if the capacity is wanted. The maintenance of full employment and the prevention of (demand) inflation should be pursued by varying the level of consumption. Similarly, it is as fallacious to argue that greater income equality is needed to maintain full employment effective demand, as it is to argue that inequality is needed to provide sufficient savings for high investment without inflation. There is no dilemma between progress, stability, and equality, just as those who want to slow down growth can increase inequality without having to abandon full employment.
The first strategic decision relates to how much of the national income is to he used for capital formation, and thus for higher future income than would otherwise have been possible. Having decided to raise the desired rate of capital accumulation, low interest rates, easy money and other inducements to invest (e.g. accelerated depreciation allowances, investment subsidies) can be used to stimulate investment to the desired extent. If then total incomes are such that consumption together with the desired investment exceed full employment production at current prices, taxes on consumption (direct or indirect) can be used to reduce total demand at full employment to available supply. This is compatible with any degree of progressiveness in the tax structure. For if the taxes imposed to cut consumption fall mainly on the rich and hence on savings, total taxes collected will have to be sufficiently large to generate an adequate budget surplus. In other words, having decided how to divide the national cake between current consumption and investment (i.e. the rate of growth), the share going to consumption can be divided between rich and poor in any way we desire, subject to possible qualifications about incentives and political acceptability o f taxes. Eacb means (interest rates, tax rates, etc.) can be allowed to affect more than one objective of policy, without disturbing their compatibility. (2)
There are, however, at least two difficulties which may disturb this harmony of objectives. First, private investment may not be amenable to the even control envisaged above. Second, inflation
(2) For a fuller diseussion, see P. Streeten, Sviluppo economico, stabilità e altri fini delia politica fiscale, Rivista Internazionale di Scienze Sociali, sett.-
— 119 —
may be of the wage-push rather than the demand-pull type and may therefore not respond to fiscal policy until sufficient unemploy ment is created. This would give rise to dilemmas between full employment and price stability,- and between economic growth and stability. But both difficulties can be met.
Investment Policy.
It is natural for economists to assume that the desire of private firms to invest is a smooth and continuous function of some strategic variable, such as the rate o f interest or the rate of taxation. Yet, there is evidence which suggests that the desire to invest springs from a discontinuous “ boom or bust ” psychology. Neither the buoyancy of individual business spirits nor the actions of business men are independent of each other. Given an optimistic mood, the desire to invest will be strong, and measures such as higher interest or tax-rates (as well as higher wage rates) will simply be passed on in the form of higher prices. If everyone does this, no one’s sales need be reduced and actions w ill be self-justifying. Alternatively, if gloom prevails, a lowering of interest or tax rates may have no marked effect on investment.
If the investment function is, at least within a range, of this step-like nature, it follow’s that the Government must choose between potentially excessive and inadequate investment. If it wants full employment and economic progress, the desire to invest has to be kept high, which may be above the optimum. Undesirable investment can then be restricted by investment licences and raw material allocation. Some broad strategic decisions would have to be taken as a matter of public policy: Thus Norway, faced after the War with the choice between developing energy at home or a merchant fleet to secure oil from abroad, decided on the fleet and, using allocation of imports, was, as it turned out, successful. In so far as private industry is affected by these strategic decisions, its investment desires will outrun the socially desirable amount of investment, and the brake will have to be applied selectively. Any attempt to reduce excess demand by less specific, global measures (e.g. monetary policy) may well depress activity also in those lines which we want to develop. A discontinuous investment function of this type may provide the justification for establishing priorities, creating inflationary pressure and checking it by direct controls.
VS’ ■
inflation by purely monetary and fiscal measures, the resulting composition of investment may still be wrong. Discriminatory fiscal devices will be discussed below. But in spite of their use, investment in desirable lines may be inadequate and in undesirable lines excessive. Allocation of key raw materials such as steel would help in bringing about the correct composition of investment.
Such a policy would imply keeping interest rates low, and money cheap. For to squeeze credit would be either futile and an unnecessary addition to interest payments in internal and external debt, or disastrous.
Amongst more specific measures to encourage investment in particular lines a r e : accelerated depreciation, if necessary 100 % in the year of expenditure; investment subsidies; loans and tax credits to new firms which need not be repaid if insufficient income is earned in future (to put them on an equal basis with firms with enough income against which to set accelerated depreciation allowances) and, if risky investments are to be encouraged, the maximum of generous loss offset provisions — over time, between different trades and, given a capital gains tax, between different types of gains.
Such a policy would have to accept inflation, at least in its suppressed form, as a permanent state. But if investment behaviour is of the type described above, tlie only alternative would be unemployment, inadequate investment, and economic stagnation.
There are, however, two further difficulties: First, the high level of private investment will tend to lead to an increasingly unequal distribution of property, even if income taxes were highly progressive. Secondly, the inflation will be aggravated by wage earners pushing up wages. This in turn may either interfere with the investment objective (if investment is cut) or with the stability objective by stoking up the inflation.
This difficulty may be met by providing incentives and oppor tunities for workers to save and to acquire ownership in property. To encourage savings and to disperse ownership it may be worth considering the possibility of encouraging workers to buy their own houses, or to acquire equity in other forms of property. This may be done by paying a part of wages as deferred pay in the form of equity in their houses or in their firms. Such an arrangement would have the advantage that the current sacrifices workers are asked to make in consumption will, and will be seen to, bear fruit
— 1 2 1 —
by raising their future standard of living above what it would otherwise have been. Such a policy is both anti-inflationary and increases the equality of ownership in property.
Depreciation Allowances and Investment Incentives.
It is important not to be misled by arguments attempting to show that the cost of depreciable assets should be calculated for tax purposes so as to improve the measurement or the definition of taxable income. A ll these arguments are relevant to the reform of book-keeping and Company Law. But accounting profits for the purposes of the firm’s policies need not be identical with profits for purposes of taxation. W hat matters here are the objectives of public policy, and, amongst them, the way in which the purchase of depreciable assets is stimulated or retarded by various methods of assessment. Investment incentives can be affected in three w a y s:
1. according to what cost — historical or replacement — is allow ed;
2. according to what period is used for depreciation;
3. according to what method of annual depreciation is followed over this period.
The Valuation of Fixed Assets and the Incentive to Invest.
The effects of the present British system of allowing depreciation for tax purposes on historical cost of fixed assets and various proposed reforms (replacement cost, schemes for revalorisation) upon incentives may be discussed under three headings:
1. the effect on the willingness to own productive assents; 2. the effect on the willingness of business to save; 3. the effect on the willingness to invest.
1. Some witnesses before the Royal Commission on the Taxation of Profits and Income (3) claimed that the present system, by penalising the owner of productive assets in times of inflation, reduces his incentive to own these assets in favour of hoarding goods. The Royal Commission agreed that “ it would be a matter for concern if we had evidence to show that the necessity for these
— 1 2 2 —
increased reservations had led to a flight from equity capital when offered to the investor, so that industry was being starved of access to new resources” . But the Commissioners go on to say that there is no evidence for such a flight,
2. Other witnesses argued that the present system prevents
business savings which would take place under a reformed system. (Evidence Day 9, 2605.) The present system is, however, obviously more stabilising than replacement cost depreciation. Even if it were true — and it is by no means obvious — that revalorisation or replacement cost accounting would lead to larger business savings, this would constitute a case for the reform of accounting and company law, not of the tax base.
3. One of the objects of revalorisation and replacement cost allowances is supposed to be the stimulation of gross investment. If the total tax on profits is to remain unaltered — and it must, or else the plea is one for general relief for profits, not for exempting « properly calculated” depreciation allowances — the marginal rates would have to be raised. This would clearly be a disincentive to investment. To this one may reply that, however attractive potential marginal returns, they are of no use to the firm with funds depleted by excessive taxation. But this is only a problem for the small firm and the firm attempting to step up its rate of growth, whose difficultiers can be met by special concessions, if that were deemed desirable. Otherwise the reform proposals clearly discourage investment.
Initial and Investment Allowances.
— 123
In this scheme the rate of profit on new investment in the year of investment would not be affected by taxation. Assume that an investor requires a rate of return of 10 per cent p.a. to induce him to invest £ 100. I f this investment yields at least £ 10 per annum he will embark on it. Now an annual tax of, say, 10 per cent will reduce his expected annual gross profit to £ 9, and the investment would not be carried out. But in this scheme by investing £ 100 he would get a £ 10 reduction in tax. The cost of investment would therefore be only £ 90 and the expected profit net of tax (£ 9 out of £ 90) is still 10 per cent. It is true that tax liabilities would be greater in subsequent years if no new investment occurred then, than they would have been had the allowance been spread. But the way to avoid this is to continue to invest.
One difficulty of such a scheme would be the need to distin guish between real and purely financial, and between new and second-hand, investments. One would not want to exclude all financial investments because this would be an undesirable discri mination against joint-stock companies. On the other hand, one would want to exclude financial investments which are merely transfers of paper assets. A way round this difficulty may be found in a careful classification by an authoritative body of securities which would qualify for exemption. The purchase of second-hand equipment, though not new investment itself, may give rise to it indirectly. Since smaller firms depend on it more than larger ones, provisions which would disqualify it from tax exemption would discriminate against the former. (Firms renting their equipment would also not benefit).
The scheme outlined above would leave both the incentive and the ability to invest unimpaired by tax. It would be equivalent to a 100 per cent initial allowance.
All methods of accelerated depreciation benefit primarily growing firms. Since productivity increases are highly correlated with production increases in manufacturing industry, this is probably what is wanted. Nevertheless, productivity-raising investment may also be wanted in industries where output is not expanding or, possibly, where it should be contracted. Instead of accelerated depreciation, investment subsidies to the installation of specified assets should be used there.
— 124 —
These would have to be specially catered for by tax credits, differential profits tax rates, or other forms of assistance. But it is obvious that a measure of relief which claims to encourage investment should be related to the level of current capital expenditure. Reva lorisation and replacement cost allowances are not, accelerated depreciations is.
An objection to the above proposed scheme is that it would involve a substantial loss of revenue unless the cost of all existing assets which remain to be depreciated could be eliminated as tax deductions. This loss would be reduced, in due course, by the fact that the higher investmeut stimulated by the reform would raise productivity and income and with it future tax receipts. But if one were to attempt to combine the maximum investment incentive with the minimum of revenue loss, or rather to maximise the in vestment stimulus per pound of revenue loss, one would permit firms to deduct either current investment outlays or conventional depreciation on total assets. The static firms will choose normal depreciation on total assets, while the 100 per cent allowance will be limited to progressive firms. The tax burden is thus shifted to the stagnant sectors in the economy.
The great merit of investment and initial allowances, which shorten the period of depreciation, in comparison with using methods of calculating depreciation over any given period which accelerate write-off in earlier years, is that the former separate the element of incentive from the element of accounting and that they can be used much more vigorously, since there is no limit to acceleration o f write-off in the initial allowance, particularly since the percentage write-off can be raised above 100 %, as it is done with the British investment allowance. Initial and investment allowances have also assisted firms in replacing their assets in a period of inflation, without forcing the tax authorities to switch to a system of replacement cost depreciation.
The Royal Commission do not regard these allowances as directly concerned with business profits in inflation (370). Their purpose is to stimulate investment in selected kinds of assets. A t the same time the Commission admit that the allowances do, incidentally, assist a firm which has to replace capital at inflated costs, in so far as its assets are covered by the allowances.
— 125
pressed, however, the business witnesses admit that they prefer them to nothing.
The Commission confirm, what is by now generally known, that initial allowances are more than interest-free loans, for three reasons (408) :
(a) the remission is reclaimable only against future tax ;
(b) the allowance is available regardless of the borrowing power of the business ; it is therefore equivalent to an enlargement of its borrowing power ;
(c) if the business continues it is a permanent loan, and the faster it grows, the larger the permanent loan. In other words, it is a free gift if insufficient income is earned and if the business continues; it is a larger gift if it grows, and an increasing gift if it grows at a growing rate.
The Commission raise several objections to these allowances, which may be discussed under the following headings :
(i) they are unfair as between taxpayers ; (ii) they may encourage lobbying ;
(iii) they are imprecise in promoting their objective ; (iv) they can have little effect on the large concern.
(i) Equity. “ The effective collection of income tax depends in
- 126
Perhaps a more fruitful line of criticism is to ask whether there is any form of taxation which is not, in its effects, inevitably discriminatory. Even if meaning could be given to a perfectly impartial system of allowances — so that “ equal ” allowances were given to all — this would still discriminate. In the absence of a capital gains tax, to allow deduction of depreciation allowances discriminates in favour of those whose property enables them to take risks. For wear and tear and obsolescence are deductible from taxable income as costs of production, whereas accretions to capital values are left untaxed as capital gains. If income were defined as the maximum amount which can be spent now while the value of capital is expected to be maintained intact, what are now treated as capital gains would become part of “ in com e” . Even if realised capital gains were included in taxable income, claimants of de precation allowance would still be favoured, since they can deduct capital wastage while it accrues and not when the loss is realised at the end of the life of the equipment. Even if all these difficulties could be overcome, “ equal ” allowances would still discriminate against those with insufficient income to deduct allowances, and against those who do not own real assets.
Besides the inequity between businesses due to the discriminatory character of the allowances, there is also the inequity between shareholders. The shareholders of those corporations which benefit from the allowances are favoured, and there is no economic justifi cation for this (420).
It follows that, since the present system cannot be justified on grounds of equity, it must be judged by expediency. And if some other system of allowances can be shown to be more expedient, objections on grounds of equity are irrelevant.
(ii) Politics. “ ... accepting that there is nothing sacred about the canons of taxation, it is still possible to think that direct taxation at least is best resigned to a rather rigid principle of impartiality between taxpayers and that a democracy supported by universal suffrage ought to be particularly careful to guard itself against experiments in discriminatory taxa tion ” (418).
“ From the public standpoint, discrimination by industry is not unreasonably associated with the pressure group and the Parliamentary lobby ” (426).
— 127 —
other measures? Similar warnings were expressed in the early days of redistributive taxation — only fiercer and sterner. But although redistribution on the income side is now accepted as a legitimate object of taxation (partly, of course, as a result of electoral pressures) production is still considered taboo. Yet there is no clear reason why this should be so. Since all taxation will have its — partly unintended — effects on prodnction, would it not be wiser to take these consciously into account and formulate policy accordingly?
(iii) Unsuitability. A more convincing argument would be, not that the allowances discriminate, but that they discriminate in an unintended manner, or that they do not discriminate enough. This criticism is implicit in what the Commission say.
“ The categories of asset are so widely embracing that the process, judged as a method of selection, appears con spicuously imprecise for an instrument of taxation, the whole justification of which lies in its service to the economic welfare of the State ” (415).
This is clearly a serious objection and the Commission recommend that the present very broad categories o f favoured investment should be subdivided and that a range of different rates be introduced within those subdivisions. Discrimination by types of assets, in addition to that by industry, may remove some of the objections. (B.g. engineering equipment in the engineering industry but not office desks in the engineering industry, or engineering equipment in the building industry.)
(iv) Large v. small firms. The Commission argue that the allowances cannot affect the larger firms which make their investment decisions three or four years before expenditure occurs. As the allowances are regarded as temporary, and as they depend upon investment expenditure not investment decisions, they can exercise no stimulus. Small-scale expenditure, on the other hand, which is more important for smaller firms, will be encouraged by an increase in the allowances. The Commission note that this may give an unwelcome bias to the planning decisions of business — in favour of short-term expenditure in ready-made improvements and against longer-term and more fundamental planning (423).
— 128 —
A new firm has none at all. Thus although the decision of a large firm may not be greatly affected, the allowances will benefit them considerably more than firms with insufficient income to absorb them fully.
Finally, there is a feature of the allowances which, though not directly relevant to the size and age of firms, may have a bearing upon them in such a way as to benefit the small or the new firm. The allowances will be relatively more important for investments with a low yield than for those with a high yield. This is so for the same reason that interest changes affect building more than motor-car production: the additional depreciation
(the lower rate of interest) forms a larger proportion of the returns on a low-yield asset than of those of a high-yield one.
A problem which the Commission do not discuss but which may become important if selective and variable investment allowances are going to be used more widely, is the manner in which expectations about future changes affect investment decisions. At one point the Commission indeed say that the best result would be obtained if expectations were created that the allowance is only temporary. In a system of variable timing of depreciation deductions, as existed in Sweden, such expectations would encourage quicker writing-off. In our system, they would advance the installation of equipment. But speculation may go the wrong way. The granting of allowances brings it home to the business world that the government hope to stimulate investment. I f this leads to expectations of future higher allowances, investment plans will be postponed and this may force the government to take the step which it tried to avoid. And conversely, reductions of the allowances may be taken to indicate future removals. Investment will be stepped up. This is an objection to all policy changes that attempt to affect incentives.
Taxation and Size.
The problem in what manner our present system of taxation affects firms of different size differently cropped up in several connections. The initial question, whether the encouragement of small firms is a good thing, does not concern us here. Whether one takes a Schumpeterian view of size, or whether one takes the view, shared by the Fabian witnesses (4) and the National Union
— 129 —
" ' '■ ' ’ ■ ' ‘ ‘ V i ■
of Manufacturers, that small business is desirable, in either case a knowledge of the actual impact is important.
The following factors are said to militate against small com panies:
1. The high level of taxation forces companies to have greater recourse to outside finance, whether for replacement or for expansion, than would otherwise be necessary. But the imperfections of the capital market prevent or at any rate impair, the access of the small company to the capital market.
2. The fact that the small firm cannot borrow as much as the large firm further aggravates its position, because debenture interest is exempt from profits tax. Thus the large firm has not only easier access to new capital, but, having borrowed, is favoured in comparison with those who have to depend upon their own capital.
3. Certain expenses which can be deducted in assessing taxable profits enable the large firm to take greater risks and reap greater benefits, because it has more income against which to set olf these expenses. The advantage is further increased if these expenditures are subject to increasing returns. Expenditure on advertising and workers’ welfare are possible examples, but research is the outstand ing one. The small firm could somewhat counteract this if its contributions to research organisations and university research projects could be deducted.
4. A system in which undistributed profits are favoured (both directly, through a differential rate, and indirectly, through the high level of surtax and untaxed capital gains), encourages self- finance. This limits the flow of savings to outsiders and strengthens the established large firms.
5. The initial and investment allowances can be set off against current income. But if no, or insufficient, income is earned to absorb the whole allowance, the allowance is lost. The Commission recommend that unexhausted capital and investment allowances should be capable of set-off against general income for any future year (506). (The Minority reject this recommendation on the ground that it would encourage avoidance devices such as the acquisition of unsuccessful and moribund concerns. Memorandum of Dissent,
altogether. Even in the most favourable case, when the question of the reduction or elimination of the allowance does not arise, there may be postponement.
6. Some witnesses have claimed that historical cost depreciation discriminates against the small and medium-sized business. (Mr. Chambers, Evidence, Day 4, p. 86, para 821). In so far as this is a matter of the greater difficulty of borrowing, it reduces to point 1. But there are two additional points. First, the problem of discontinuity in replacing capital equipment in times of inflation, which is at the core of the problem, is more serious for firms with few physical capital assets than for those with many. Thus a company with only one ship has more serious difficulties in accumulating a depreciation fund in times of inflation when historical costs only are allowed than a company with many ships of different ages.
Secondly, the argument against the replacement cost view as a
basis for tax assessment, that it may involve a higher marginal rate
and thus discourage investment, is less powerful in relation to small companies. For although the alternative in the form of a relief which would apply mainly or only to marginal profits, but leave average profits heavily taxed, may indeed increase the will
ingness to invest, it may also reduce the ability to invest of the
firm with inadequate funds. Thus there may be an argument for replacement cost depreciation as a tax basis, even though it might involve raising marginal rates, on the ground that it would increase the ability to invest of small firms. This point is really point 1, reinforced by a rebuttal of the generally valid incentive objection to replacement allowances.
7. The possibility of setting losses against gains favours the large and the established firm against the small and the new one. In particular, where risks of innovation are important, the large and the established firms can branch into risky new lines, being assured of a Treasury subsidy in the form of a reduced tax bill if losses occur, whilst the new or the small firm would have to carry the full losses itself and may be forced into bankruptcy. It is now also possible for the current losses and profits of a group of companies to be consolidated for tax purposes, in accordance with a recommendation by the Tucker committee on the taxation of trading profits. The Minority of the Royal Commission recognise the danger of tax avoidance and the encouragement of uneconomic
risks and recommend that losses incurred by a subsidiary should be ignored where the subsidiary was acquired in the knowledge that it was incurring a loss (Memorandum of Dissent, para. 146). But as things stand, it pays to acquire precarious businesses which have made heavy losses as the flourishing firm can set these losses against future profits.
Ih is true that the situation is somewhat alleviated for the new and small firm by the fact that business losses can be carried forward indefinitely as an offset against future income from the same source, and that they can be set off againts income from any other source in the current and succeeding year (5). Terminal losses can also be carried back for three years. But although these provisions benefit somewhat the smaller business, within that group they favour those with large incomes and a variety of sources (6). A business without assured future income and without alternative sources of income does not benefit. Wider carry-back provisions would be an additional help, but the Commission — both Majority and Minority — reject these for pratical reasons (486; M emorandum of Dissent, par. 145).
Separate from, but in some respects related to, the difficulties of small firms are those faced by new firms (compared with old firms) and by rapidly growing firms (compared with more slowly growing ones).
Time and again witnesses lamented the fact that new businesses had to overcome monstrous obstacles to-day. Many of the argu ments used in relation to small firms apply ipso facto to new firms. Small savers prefer pension funds, savings banks, building societies and insurance companies — all of which are cautious lenders. Their capital is largely available to the successfully established and large concerns.
Against this, there are also factors favouring the small and the new firm, apart from such institutions as tire Industrial and Commercial Finance Corporation and the National Research Deve lopment Council.
(5) The Minority recommend that losses should be offset only against future income from the same source.
(6) It is a general characteristic o f all allowances against tax liabilities that they discriminate against those whose income is insufficient to absorb the allowance. The situation is similar to that o f low income earners whose income is less than the allowance to which they are entitled. But although this can be looked upon as a form o f discrimination against small incomes, from an incentive point of view such a situation may be welcomed; the low income receiver with an unabsorbed allowance has an incentive to earn enough to benefit fully from the allowance.
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1. There is a minimum exemption limit from profits tax at £ 2,000 per annum, and abatements up to £ 12,000 per annum. But these provisions can also be used by large firms to avoid tax liabilities. Large firms . have been tempted to conduct their business through a number of separate companies, each getting the benefit of the relief (557, 1031). The Commission therefore recommend that the exemption and abatement reliefs should be removed.
2. We have seen that investment and initial allowances may have a greater effect upon the investment decisions of small firms, because their planning decisions are less long-range. They ' are in a better position to adapt their investment decisions to make the best use of the allowance.
3. Mr. Wiles argued before the Commission that historical cost accounting favours the new firms, but this would have to be qualified in several important respects. It is not a question of new v. old firms, but new v. old a ssets: an old firm may have many new assets.
It appears that on balance our tax system favours the large firm and the established firm, and may well encourage the trend towards concentration and monopoly. Whether this is good or bad is another question. It is certainly not self-evident that it is neces- rarily wrong.
Finally, there is the differential treatment of firms growing at different rates. The present system may handicap the rapidly
growing firm, particularly if it is new and small.
