Taxation in New Zealand 15 



Act of 1907 a person is deemed to be an absentee "unless he has 

 been personally present in New Zealand for at least one-half of 

 the period of four years immediately preceding the year in and 

 for which he is assessed for graduated land-tax." 1 



The land tax, together with other legislation and the natural 

 tendency toward the division of large holdings, a tendency not 

 so strong in pastoral as in agricultural countries, has doubtless 

 had some effect in reducing the size of the great estates. In the 

 year 1896-97, 17.5 per cent of the holdings were of 320 acres and 

 over and 90 per cent of the total acreage was thus held, while in 

 1907-8 such holdings were 20.94 per cent of the whole and com- 

 prised 87 per cent of the total acreage. These figures do not 

 show any marked change, and it was not to be expected that they 

 would, for an estate of 320 acres is a relatively small holding in 

 a pastoral country like New Zealand. The great estates, how- 

 ever, show a considerable decline both in number and per cent of 

 acreage. In 1896-97 there were 501 holdings of 10,000 acres 

 and over, containing 54 per cent of the total acreage, and in 

 1907-8 there were 484 of such holdings, containing 44 per cent 

 of the total acreage. In 1896-97 there were 112 holdings of 50,- 

 000 acres and over, comprising 30 per cent of the total acreage, 

 while in 1907-8 there were only 84 estates of this class, compris- 

 ing only 22 per cent of the total acreage. 2 



But some, at least, of these estates, instead of being broken up 

 and sold to small holders, have been divided among the members 

 of families, before or after the death of the owners, so that the 

 power of these families remains almost as great as before, while 

 the government loses something in the way of graduated tax. 

 This loss has not been great, having amounted to only £9,153 in 

 the ten years 1896 to 1906. The government has lost a good 

 deal more by having purchased and subdivided certain large hold- 

 ings, as the Cheviot estate. The total loss in graduated taxes 

 that would have been paid had the estates remained intact has 

 been estimated at £82,909 for the ten years from 1895 to 1905. 3 



J 7 Edw. 7, 1907, no. 18. Year-book, 1908, pp. 563, 669. 

 2 Year-book, 1908, p. 469. 



'Returns Presented to Parliament from the Land and Income Tax De- 

 partment, B.-24b., and B.-24a., Session of 1905. 



263 



