Article image
Article image
This article displays in one automatically-generated column. View the full page to see article in its original form.

Building Societies and the Land Tax.

The relations of building societies to the Land Tax Department are disclosed by the correspondence which has taken place between Commissioner Sperrey and the Nelson Permanent Building Society. The return made by the latter has been challenged by the Commissioner on the ground that the Society’s assets and liabilities have not been treated in the same way as those of an ordinary trading company, the directors considering that the value of each subscriber’s interest is a legitimate deduction, whereas the Commissioner insists that nothing shall be taken off except what is owing to persons outside the Society. The Colonist puts the case thus : The Commissioner, in a genuine official spirit, is determined to obtain as large a yield as possible from the tax he is appointed to manage, and treats Building Societies as companies “ formed wholly or mainly for the purpose of gain or profit divisible amongst the shareholders.”— Op the other hand it is contended that as the Building Societies Acts both here and in England class them as Friendly Societies, imposing restrictions that materially lessen the possible profits, and granting privileges no one would dream of conferring on trading companies, no return can properly be called for of the funds as a whole, but that each person concerned should include the value of his interest in his statement of the personal property belonging to him. Mr. Sperrey, however, insists on dealing with a Building Society as “ a Joint Stock Company,” though he must be well q,ware that it j.n no sense cpmes under the laws' affecting that class of associations ; while the directors submit l> that the shares held by members are in almost the same relative position as they would be were their amount placed as fixed deposits in a bank, seeing that any shareholder may withdraw the amount of his deposits at any time by giving one month’s notice of his intention to do so,” The directors of the Society refuse to comply with Mr. Sperrey’s request, which in their case involves the payment of the tax on the sum of L 21,350.

This article text was automatically generated and may include errors. View the full page to see article in its original form.
Permanent link to this item

Bibliographic details

Building Societies and the Land Tax., Ashburton Guardian, Volume 2, Issue 168, 16 October 1880

Word Count

Building Societies and the Land Tax. Ashburton Guardian, Volume 2, Issue 168, 16 October 1880

  1. New formats

    Papers Past now contains more than just newspapers. Use these links to navigate to other kinds of materials.

  2. Hierarchy

    These links will always show you how deep you are in the collection. Click them to get a broader view of the items you're currently viewing.

  3. Search

    Enter names, places, or other keywords that you're curious about here. We'll look for them in the fulltext of millions of articles.

  4. Search

    Browsed to an interesting page? Click here to search within the item you're currently viewing, or start a new search.

  5. Search facets

    Use these buttons to limit your searches to particular dates, titles, and more.

  6. View selection

    Switch between images of the original document and text transcriptions and outlines you can cut and paste.

  7. Tools

    Print, save, zoom in and more.

  8. Explore

    If you'd rather just browse through documents, click here to find titles and issues from particular dates and geographic regions.

  9. Need more help?

    The "Help" link will show you different tips for each page on the site, so click here often as you explore the site.