DOMINION TAXATION.

Auckland Star, Volume LII, Issue 280, 24 November 1921, Page 8

DOMINION TAXATION.

ON BUSINESS LINES. ROYAL COMMISSION SUGGESTED. (By Telegraph—Press Association.) CIiHISTOIiURCH, this day. The Chambers of Commerce Conference resolved: "That the Government be recommended to appoint forthwith a Royal Commission of the best qualified representative men to inquire into the ■proipcr principles and incidence of all taxation in New Zealand, and make recommendations ac to all taxes, whether direct or indirect."

Mr. A. G. Luim (Auckland) in tha cour.=e of discussion said he had the greatest admiration for Mr. Massey's industry 'and ability, but none of them would say he was a heaven-born financier. The country was eulTeving from a period of extravagance, in which the Government had shared. There was no bettor instance of the Government's lack, of foresight than the recent statement by the Prime Minister that if the income tax were confined to independent incomes the rate would be 3/ in the £. Jf. after the matter had been investigated by business men, it was found that such taxation was necessary, the country should be prepared to face it. Business men were being called 'to account now, and they were justified in asking for full inquiry into the taxation question.

It was suggested that the Royal Commission should include not only business men, but alao farmers, .political economists, and Government official*. COMPANY TAXATIOX. Tiie following remits were a.so carried:—

" That in the meantime tiic Government be urged to amend the existing legislation to ensure: (a) that sharehefldcra in public companies shall be t;ixed upon that portion of profits distributed as dividend and upon the same graduated scale as would be applicable wcro the n3mc income derived from iho profits of private partnership and (or) from any other source; (b) that that portion of companies' or firms' profits set apart for distribution under a bonaiide profit-sharing scheme shall be deductible from assessment for income tax and that the tax be collectable from the participants in the same manner as in the case of salaries."

■' That municipal and >tate undertakings in competition with private enterprise, or which cut out -such competition a= might be undertaken by private enterprise, should be subject to taxation." LUXURIES AND AMUSEMENTS. ■Mr. Leigh Hunt, on behalf of the Wellington Chamber. moved—" That in view of the fact that many of the usual sources of revenue of the Government are likely to show a pronounced ehrink.iffe owing to the present financial stringency, thU conference is of opinion that the time has arrived when much larger revenue should be derived from luxuries und amusements." Mr. Hunt said since the remit was framed Mr. Maesey had announced his intention to place a further tax on amusements. No doubt Mr. Maesey would be glad to have the public behind him. He thought young men and women wore earning good salaries, but under the income tax exemption wore escaping taxation.

Mr. Tyers (Christchurch) agreed. Bachelors and spinsters, he said, were not contributing their share of taxation, but the remedy would be better attained by an amendment of the Income Tax Act in the direction of lowering the exemption. An increased amueeiront tax would strike at the fathers of families. .Mr. \V. G- McDonald, Chairman of the Board of Trade, said he had been trying to devise « luxury tax, and found some difficulty. The remit was adopted. EXTENSION OF TRADE. Additional remits were carried: "That, with the object of extending the export trade of the Dominion in prospective favourable markets which hnve hitherto not been adequately exploited by this Dominion, the Government bo urged to appoint business experts ns trade commissioners, particularly in the East: that, it be a recommendation to the C.'overnment that it in advisable that the High Commissioner have associated with him ii committee, representing importers from and exporters to New Zealand in connection with the dominion representation on the Imperial Shipping Committee; that this conference endorses the report of the Imperial Shipping Committee issued this year with reference to bills of lading, and :igain remind.-; the Government of the urgent importance of amending shipping legislation in New Zealand, particularly in connection with provisions of bills of huling in accordance with recommendations of previous conferences; that the Government be reminded of resolutions passed at the conference held in November, 1910, and confirmed at several subsequent conferences, as to the necessity for a flat rate of freight between San Francisco. "Vancouver and the main porta of New Zealand being a condition of all future mnil contracts, and of promises made by the Postal Department that the matter would be considered before settling any further renewals of such contracts; that this conference appreciates the steri3 taken by Government already in economising, but stresses the stern necessity for further economy wherever possible, and making preparation for expenditure in keeping with a conservative estimate of future ' income.