TAXATION PROPOSALS.

Auckland Star, Volume LIII, Issue 190, 12 August 1922, Page 11

TAXATION PROPOSALS.

MORE EQUITABLE METHODS.

Mr. Geo. Creagh (chairman of Auckland Stock Exchange), asked hie views on the reeomendatiohs of the Taxation Committee, said: "AH will welcome reduction in the income tax as it is .at present strangling industry. It would be much more equitable if companies were only called upon to pay income tax on undivided profits. Shareholders would then still be liable for individual income tax. Those whose total income do not reach the exemption limit would however escape, while the wealthier ones would still have to bear their share of the burden. I believe in taxing individuals and not companies. The evils resulting from the heavy income tax on companies are shown from the evident disinclination to invest in shores in industrial concerns. Any system of taxation that tends to divert money from the development of industries, must be recognised as bad for the country." "There is a most important suggestion by the committee, and one 'with which I thoroughly agree," said -Mr. Creagh, "that equal taxes should be levied on all concerns in the same line. It is most unfair for instance that the Auckland Gas Company should pay heavy taxation and have to compete against an Electric Lighting Board which escapes. Just the .same, insurance companies pay taxation and the Government office goes free. It is the same with ell Government and municipal trading concerns, although they already have the great advantage of not being compelled to pay dividends. I trust, «3 recommended by the committee, inquire will be made into the working of the Sales and Turnover Tax, which is stated tjo have proved successful in Canada and France. What we want is some more equitable method of raisins money for the State than that provided by the Income Tax."