RACING TAXATION.

Auckland Star, Volume LVI, Issue 84, 9 April 1925, Page 9

RACING TAXATION.

KILLING THE GOOSE. WHAT FIGURES SHOW. An authority on racing taxation expressed the opinion to a New Zealand "Times" reporter that the Government has gone very close to "killing the goose," and he contends that this is clearly proved by the effect of the most recent imposition of the State. Round about half a million a year is taken out of racing in taxation, and it is claimed that the sport is not wealthy enough to stand the strain, and also that there is a danger of some of the best of the owners feeling compelled to retire from the turf. The clubs, too, are complaining bitterly, and it lias been computed that the total taxation they paid in respect of the 1923-24 season (£554.000) was only £00,000 less than their total liabilities. The tax on dividends was increased not very long ago from 21 per cent, to 5 per cent., and those who have gone into the figures carefully say that there has been a steady fall in the totalisator revenue as a result, which, they argue, shows that the taxation had gone as far as it could safely go before the extra 2J per cent was levied.

"If you increase the tax," said one who had studied the position, "you decrease the turnover of the totalisator, and thus discourage owners, because the smaller the turnover the smaller the stages, and the smaller the stakes the less an owner's chance of going in for the breeding or the buying of the best of horses. I am convinced that a reduction of taxation would be beneficial to all who take part in the provision and the enjoyment of the sport of racing, and it might benefit the State, too. However, apart from these considerations, it is only fair to the public .to make a reduction.

"The extra 2* per cent divided tax was put on in 1021. Just prior to Christmas it came into operation, and for the four following months the totalisator returns so far as racing was concerned showed a depreciation of from 20 to 27 per cent. The total depreciation for the racing year was £1,678,000, which was increased in recent years, vith the result that for the last racing season the totalisator receipts were £2,100,000 less than they were prior to the increase by 2A per cent of the dividend tax. The effect of that is that the State has increased its revenue by only £19,000, and the amount received by the clube has decreased by £162,000. In the opinion of many, the Government has gone too far."

It is an interesting fact that racing taxation consists not merely of totalisa" tor taxation, but includes taxation of gate receipts, sales of cards, luncheons, etc. Then the stakes won by owners are taxed. As regards the owners, it was mentioned that while the tax on stakes some years ago was only 1 per cent It had in recent years been as high as 10 per cent, and at present was 5 per cent.