AN ASSURANCE.

Auckland Star, Volume LXVIII, Issue 280, 25 November 1937, Page 10

AN ASSURANCE.

NEW SHAREHOLDERS.

MARTHA GOLD MINING CO.

EQUITIES PROTECTED.

By Telegraph.—Parliamentary Reporter.) WELLINGTON, Wednesday.

An assurance was given in the House of Representative* to-day by the Minister of Finance, Mr. Nash, that the equities of the new shareholder* in the Martha Gold Mining Company (Waihi), limited, would be safeguarded when the new legislation outlined in the Finance Bill, making the original shareholders liable for unpaid tax incurred by the Waihi Gold Mining Company, Limited, was put into operation.

The dividend on which taxation was not paid was declared in 1933 and the amount of _ tax due amounts to approxi IE

During the second reading debate on the bill today Mr. W. A. Bodkin (National, Otago Central) said that if the circumstances that had induced the present legislation had been brought before the last Government remedial measures would have been taken. The Taxation Department had no doubt not become alive to the facte until 1938. Tax Evasion. Mr. Bodkin eaid he was in accord with the provision to make shareholders who had evaded the tax pay what was due to the State, but thoae who had purchased shares in good faith in the Martha Gold Mining Co. (Waihi) Limited, after the distribution of the dividend mentioned in the clause should be protected. Legislation tlu.; would injure an innocent party was not justified. He had no sympathy with those who evaded their responsibility, and the State was justified in insisting on pay* ment. Provision should be made in the bill, however, to exempt from the payment of the tax those shareholders who had bona fide purchased their holdings without knowing that there was , a contingent liability. In-the course of his reply to the second reading debate the Minister of .'finance, Mr. Nash, said he was astounded at the Opposition argument* concerting the retrospective nature of the legislation. The company commenced operations 50 years ago and paid its first dividend in 1803. In 1021 it returned half its capital to the shareholders and in 1026 returned half of the remainder. It had paid £6,263,804 in dividends and had in addition returned to shareholders their capital. Pali lor Previous Year. After repeating the statement*, be made when he moved the second reading in respect to the reason for the legislation the Minister said: "To show that they knew they were liable it is only necessary for me to say that subsequent to going into liquidation the Waihi Company* paid the tax for the previous year." In reply to Mr. Bodkin, the Minister said' he thought there were 102 new shareholders in the Martha Oold Mining Company (Waihi), Limited, and he gave an' assurance that their equities would be' safeguarded. He added that the liquidator was also tue secretary of the old "company and secretary of the new company.