The Farmer and Taxation.

Bay of Plenty Times, Volume XLIV, Issue 6485, 11 September 1915, Page 3

The Farmer and Taxation.

(To tne Editor.) Sir,—According fo Mr Macraiilan I am "totally in error" in saying that Co-operative Dairy Companies are specially exempted by a benevolent Government from paying Income Tax. I presume then, that the following provision in the "Land and Income Assessment Act1' is inserted merely by way of a joke. Under the heading of "Exemptions from tax" are these words:—"All income derived or received by or on behalf of any co-operative dairy factory company (meaning thereby a company formed for the purpose of manufacturing dairy produce from milk supplied in accordance with its articles or rules) but in so far only as such income is derived from the manufacture of dairy produce from milk jo 3upplied by its members or shareholders, and in cases where the articles or rules provide that the amount of the exemption shall be distributed solely amongst the members or shareholders who have supplied milk to the company." I should think that this is at least as authoritative as Mr Macmillan's statement. Mr Macmillan says "Every inducement is given to people to settle on the land." Exactly so—and this exrmptiom from Income Tax to farmers' Dairy Companies is evidently one of the inducements; but why should people be exempted from tax if they get their living in one way and subjected to tax if they get it in any other? My point was not whether farmer got their living too easily, but whether because they form themselves into Co-operative Dairy Companies, they should be allowed to make and accumulate profits without having to contribute from such profits the same amount of taxation as is imposed upon other companies.

I think the question is a fair one, and it is not answered by Mr Macitiillans somewhat pointless rep'y."—l am, etc., BUTTER-FAT. Tauranga, Sept 9, 1915.