The Farmer and Taxation.

Bay of Plenty Times, Volume XLIV, Issue 6488, 15 September 1915, Page 2

The Farmer and Taxation.

(To the Editor.) . ". Sir,-—Your correspondent m\ fat" has failed to grasp cance of the provision i n L Sl^<B--and Income Assessment Act f uUtid quotes. He tails to see fh at ;J 8t b8 emptios i 3 only applicable In 0 * c**e** it is distributable sol™, -m ***"» members or shareholders "PV tk e sur,,Hedmil kto th eco^p r a ß Dv^oh av it is plain, therefore, that th Surel S is, that any available end of "the financial ye!?* * «*»■■ company is bound by itq aJ-^ th 6 distribute amongst the I! les whom they pSrch^dl^^ to ! material, is not treated taiß but as a deferred payment r l"Conir supplied, in other wordrVFji**' There is no special exeSnti 'bllll »*- AH manufacturing comp^, I"^.^ titled to show as an exemrni /""' tax the price of their ; a T?/ fOm as^ laid down on the premies Hp? why should dairy complies not f " ; the same privilege? l bave llf the Dairy Company h Do 1L sources of deriving . incom J aj?^ manufacture of dairy jroducU tb? come so derived is not « In' Many d-iry companies, ?„ "£***. have .shares in box compa e § freezing companies, and obtain ,■? dendsfrom these invertnuSS ' ?'* ther. if after paying a boTus\^ Pliers, i.e.. a further payment T account: of raw material Buppife?L* is a payment to shareholders i« T shape of dividend. This i, Ji he bated solely amongst CS^ th sharohoVrs In'^SffiSrS cap.tal they have invested in therom P"y.«nd « not m.de tv them beaS th«y have Bupp , ied SQ «««J material to be manufactured, Z consequently, at it may be the frS s of .note mane industry it bee

To take up the attitude that your correspondent does, that dairy S pames should pay income tax on any portion of the cost price of the r ra °* material is monstrous.

The interpretation I have put unon the clause quoted by your cor espon dent coincides with that O f the Co l miss.onero Taxes, and at the end of the financial year when a return i. made, the Commissioner makes hi, assessment, and all the necessary forma are gone through which end in cheques being paid over to the local Postmastw on account of the income of the two dairy companies that I have the honour to be the public officer of.-I am, etc., CHAS. E. MACMILLAN, Secretary, rauranga Dairy Company, Ltd.