PUBLIC OPINION.

Bay of Plenty Times, Volume XLIV, Issue 6499, 28 September 1915, Page 2

PUBLIC OPINION.

The Farmer and Taxation.

(To tho Editor),

.Sir,—Mr Macmillau is evidently very anxious to get on to the public platf<wm to talk about this matter, but I think it can be settled without having resort to such heroic methods as lie proposes.

I hope he will pardon mo if I «ay that he has somewhat lost the sense of proportion in regard to his connection with the argument.

He talks of being a "challenged person," and wants tho choice of "ground and weapons"; but does he forget that ho "butted" in without any challenge and that the onus lies upon him to prove me wrong, not by mere denials, but by facts. As to his "ground and weapons," suppose we let the latter wait until we have settled the former. Lord Bacon wrote: —"It is a good point of cunning for a man to shape the answer he would have in his own words and propositions"—and ;Mr Macmillan is an apt pupil of Bacon. My point all along has been (and it is abundantly clear from my letters) that-co-operative dairy companies are extMTipted from paying income tax upon "profits" (allowing for tow insignificant exceptiuns) while other companies have to pay tax. Mr Macmillan wants me to deny that dairy companies pay income tax on "dividends"—a fact 1 do not dispute for tbw reason that "dividends" are one of the insignificant exception! as I shall show. I bavo already quoted the exact word 3of the Act in regard to Dairy companies, and need not repeat then; but it may be as well to quote the Act as affecting other companies. "Its (the company's) income derived from business shall be deemed ta include all profits derived from «w* business, etc., and including til dividends earned and sums carried tv my service, sinking, etc., fund,' bow- . soever designated, and income ffl shall be assessed and levied accordingly." L( t us taky the profit and \W account of the local dairy company for tbs year ending June last by W^ of illustration. This shows "profits I £1121 2s 8d after paying oil manufacturing and working expenses. A company ether than a dairy company would have to pay on-that sum a t»X of la in the *> or £50 la. A daitf company, provided it distributes Hs protiis to its suppliers (as per the A*v pays NOTHING. "But," gay Mr Maeniillon, Mwe w pay tax on dividends" as distinct frofj "bonus." Very well—the amount shown as dividends in, fhe profit and •<» account referred to igj£B4 -Is: income tax. Is in th« pound is Si <X F«j* ' guineas instead of £p6.,15«! And w Matimillan will have it tfiere is *? exemption. ■ - In the words of Shakespeare *-*Me- _ thinks lie doth protest too mucb." I am, etc., ' . . bijttkrfat. Tauranga, Sept 21th, 1915.