DOUBLE INCOME TAX.

Press, Volume LIX, Issue 17807, 5 July 1923, Page 9

DOUBLE INCOME TAX.

SHIPOWNERS' VIEWS. POSITION IN THE DOMINIONS. (BI CA3LE—PBBS3 ASSOCIATION—COPTBIOHT.) (a-cstsaliam ahd k.z. CABLE ASSOCIATION.) (Received July 4tli, 8.45 p.m.) LONDON, July 3. With reference to Sir William Joyn-son-Hicks's new clans© in the Finance Bill relating to shipowners' double income-tax, shipowners express the. opinion that the new clause is the first result of a world-wide movement in favour of the abolition of all douwo taxation on the rround that such taxation seriously restricts tho development of trade. The subject is being examined by a League of Nations committee and the international chambers of commerce.

The new clause is primarily duo to tho United States' offer not to tax British ships if Britain does not tas American-owned ships. It is learned that the subject may *o raised at the Imperial Economic Conference in the hope of making arrangements with the Dominions to avoid the present system. It is admitted that tho position of the Dominions is different, none having Dominion-regietered ships trading to Britain, except the Commonwealth Line, which, aa a State property, does not pay taxation either in Britain or Australia.

Nevertheless shipowners express the opinion that it will ultimately bo to the advantage of the Dominions, which are chiefly primary produce- exporters, to assist in removing burdensome taxation on shipping, because onlv by reducing running cost 3 can reductions in fares and freights be made possible. At the present time .the shipowners engaged in the Australian trade complain of the unfair Australian taxation under which they have to pay both Federal and State taxes on an assumed profit of 10 per cent, on their gross takinga whether they made a profit or not. Tne owners suggest that though a reciprocal agreement similar to the Anglo-Ameri-can one is impossible in the case of Australia, it would eventually benefit Australian producers if Australia either did not ta\ British shipowners at all, or received from the British Government a portion of the taxation which the owners paid to the latter. It is argued that if the Dominions abandoned their taxation on British shipping lines they would have an irresistible claim for reductions in fares and freights which arceventually paid by the Dominions' peoples. Shipowners believe that the ideal system of removing hampering restrictions on trade would be one under which all shipowners would be taxed only in the country of their ships' registration. [ln the House of Commons, in Committee on tho Finance Bill, Sir William Joynson-Hicks, Financial Secretary to the Treasury, moved the insertion of a clause to remedy the grievance regarding double income-tax on profits in the shipping business. He proposed to take power by Order-in-Councii to exempt tho profits of foreign shipping businesses, conditional upon reciprocal exemption. The clause was agreed to.]