FILM TAXATION.

Press, Volume LXVI, Issue 20036, 18 September 1930, Page 5

FILM TAXATION.

ENQUIRY WELCOMED. (mess association raLEGam.) WELLINGTON, September 17. "I am very pleased indeed that the Chamber of Commerce intends to have an enquiry into the taxation of films in New Zealand," said Sir Victor Wilson, president of the Film Kstributors' Association. "Personally 1 do not think that the trading conditions under which the films work in New Zeaiand are sufficiently known. First, we pay Id duty plus a surcharge which is a revenue duty and not a protective duty as there is no industry in the Dominion, and wo feel that for the necessary money for the good government of the country, this method should have been used as is the general principle throughout the world. Nest we paid duty which gives us the right .to trade iu the Dominion. Next on our profit and loss account of trading within the Dominion an arbitrary amount of 12J per cent, of the takings constitutes the taxable amount under the company tax. This is a very heavy tax indeed, and was quite & novelty in principle, but. we have paid it. On investigation by leading firms of auditors, taking twelve leading companies, it was found that the profit in relation to turnover was less than 5 per cent., and that the same companies pay on the basis of 12} per cent. Then we have the latest legislation. First the Government budgeted for £30,000, and again our auditors on most careful investigation found that the tax would yield £88,500. This surely gives every justification for a very careful investigation."