FINANCE AND COMMERCE

Press, Volume LXXVI, Issue 23003, 24 April 1940, Page 11

FINANCE AND COMMERCE

SPREADING stock j - PRESERVES TAX COMMISSIONER’S ■“ explanation EEPLY TO CHAMBERS OF COMMERCE IPSX39 »8SOC!*IION rBLEr.gAM.I i WELLINGTON, April 23, Th : response to a request by the Associated Chambers of Commerce cf Zealand for an explanation of the rosifion concerning th. valuation of Ldlng stocks under the recent legis- , "the Commissioner of Taxes has the chambers as follows: * toreply to your letter if April 15. T to advise you that under section is of’ the Land and Income Tax Amendment Act. 1939. stocks must he 1 nn cne of the bases detailed Iwein and the result of such valuathat any reserve which existed rviouSy legally becomes assessable derived during the year ended 31 1940. If- however, any taxS 1 who has created stock reserves fr W years considers this procedure j. inequitable. I will, on receipt of a Sritlen application, be prepared to SSr the spreading of existing reserves either forward or backed as desired by the taxpayer. giich application should be made as .rnnas possible, but must reach me fc? later P than the date of the filing of SSSrnTcf income derived during year ended March 31. 1940. Each location must state; (1) The amount Sf the-reserve: (2) when the reserve created: (3) full details ' nf any fluctuations since it was created. When an application to spread et>sexvc existing at April 1, 1939, over cast years is made. I reserve the right fa amend back assessments in such a maimer, as I consider just and equitable? in ; the circumstances. If the application is to spread the reserve ferfyadL no extension beyond March 31 - 134 C will be permitted. Where'in any case a taxpayer’s application for the spreading back of the resSvehas been granted and it’s later kdw'ered that the 1940 valuaUon would m fact not have operated to brfjfe the whole of the disclosed resert#s.7lnto the assessable income for theifcbome year ended March 31. 1940, andtit appears that the spreading of the%Heged reserve has 'suited in the spreading: of part of that taxpayer’s 194 ft assessable income, such assessments will be reviewed and that part p" the‘reserve assessed in the year endw- March 31. 1940. in accordance with the amended legislation.. All.- taxpayers Who lodge applica-tions-should be prepared to produce evident;e ;that a stock reserve existed before the 1940 valuation and those who are not aware of the actual reserve which existed are advised to value 1940 stocks on the _ basis previously adopted-in order to compare that figure with the result obtained l from the-valuation in accordance with bisection 16 of the Land and Income : Tax- Amendment Act 19°9. PRODUCE AND GRAIN INQUIRY FOR SEED WHEAT Wheat for the autumn sowing is now being inquired for in the grain and produce markets. It is hoped that the area sown will again show an increase , or. last season’s—and present indications are that it will—but it will probably, be jibout the end of. next month, whenAßgL bulk seed - has gone any reliable estimate of the,-sqwina\can £|be obtained; QnionsTitLve again'firmed in the local market.the latest,quotation .being £7 tsecks,_extra). The-'" potato market is quiet with values showing little Growers' are- again 'reminded about the heed for care,-in preparing their crops for railing, Only good duality sacks should be , used and in- order to avoid trouble at the port of shipment the weight should not exceed 1801b. In a report last week the weight of sacks was inadvertently given as 1001b. . Seeds are Quiet with few alterations in prices. ’ Quotations The following quotations to farmers on. trucks at country sidings, unless otherwise indicted, are supplied by the president Of the. North Canterbury Gram. Seed, and Produce Merchants’ Association—- „ Wheat—Milling, to.b. Tuscan 5s 7d, Hunters 5s 9d, Pearl 5s lid. Marquis ® "fc (Final payment of 3d a bushel on afi wheat at the end of the year.) r>w ts ~4 Cartons 3s 6d to 3s 9d. B to 3s 3d; Algerian, 3s 6d to Sd,’" DUns (dark heavy) 4s 3d to 4s 6s to 6s Bd. Italian os to 6s Sd. Cocksfoot—7d to Sd. wlutd Clover—la 8d to 2s 3d. - Bed Clover—lQd to Is 2d. Fartadge Peas—Up to 7s. gaff—l£s 10s to £5 15s. Wlatoes-Prompt £3 10s to £3 15s; aua&QQe" £4; v Onions—£7 (sacks extra). /AUSTRALIAN SUGAR AGREEMENT from Brisbane state m A r t l? g * Premier has signed. S?,? e hsdf .°f the state Government of a fresh agreement cover--01 five Tears under -which rS?™? 01 s ?,? ac l3 re to be sold to the M™“owealtb.' The agreement covers au states and the prices named below citipc° T? pe . rate hi all the principal he j5-i nland towns freights will p-.-® a udition, according to distance. for 1A grade sugar, as well as and treacle, are fixed at „ 9., ton -. Mhl white sugar and quality mill grades, for ordinary f. ? e ’ be £3O a ton and to manuzlpveis £29. 8s a ton. semination of the new agreetw ■ ,? ws that prices are equal to ruling in Australia for some time. f,^2 iS hal)an sugar oroducers have also that the British Ministry . JL will take 500.000 tons of wwnsiand raw sugar out of the 1940 London metals market ■ LONDON, April 22. 18 quoted at 21] d an ounce shwdard. and 22 15-16 d fine. £252 15s buyere ■ pwt leflers: forward, £247 buy-*-441 5s sellers.

STOCK EXCHANGE BUSINESS MARKETS HAVE ANOTHEI QUIET DAY MOST PRICES FIRM AT LATE RATES Share markets continued quiet bu firm on call yesterday. Dealings wer again restricted to a lew stocks. National Bank of New Zealand wer easier with sellers and business at 46: Buyers of New Zealand Refrigeratin (10s paid) raised their bids to 9s 11c but sellers wanted 10s 4d. Kaiapc V’oollens were fractionally weakei i ’Hh dealings at 15s Id, 15s. and 14 lid. and further sellers at 15s. buyer at 14s sd. Buyers of Alloy Steel (N.Z.) raise their bids to 31s 3d. but sellers wer reticent. Beath and Company hai dealings at 16s, market closing 15s 9< buyers, 16s 6d sellers. Simpson an< Williams were firmer with buyers a 335. Other stocks were firm at lab rates, LISTED STOCKS Sales on 'Change £ s. d. 400 Kaiapoi Woollens (17s paid) .. .. 0 15 1 0 15 0 0 14 11 203 Beath and Co. (2) '0 IB 0 Sales Reported IQO Natl. Bank of N.Z- -. ,2 6 0 LATEST QUOTATIONS N.Z. Govt. Debentures Buyers. Sellers £ s, d. £ s d 3] p.c. Ins., 1953-57 .. 100 10 0 4 p.c. Ins., 1940-43 .. 101 5 0 102 0 C 4 p.c. Ins., 30/11/48 .. 4 p.c. Ins.. 1946-49 .. 103 0 0 4 p.c. Ins.. 1952-55 .. 4 p.c. Bonds. 1949 ..103 0 0 104 10 0 Other Debentures Booth, Macdonald. 5 p.e., 1/6/47 .. ..(9 9 0 Pyne, Gould. Guinness, Ist debentures .. 100 0 0 Banks National of N.Z. (£2 10s paid) .. .. New Zealand (£1) . . 2 3 6 2 4 0 N.Z. (mort. shares, £1) 19 0 insurance Natl, (cum div., 7s pd) 0 19 6 1 0 0 Loan and Agency Invincible Build. (£5) Mutual Benefit (£10) 13 10 0 N.Z Guar. Corpn. (3s) ..—. 0 3 9 United Building (£1) 1 1 3 Wright, Stephenson (pf., £1) ~ .. 0 18 8 Frozen Meat Cantby- (£7 10s paid) 10 0 0 N.Z. Befrig. (£1 paid) 10 9 NJZ. Refrig. (10s paid) 0 9 II 0 10 4 Woollens Bonds Hosiery (£1) ISO Kaiapoi (17s paid) .. 0 14 5 0 15 0 Kaiapoi (7s paid) .. 0 3 4 0 5 7 Kaiapoi ((.ref., 17s) .. 0 17 6 Manawatu (£1) .. 0 18 6 1 2 0 Mosgiel (cum div., £4 paid) .. .. 11 0 0 Oaraaru (£1) .. Timaru ( £1) .. 0 9 6 Coal Taupirl (£1) .. ..116 Westport (10s) .. 15 0 18 0 Westport-Stockton (10s) 0 2 8 0 2 10 Westport-Stockton (pi., Q 3 0 _ Gas Christchurch C£l) .. 1 10 0 Breweries Ballins (15s paid) .. 0 12 7 0 13 2 New Zealand (£1) .. 1 19 0 Ward (in liqdn.) .. 0 0 9 0 1 9 Miscellaneous ARoy Steel (N.Z.) (£1) ill 3 Andersens (Ist pref., £1) .. .. ■ 0 18 6 Beath and’Co. (£1) .. 0 15 } 016,6 Booth Macdonald (pf., £1) .. .. 0 3 3 Consolld. Brick (£1) . . 0 9 6 - Dom. Builders, (10s)'.. 0 5 Q Donaghy Rope (£1) .. 2 13 - 0 D.I.C. (pref., .£1) - .. 12 6 D.X.C. (10s paid) .. 0 12 3 Greater Crystal (£1) .. 0 13 0 0 15 6 Hay’s. Ltd. '<£ll .. IXO Hay’s. -Ltd. (cont., 15s „ paid) ' .. ~ 0 15 6 0 17 0 Mason,' Struthers (£1 , ■ paid) .. . - 0 la 0 Mason, Struthers (14s paid) .. •• 0 » 6 Mason, Struthers (10s • _ „ paid) . - .. 0 6 0 M. Manuiact. (ss) .. 0 5 9 0 6 1 Moturoa Ofl, (Ss) .. National Electric (£1) , N. Drug Co. (£2) .. 4 3 0 NJZ. . Farmers' Co-op. _ „ - (A pref.. £4) 2XO N.2. Farmers’ Co-op. ( <44 p.c. Stock, 1950, . £100) .. .. 90-10 0 N.Z. Farmers’ Co-op. (4i p.c. Stock, 1955, „„ „ „ £100) .. •• N.Z. Newspapers (16/8) 17 3 N.Z. Paper Mills (£1) 1 11 0 Peters Ice Cream (£1) 0 19 0 Quill. - Morris (1936) (£1) -• -.110 Simpson and Williams : (£1) ... .. 1 13 0 N.Z. Waning Arahura (£1) .. 1 19 6 Argo (Is) .. .. 0 0 8 Barrytown (£1) .. 126 176 Grey River (10s) .. 018 0 0 18 6 Maori Gold (Is) .. 0 0 8 Mossy Creek (Is) .. 0 0 8i 0 1 3 Nemona (Is) .. 0 0 7 New River (Is) .. Ngahere (£1) .. Worksop Extend (Is) 0 0 5 0 0 6 UNLISTED STOCKS All transactions in stocks quoted in this section - are subject to special brokerage and are not quoted on the official -list: — Buyers.- Sellers 6 s. d. £ s. d Assoc,- Gold Dredges (3s paid) .. .. 0 12 6 0 IS 3 British ' Developments 2 14 0 Carbonic Ice .. 17 6 Lange’s Mobile Gas .. 0 9 0 Otago and Southland Finance (5s paid) .. 0 2 0 Paparoa Coal .. 0 7 0 Taramakau (5s paid) 0 8 9 Snowy River .. 0 4 6 AUCKLAND Sales £ s. d. N.Z. Govt. Bonds, 4 per cent., 15/2/43-46 .. .. 103 5 0 N.2. Govt. Bonds, 4 per cent., 15/4/46-49 - .. .. 103 5 0 N.Z. Govt. Stock, 3] per cent., 15/1/53-57 .. .. 100 10 0 N.Z. Govt. Stock, 4 per cent.. 15/6/52-55 .. 106 0 0 N.Z Govt. Stock, 4 per cent.. . 31/5/54-58 .. * .. 106 17 6 National Bank of N.Z. .. 2 5 9 Bank of New Zealand (late sale) 2 3 10 N.Z. Insurance (late sale) ~ 3 5 3 Northern Roller Mills (ord.) . . 1 0 3 (2) 103 Wilson’s Cement .. ..103 WELLINGTON Sales £ s. d. NJZ. Govt- 3] p.c. Stock, 1957 (2) 100 10 0 Macduffs (ord.) .. .. 0 7 3 (Above late Monday). N.Z. Govt. 31 p.c. Stock, 1957 ~ 100 10 0 Wellington Trust Loan .. 5 2 6 Macduff® (ord.) .. .. 0 7 3 National Electric .. .. 0 18 0 NJ!. Govt. 4 px. Stock. 1952 .. 106 2 6 DUNEDIN Sales £ s. d. National Insurance (2) o is g N.Z. Govt, 4 p-c- Stock, 1949-52 105 15 0 MELBOURNE Sales „ _ , „ ■ £ s. d. Comm. Bank of Australia .. 0 IS 2 Dunlop Perdriau .. 0 19 6 G. J. Coles .. .. ~'399 Associated Newspapers .. o 17 7 Mount Lyell .. .. .. 1 10 6 Loloma ~ „ .. 1 12 6

THE INCOME TAX ACT

EFFECTS OF RECENT AMENDMENTS ADDRESS TO SOCIETY OF ACCOUNTANTS Sections of the Land and Income Tax Amendment Act, 1939, which make the greatest changes in the existing law, were explained by Mr W. Copeland, A.R.A.N.Z., Inspector of the Land , and Income Tax Department, in an ’ address to the Canterbury branch of the New Zealand Society of Accountant. last evening. The particular sec- ; tions discussed were, section 13 deal- . ing with aggregation of incomes of hus- , band and wile; section 16, dealing with ’ valuation of trading stock, and section • 23, proprietary companies. Mr J. H. Pickles (chairman) presided. • Section 13 did not operate unless the ! husband and wife were living together, as explained by sub-section 2. and un- , less the incomes of each exceeded £2OO , Mr Copeland said. However, the obi ject of the whole section was appari ently to prevent evasion by charging i tax on the total income at the rate . applicable to that income. ; Valuation of trading stock by section 16 had to be taken into account at the beginning and at the end of each income year to ascertain whether the taxpayer had derived assessable income. Naturally the value at the beginning of any income year must be the same as at the end of the preceding year. The basis of valuation would be, at the option of the taxpayer, its cost, its market selling value, or the price at which it could be replaced. The value as at March 31, 1939. would be the sum accepted by the Commissioner of Taxes for the purpose of computing the taxpayer’s assessable income for the year ending on that date. By this means any secret reserve in stock would be brought to light. Proprietary Companies The income derived by a proprietary company was deemed to be income derived by the shareholders, and was. therefore, to be included with the other income of the shareholders, said Mr Copeland, dealing with section 23. However, the section did not annly. first, unless the company was controlled by not more than four persons holding more than one half of the shares or voting power, and second, unless the shareholder (and his wife) was entitled to not less than one-fifth of the total income of the company. The company and the shareholder would make returns in the usual manner and if the commissioner deemed the company a proprietary company he would issue an amended assessment to the shareholder. Mr Copeland explained the amendments about extending the classes of non-assessable income and the meaning of dividends. He also pointed out that assessable income now included profits from the use or occupation of any land irrespective of the unimproved value, while debts remitted were now to be taken into account in computing taxpayers’ incomes. Questions were answered by Mr Copeland at the end of his address and many took advantage of the opportunity to have special points explained. COMPANY NEWS KAITANGATA COAL fTHE PRESS Special Service.! DUNEDIN. April 23. The report to be presented at the annual meeting of the. Kaitangata Coal Company states that the result ' of operations for the .year has been most gratifying. The mine continues to produce first-class coal and supplies in sight would be ample for some years to come. Confidence was felt that trade could be maintained.' •; . ; After provision for depreciation, income tax. and Social Security tax. there remained a balance In the profit and loss ■ appropriation account of £B6SO and the directors recommend that this should be applied by paying a dividend of 2s 6d a share (absorbing £7693) and by carrying £717 forward. DUNEDIN RABBITSKIN SALE KEEN COMPETITION FOR ALL GRADES fTHE PRESS Special Service.] DUNEDIN. April 23. As to-day’s rabbitskin sale had not been included in the official list of sales originally, the offering of 34 tons must be considered a particularly heavy one. Competition continued keen for all grades, the only noticeable easing being for racks, which, however,: declined only Id. Other grades were firm to slightly dearer, and a few small parcels of incoming winters realised as much as 68Jd. Following is the official range of prices:—Small, 18d to 20] d per lb: runners. 31 Jd to 35d; light racks, 41d to 42] d; prime raczks, 38d to 40d; summer bucks, 26d to 28d; summer does. 26d to 28d; dawny autumns. 40id to 42] d; first early autumns, 47] d to 52d; first late autumns, 59d to 61d; first incomings. 50d to Said: second incomings, 60d to 64d; first milky, 35d to 353 d; milky, 25id to 27d( summer broken. 26d to 27d; autumn broken, 31d to 32d: summer fawns, SOd to 31d; autumn fawns. 37id to 39] d; summer black. 26d to 28d; autumn black,' 32] d to ' 36d; first hareskins, to 20d; hareskins, 16] d to 163 d; .horsehair, 24d. to 27d; first ferrets. 2s to 4s 2d each. Tine next sale is scheduled for May 7. LOSS OF SCANDINAVIAN MARKETS EFFECT ON BUSINESS AT BRADFORD LONDON, April 22. At Bradford the loss of Scandinavian markets is resulting in a temporary shortage of work for some spinners and has also reduced the output of yarns. Prices are unchanged. The Wool Control is granting facilities for increased export of noilr* There is also a well-maintained export trade in merino tops. Output of crossbred sorts is readiy absorbed. SYDNEY The Sydney share market showed further strength yesterday on limited dealtogs, . Morning Sales £ s. d. Comm; Bank of Australia .. 015 li Bank of New South Wales .. 27 13 0 Tooths .. ~ .. 2 12 0 Australian Gas (A) .. .. 6IS 0 Associated Newspapers .10 13 6' British Tobacco .. .. 2 7 3. Broken Hill Pty. .. .. 2 6 0 Colonial Sugar . . .. 52 15 0 Afternoon Sates Bank of New South Wales .. 27 15 0 Comm. Banking of Sydney .. B 2 0 Colonial Sugar - ‘ . .. 52 12 6 Woolworths ~ ~ ... 10 3 Aust, Consblid. Industries .. 116 6 Morts Dock .... .. 017 0 W. Atkins .. .. ~ 13 6 Sargents ~ ~ ■ .. ■ l a s John McGrath .. .. ; .. 116 9 Mauri Bros. .. .. 3 6 0 Broken Hill Pty, ■ . . 2 & 9 Kanleri .. ~ ..180 Oil Search 1 a a