SHAKESPEAREAN COMPANY

Press, Volume LXXXIX, Issue 27010, 9 April 1953, Page 10

SHAKESPEAREAN COMPANY

New Zealand Income To Be Taxed EFFECT ON POSSIBILITY OF RETURN VISIT * (New Zealand Press Association) WELLINGTON, April 8. In addition to paying full amusement tax on the New Zealand tour (probably £8000) the Stratford-on-Avon Shakespeare Memorial Theatre Company has been advised that it is liable to pay upwards of £5OOO in incometax. Describing this today to the Wellington Shakespeare Society as “a second blow on the cheek,” Mr Anthony Quayle, director of the company, said he felt certain that the decision, if confirmed by the Government, would seriously influence the governors of the Memorial Theatre in sending the company on a return visit to New Zealand. It would exercise a most profound influence on. other first-class English non-profit-making companies which were considering making the risky and difficult tour to New Zealand. Mr Quayle said that the Memorial Theatre was a strictly non-profit-mak-ing company, incorporated by Royal charter under the hand of King George V. Its charter specifically directed that the company do its utmost to spread a love of William Shakespeare and his works, “not only in Britain but in the Dominions overseas.

Although the company had never received a penny of aid from the British Government, it had never paid amusement tax or income tax, Mr Quayle said. In Australia it would pay neither tax, and even in the United States, where it would soon tour, it would be eligible for the remission of taxes, according to advice received there. The company had had a wonderful reception in New Zealand* which, he said, was beyond his wildest dreams. “I have said we will come back, and we even got down to discussing dates,” continued Mr Quayle. “Now we have come up against it. We have been advised that we are liable to pay a large sum in income tax. In all, for the pleasure of coming to New Zealand we will have to pay something like £13,000 in both taxes unless negotiations we are now having prove fruitful.”

When the New Zealand Players’ Company met in a hut in the Winter Show Grounds, Wellington, this morning, for its first rehearsal, it heard from its producer (Mr Richard Carhpion) that the Government had agreed to exempt the company from amusement tax. Minister’s Comment The Memorial Theatre Company was clearly liable under the legislation which had been in force for many years to pay income taxation on profits made in New Zealand, said the Associate Minister of Finance (Mr C. M. Bowden), tonight. The law’ he added, did not give him as Minister any discretionary powers, and advice of the company’s liability was given to Mr Hume, general manager of the company at .Stratford-on-Avon, last November.

Last week, said Mr Bowden, representations were made by the New Zealand tour manager (Mr P. Donnell) for some concession because of the educational nature of the production tnd those representations were now under consideration. “I am sure that the Commissioner of Inland Revenue will afford this company the most favourable basis of assessment within the law,” said Mr Bowden.

Amusement tax was included in the admission charge. It was paid, not by the company, but by those who attended the performances. “The company apparently wishes to retain, as part of its own profit, the amusement tax paid by patrons,” said the Minister, “and, moreover, desires that these profits be free of all taxation in New Zealand.” The company was being treated in the same manner as other theatrical companies of the .same nature which had visited New Zealand, added the Minister. No other visiting company had received any concessions which were being denied to the Shakespeare Memorial Theatre Company. “From the figures quoted in .the press tonight, I note with pleasure that the company has had a financially profitable New Zealand tour,” said Mr Bowden. “Even after payment of taxation it appears that the company will be able to take a fairly substantial amount out of the country, and there is no difficulty about remitting the profits out of New Zealand. “I will be glad to meet Mr Quayle or anyone from the company at any time and discuss this matter of taxatioh further,” he said.