TAX ALLOWANCES

Press, Volume XCI, Issue 27631, 12 April 1955, Page 18

TAX ALLOWANCES

COMMONWEALTH “GIVING SUBSIDY TO BRITAIN”

As things stood at present, the inhabitants of Commonwealth countries and of the United States might be said to be giving a subsidy to the British taxpayer, said the chairman of the New Zealand and River Plate Land Mortgage Company, Ltd., Sir Denys Lowson, at the annual meeting in London recently. This arose, he said, through the disallowance in Britain of allowances which were readily g.-anted overseas in order to facilitate capital investment in these countries, and the resulting growth of their basic interests.

For instance, in Canada and the United States, substantial allowances were given to mining enterprises toward the initial capital costs, so that today in Canada it was possible for a mining company to operate virtually free of all tax for the first three or three and a half years. Similarly, in Australia the pastoral companies found that the State and Federal Governments would grant them complete tax exemption for improving water facilities, fencing, and clearing the land. All expenditure on these improvements, however, was disallowed by the British revenue authorities and was treated as capital.

"A result of this position has been that in recent years there has been a considerable tendency for companies to move their domiciles from the Mother Country to those countries in which their main activities are situated,” said Sir Denys. “Notwithstanding the existence of a number of double taxation relief agreements, the attitude of the British tax authorities in these matters constitutes a formidable burden, and it is to be hoped that the Chancellor of the Exchequer will take action to lighten it. “Some measure of relief in this matter,” he said, “would do much to stimulate a new flow of investment from Britain to those countries so badly needing development, and to restore our position as one, if not the chief, of the financial centres of the world.” GROCERY NOTES This week has been an exceptionally busy one for both wholesalers and retailers in the grocery trade. Australian Muscatels.—Prices have now been announced for the new season’s muscatel pack. In most cases these are the same as last year. Importers will be able to book the same grades as previously and for delivery in time for the maximum trade, which starts in November. Detergents.—The New Zealand market is steadily following the overseas markets as regards detergents. Both America and Britain have had these washing aids for sale for many years, and it is a highly competitive market. A new detergent powder is now being introduced here. It has already met with a large success overseas. Apple Slices.—This year apple slices in Jib packets will again be on the market. From time to time this line has met with varied success and, of course, its peak demand is when fresh apples are in short supply and are too expenive for general cooking. Half-pound packets this year will retail at 2s lid.

Packet Soup Prices Increase.—The makers of packet soups which have been on the New Zealand market for some years have decided to increase the price of their products, the reason for this being the general improvements of their ingredients. The price in future will be Is a packet. FIRM MARKET FOR N.Z. BUTTER (Special Correspondent N.Z.P.A.) LONDON, April 5. Prices for New Zealand butter have recently been unchanged on the London market, which have been firm with a good movement of supplies from the Dominion, states the trade journal the “Grocer.” Cheese sales are quiet, but at times “there has been a distinctly better feeling.” The journal adds that buyers on the London market have been showing a marked preference for more recently imported New Zealand butter. All Continental supplies have been very scarce and demand for Danish has been far exceeding the quantities available.

New Zealand finest is quoted at 342 s per cwt, with finest unsalted at 350 s to 3525.