INCOME TAX ALLOWANCES

Press, Volume XCII, Issue 27739, 17 August 1955, Page 12

INCOME TAX ALLOWANCES

AMOUNT PERMITTED AS DEPRECIATION COMPANY’S PROTEST TO PARLIAMENT After complaining about the system of the Commissioner of Inland Revenue in allowing depreciation, Mr C. K. Perry, managing-director of Perrys Shoes, Ltd., told the annual meeting of the Canterbury Manufacturers’ Association on Monday evening that his company was refusing to pay the taxation levied and was claiming a refund of money lodged under objection.

Mr Perry said that a copy of the refusal was being sent to all members of the Cabinet and to every member of Parliament.

Depreciation- on capital equipment should be allowed on a sum equal to the cost of replacing the equipment, Mr. Perry said. The legal position had been investigated, and he was confident that the case his company was presenting was in “good form and in good order.”

Manufacturers, businessmen. and were vitally affected by the depreciation allowance, Mr Perry said, and unless the depreciation allowance was made on the cost of replacement of capital equipment, he predicted that in a few years there would be “a heavy casualty list among industry, commerce, and the farming community.”

Mr Perry said that if his company’s claim for a refund of money was not granted, the company would use the money, which had been lodged under objection, to meet the payment of taxes in the future.

“The Press” regrets that in yesterday’s issue the remarks of Mr C. K Perry, managing-director of Perrys Shoes, Ltd. were attributed in error to Mr T. W. Perry. Mr T. W. Perry has had no connexion with Perrys Shoes, Ltd., since July, 1948.