TAXATION ON CLUBS

Press, Volume XCVIII, Issue 29002, 17 September 1959, Page 4

TAXATION ON CLUBS

Effect Said To Be Crippling The Government’s taxation on racing clubs is having a crippling effect in the opinion of Mr E. D. R. Smith, president of the North Canterbury Racing Club. “The time is long overdue when the Government should take much less and leave the club much more with which to function,’’ says Mr Smith in his annual report which will be presented at the club's annual . meeting on September 23. Mr Smith reports that the profit and loss account for the 14 months showed a loss of £B3 13s 5d after bringing into account not only receipts from all sources including T.A.B. payments but also £5OO. being the last of the club’s deferred maintenance reserve. Mr Smith says it is obvious that the North Canterbury club, in common with most clubs, is now dependant on T.A.B. payments for its existence. “Yet even with those payments and with the i per cent, levy fund for improvements a large number of clubs are cither working at a loss or working at so small a margin of profit as to stop progress,” says the report. “Almost Fantastic” It seemed almost fantastic, says Mr Smith, that although there was an on-course turnover of £23,422 10s on the club's June meeting and a good off-course turnover of £36.943 15s the club should operate at a loss of about £l5OO while the Government was paid £5677 8s 6d as a result of that one meeting being held. Mr Smith claims it is equally wrong that for the year’s operations (without the final payment of deferred maintenance reserve) the club should lose £583 13s 5d while the Government received a total of £11,629 Os 4d as a result entirely of the two meetings being held.

As a direct consequence the club had been compelled to reduce stakes for its forthcoming meeting, to reduce staff, to economise beyond all reasonable limits. “It is unnecessary to elaborate on what the cumulative effects on racing must be if this process is not stopped, and stopped soon. Owners, breeders, trainers, jockeys, and employees of all kinds are all seriously affected. ’ There is the strongest case for an immediate reduction of Government taxation; it would not be too much to suggest that the present Government tax at the rate of 5 per cent. Totalisator Duty and 5 per cent. Dividend Duty should be cut in half at least on the first £50.000 of totalisator turnover, and the 1 per cent. Stakes Duty abolished altogether and the resultant savings left to the club to spend for the benefit of owners and of the public which has provided the money.”