Tax-free dividends

Press, 16 March 1982, Page 22

Tax-free dividends

Sir, — Hoping to provide for adequate financial retirement I have, over 20 years, invested modestly in shares, which despite expert advice has mostly proved disastrous. Reasons: sharemarket is always dicey; much poor company management; many directors neglect shareholders’ interests; continuous savage company and dividend taxation, the latter taxed again in personal returns. “The Press,” March 13, reports the efforts of Freightways, one of a number of well-managed companies endeavouring to protect shareholders’ returns against inflation by making a tax-free distribution from legitimately realised capital profits within the provisions of the Income Tax Act, 1976. The Inland Revenue Department’s lack of approval and the possibility that the Government (to recover a miniscule amount of tax) could alter the Act, clearly indicates the fate of private enterprise in our State-con-trolled declining economy. Elected as defender of private enterprise, Mr Muldoons should show, by his Budget, his good faith. — Yours, etc., D. S. BRYANT. ■ March 14, 1982.