HEAVILY TAXED.

Dominion, Volume 3, Issue 823, 23 May 1910, Page 2

HEAVILY TAXED.

INSURANCE IN NEW ZEALAND,

COMPARISON WITH AUSTRALIA.

The heavy taxation to which insurance companies arc subjcct in New Zealand was referred to by a local insuranco manager in conversation with a Dominion representative. The view put forward was that as insurance companies encourage thrift, and their disbursals largely take the piaeo of old age pensions and charitable relief which would otherwise be needed from the State, they should not bo taxed more than is absolutely necessary. It was argued that if tho insurance businesses were not taxed so heavily, those insured would get tho benefit, and a still greater and more general inducement would lie given to people to make a provision for their old age through insurance, which would free them from the possible necessity of dependence on the State. The amount of premiums renewed in life assurance businesses in New Zealand during 190S was £893,430, and now policies were issued representing premiums to the value of £103,659. It was urged that the amount of these premiums represented a saving, by the people which would be greatly to the advantage of the funds of the charitable aid and old age pensions Departments of the Government. Some interesting figures were adduced to show that the taxation of the companies in this Dominion is much heavier than ! in any of the Australian States. Tho annual report of the Australian Mutual Provident Society, which has just been issued, shows that the book value of the society's office premises in New Zealand and New South "Wales respectively' was as follows:— £ New Zealand 100,500 New South AYales '. 95,000 The number of policies issued by tha society in the two States, giving tho comparison of actual business, was as follows: — Now Zealand' 39,193 New South Wales 67,796 Yet tho amount of taxation charged against the society in the two States was as follows:— £i s. d. New Zealand 13,191 6 2 New South Wales ... 3,510 3 8 This enormous disparity is largely accounted for by the heavy land tax in New Zealand. The taxes which make up the two totals are as follow: — NEW ZEALAND. £ s. d. License fee 200 0 0 Income tax 3,528 7 0 Land tax 9,424 3 9 Stamp duty 38 15 5 Total 13,191 6 2 NEW SOUTH WALES. £ s. d. Income tax 3,462 16 10 Land tax 26 18 10 Stamp duty 20 8 0 Total 3,510 3 8 In no other State of Australasia does the society pay more than .one-third of the taxation paid in this Dominion. Ai comparison will be interesting between the New Zealand figures and those of Victoria, where tho society has issued 66,174 policies (New Zealand 39,193), and has premises to the value of £87,500 (New Zealand £100,500). The taxation paid in Victoria is £5205 3s. Id., as compared with tho New Zealand Government's imposition of £13,191 6s. 2d. It was urged that even if the principle of taxing insurance operations could bo defended, the extent to which theso businesses are mulcted in New Zealand is altogether excessive and unjustifiable.