TAXATION PROBLEMS
CONSIDERATION BY COMMERCIAL MEN. Taxation problems will be considered at tho conference of Chambers of Commerce in Wellington at tho end of the present month. The following remits bearing on taxation have been fonvarded :- "(a) That the present system of treating companies as individual taxpayers and of taxing the incomes of companies on ii graduated scale regardless of the fact that tho capital employed in earning that income represents the contributions of numbers of .shareholders, is inflicting injustice on many shareholders in companies, and if continued must restrict Ihe investment of capital in commercial mid industrial enterprises, (b) Thot if graduated or progressive taxation on incomes is continued, the (ax should be levied on incomes from all sources of taxpayers as individuals (inclnding their interest as shareholders in the profits of companies), (c) That tho Government bo requested to consent to the association with officers of the- Land and Income Tax Department of two or threo business men expert in financial matters and in the affaire of companies, with the object in view of the commission 50 constituted investigating the system of land and income taxation in New Zealand, and recommending before next session of Parliament a more equitable system. That in tho event of tho' Government refusing to set up a. commission to report on taxation, the oxecutivo of this association appoint a committee lo inquire 'nto tho taxation system, and to mako recommendations to remove existing anomalies. (It is realised that no investigation could be complete without access to data at present only in possession of tho Tax Department)."—Wellington.) "(a) That tho Government bo recommended, to forthwith appoint, a lioyal Commission to inquire into Iho proper principles nnd incidence of all taxation in New Zealand, and to make recommendations us to all the taxes, whether direct or indirect, to bo levied fnr tho year commencing April 1, 1018. (b) That tho present sliitnlory means of deciding rompulsory liability to conlnbiilo to wjir loans are unsound, in that they baso the liability to contribute on (ho taxes payable for a given year, thus aocontunting any inequity, ' anomaly, disability, or evasion in the taxpayer's luxation for (hat ye.ir, and also bringing too ehorf ii. period under review, while they fail lo consider Iho taxpayer's roipi-. tal and present responsibilities. That contributions to war loans should be in proportion to ability to contribute. This depends on capital and income in relation to thn lender's present responsibilities. That any necessary torn pulsion should lw exercised on the order only I of an authority such na a Judge of the Supremo Court, or a Koynl Comrniss'nn appointed to decide- compulsory liability in eneh case."—(Canterbury.) "That in tho opinion of ill is conferenco the existing system of tiixiiicr the profits of joint stock companies is inequitable and wrong in principle, beoaiiso it may, and in cases it does, com-, pel small .shareholders, who would oilier-, wise be exempt from payment of income tax, to pay (ho full rate. As an alternative, it is suggested Hint such companies should- bn taxed only upon thoir undivided profits, and thnt. i(.dividual shareholders should be accountable for the tax (if nny is pnviible) upcli their dividends."—(Tarnnnki.) "That all profit-earning Dennrhnnnts of tho Slate, in cases where Urn whole of tho profits are not paid into the Consolidated Fund, or where they arc not •ilreadv linblo for income I fix nnd land tnx, should be made linblo for income tax and land tax in thn «>mc manner and under the same conditions i|s privalo businesses are made liable. Jhat nil local authorities should bn made lwbln for income tax nnd land tax jn respect of their commercial activities--(UuUei--bury.) _____
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/DOM19171106.2.72
Bibliographic details
Dominion, Volume 11, Issue 36, 6 November 1917, Page 7
Word Count
611TAXATION PROBLEMS Dominion, Volume 11, Issue 36, 6 November 1917, Page 7
Using This Item
Stuff Ltd is the copyright owner for the Dominion. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.