BRITISH TRADE

Dominion, Volume 13, Issue 71, 17 December 1919, Page 12

BRITISH TRADE

INTERESTS IN NEW ZEALAND

SUBJECT OF TAXATION

Tho Council of tha Now Zealand Association of British Manufacturers' lioprescntatives and Agents held it -'I"-;- 1111 meeting in Wellington last week, Diero wero present: Messrs. J. I. Morrison (soft goeds), president; J. Ryder (electrical interests), Hopo Gibbous (motor trades), W. L. Meek (paper), F. Meadowcroft (chocolato and cocoa),, Wellington; J. Lang, Dunedin; J. D. Roberts Auckland; H. M'Clelland, Christchurch. Mr. G. O. Sutton was secretary.' ■ The meeting discussed the question ot double income rax. The prcs-.dent outlined the history of the ma Iter msofa as it concerned "'embers. Ho pomte out that so far back as 18b Hie hen New Zealand Commissioner of laxes (Jlr. James M'Gowan) ■ was approached by representatives of leading so l-goods houses, suggesting that English" firms "Puffed in Sew Zealand should bo taxed m somo way. A poll tax was suggested, or as an al'tcrnativo a license !eo charged. The Commissioner gave them a sympatheiic hearing, and eventually the ma.ttci was brought under tho notice of 1 augment, and finally the Commissioner o Taves was empowered to assess the net profit at a fair and reasonable amount in no case to exceed 5 per cent. «|i tlio amount of sales. The late Mr M On«an was a fair-minded and reasonaoleoliieei, and althoneh some of tho agents in New Zealand resented the tox, it was collected with but little friction. Sul-e'iuontly Hie assessments collected were raised to 7* per cent., 10 per cent.. In per cent, and in certain even 20 per cent, on the amount of the sales Litiphoii esnlted, and in one case it was decided by tile Government that the proceedings should be dropped, and for two years no I tax wis collected,- but in 1913 th» amend-merit-to the Act was brought into force making the New Zealand representative provisionally liable for the taxation .imposed .should his principals in, England refuse to pay if. . Ho (tho president) had always hold it to 1)0 perfectly fair that HiU'lish firms trading in New Zealand should pay income tax in tho country in which tho money is earned. But tho unfairness was that English principals represented m New Zealand have to pay also income tax in England rn their gross mcomo derived from trading in New Zealand and elsewhere, as well as in Jinglanci. That was bad enough prior to the war, when tho tax amounted to 2s. Gd. or 3s. in the .£1 on the whole income. But. since tho war, an English firm trading in New Zealand has to pay in this country on net income earned in New Zealand tlio ordinary income tax, tho . special war tax, and tho 50 per cent, super tax, i.e., fis to 7s. Gd. in tho .i'l, and then havq to pay again in England on the same New Zealand income another such amount, making in all anything from 10s. to 15s. in tho .£1 made. Of course, no British firm could so on doing business like that. At a time like tho present, when every British subject felt that all possible effort should bo made to retain and build up tho Imperial overseas trade, it -Jul seem to a business man farcical that such, a system should continue in use. Tho proposal ho ventured to mako was that income- tax should only bo paid i" • country in which tho income was eariyu.j i and in tho case of an English „ Tm ; who had paid their income tax on pr'atitr ; miido in • Now Zealand or Australia, it . should not bo called on to again pay las ,' in England on these increases.. Ho il-. lustratcd a ease of a firm whoso net income was, say, <£IW,OCO, but vlio could show, that it paid income fax in Now Zeilnnd, Australia, South Africa, and Canada on .£IO,OOO each in thoso Dominions, that-is in all .£IO,OOO. Then tho English income tax should bo assessed at .£OO,OOO. This, he held, would bo a fair and just thing. In tho past the various members of the New Zealand Manufacturers' and Agents' Association individually, and other local chambers of commerce had been concerned with the idea of having tho tax removed, than with suggesting a way out of tho difficulty, if we could work in somo way with the chambers of commerce at Home, and with the powers that be in New Zealand to get this matter put on a fair basis something on thoso lines, he thought it would bo perfectly satisfactory'to both the Home principals, and to their representatives here. That heavy taxation will, have to be met, not only in New' Zealand, but mere so in tho Old Country, for a great many years, they all must recognise; but at the same tim'o thev all wished to see that, tho taxation did not press too hnrdly on anyone mid that taxation would not bo tho means of lessening tho enterprise of British manufacturers. Tho council also discussed tho NewZealand Customs tariff, and the need for its revision at the earliest possible nioinent, and the removal of some existing anomalies. . Propaganda work in the direction ot pushing British goods was also discussed. It was decided to apprise British manufacturers through their representatives in New Zealand of the importance of keeping; the New Zealand market supplied with their goods, .even though they might not be able to supply the full requirements iof the market at the present time. The council also resolved to request nil public bodies in New Zealand that in even case preference should be given (all things being equal) to goods of British manufacture in any purchases made, either for municipal trading ventures or for other purposes. The association toc-k. the opportunity at this meeting to express tho opinion that it could look for support from the publio bodies in <; matter of this kind, onco tho position is clearly put before them.