TAXATION INQUIRY

Dominion, Volume 18, Issue 195, 13 May 1924, Page 8

TAXATION INQUIRY

SUGGESTED AMENDMENTS TO SYSTEM.

(By Telegraph.—Press Association.) Auckland, Mav 12.

Giving evidence before the Taxation Commission to-day, Mr. Hudson, president of the Chamber of Commerce, said that tho chamber suggested the following amendments to the land and income tax. system:—(l.) That the present practice of assessing public companies for income tax be amended by being brought into line with that adopted by every other British community, by permitting a deduction of dividends from oompanics’ assessable income and instead include them in that of the individual shareholder; (2) All assessable income should be placed upon the same footing; (3) State and municipal undertaking in competition with private enterprises should be subject to tho same rate of taxation as privately owned ventures. The present practice in regard to company taxation, iio urged, was economically unsound, as it involved immediate appropriation by tho State of a very large proportion of tho surplus profits, which otherwise would become available as working capital. Taxation of tho same profits after passing into the shareholders’ hands would permit payment of better dividends and encourage reinvestments. The chamber further suggested that a closer combing out of small incomes would reveal a further taxable amount and also suggested a reduction of tho exemption from £3OO to £2OO. The chamber protested against the preference allowed to public bodies and other debentures, which was responsible for the diversion of much-needed capital from, productive rural industries to relatively unproductive city amenities.