PAYMENT OF TAXES

Dominion, Volume 30, Issue 10, 7 October 1936, Page 13

PAYMENT OF TAXES

Position of Non-Resident

Traders

Exemption from taxation of nonresidents trading through agents within the Empire was recommended in a remit passed by the Chambers of Commerce Congress yesterday. The full text of the remit is as follows :—

The congress expresses its earnest hope that the development of Empire trade may be freed from the handicap occasioned by the taxation imposed in certain Empire countries and States upon British non-resi-dents trading through agents in such countries and States. While noting the powers possessed by the United Kingdom to negotiate reciprocal agreements for the mutual elimination of such taxation in certain circumstances, the congress considers, having regard to the time taken to conclude such arrangements, that the Dominion, State or other Governments concerned could assist in a speedier removal of the burden were they to undertake forthwith not to tax British non-residents unless stocks are held by the resident agent, or the agent has a general authority to make contracts on behalf of his principal, or there is a branch or management in the country where the business is transacted.

Sir Albert Atkey (Association of British Chambers of Commerce), moving the remit, said that the proposal arose from the desire of the council during the period between the meetings of the congress to be able to carry on a certain amount of useful, if minor kind of work. The council felt that it was entitled to assume that enthusiasm for helping toward the taxation of the country did not run to the extent of desiring to pay income tax twice over. The remit was designed to avoid that excess of loyalty on the part of certain commercial people. Mr. M. S. Spence (Napier) said that last year the New Zealand Government in a Land and Income Tax Amendment Bill made provision for reciprocal arrangements with other countries as to exemption from income tax of nonresident traders.

The remit was carried unanimously.