REFUND OBTAINABLE

Dominion, Volume 36, Issue 195, 14 May 1943, Page 4

REFUND OBTAINABLE

Tax On Certain Company Dividends Dividends received from certain companies on which social and national security charges have already been paid are not now subject to these charges Advice to this effect has been received by the Stock Exchange Association of New Zealand from the Commissioner of Taxes, and members have been informed by circular. The companies are defined as those “trading in New Zealand,” and whether they may have made a profit or a loss, resulting in the payment or not of the social and national security charges for any particular year, does not alter the viewpoint from which the Commissioner of Taxes regards them. Jinny other overseas companies whose shares are held in New Zealand were brought by the Stock Exchange Association before the Commissioner, but. as they do not “trade in New Zealand” they were not required to meet the social and national security charges, and consequently the shareholder himself is liable on the dividends he receives from them. Dividends free from social and national security taxes are those received from the following companies:—Amalgamated Wireless. Australian Iron and Steel preference. Bank of New South Wales, Broken Hill Proprietary, Burns, Philp and Co., Commercial Bank of Australia, Colonial Sugar Co.. Electrolytic Zinc, ordinary and preference, Gordon and Gotch, Huddart Parker. Hume Pipe (Aust.), Kauri Timber, Mauri Bros, and Thompson, Queensland Insurance, Union Bank of Australia. Bank of Australasia. Commercial Bank. The president of the Stock Exchange Association has advised members that “this exemption operates, not only for the income year just ended, but also for the income year ended Jlarch 31, 1942. Any shareholder who has paid the above charges for the 1942 year can obtain a refund by applying to the Commissioner, giving the names of any of the companies in the above list. No special form of application for refund is required; a letter with details of the claim is sufficient.” . , , , . lie has also advised members that in the May issue of “The Economist and Taxpayer,” an article written by a taxation expert would appear setting out the history of the legislation governing the question of dividends, and making lhe position quite clear in reference to the period over which refund might be claim ed. Any other “free” companies that miiy be found on closer search will also lie shown in this article