COMPANY TAXATION

Dominion, Volume 37, Issue 283, 26 August 1944, Page 8

COMPANY TAXATION

Revision Considered Long Overdue “The profit of £5713 earned for the past year represents a return of 5.1)8 percent. oil shareholders’ funds. After allowing for taxation, however, this is reduced to 2.28 per cent.,” said .Mr. AV. Appleton at the annual meeting of the Wellington Investment Trustee and Agency Company yesterday. “It will be rather poor consolation for shareholders to learn,” he continued, “that this year’s net profit is a record for the past .10 years, but that the amount left to them after payment of taxation is the lowest over the same period. Net profit, has, for instance, increased by £950 since 193-S, but. the amount left for shareholders has decreased by almost £l5OO. “The jwsition with regard to taxation as far as our company is concerned is that if an additional £lOO of net profit is earned, the State receives £92/5/- by way of taxation, and £7/15/- would remain for the shareholders. It would appear that we must aim at increasing our profit to £7950, "because if we then make an additional £lOO the shareholders would receive £29/14/6. instead of £7 15/-. as at present. “We all recognize that taxation must necessarily be heavy due to the exigencies of war. but that is all the more reason why the incidence should be just and equitable. Apparently there is some virtue aflaehing to profits over £7950 which does not pertain to those at a lower figure. 1 think if is evident from these figures that n revision <>f the basis of company taxation is long oyer.due-”