FILMS TAXED OUT

Evening Post, Volume CX, Issue 68, 17 September 1930, Page 13

FILMS TAXED OUT

QUESTION OF PRINCIPLE

"I am very pleased indeed that the Chamber of Commerce intonds to have an inquiry into the matter now before the public—the question of the taxation and of the trailing of films in New Zealand," said Sir Victor Wilson, prcsi- j dent of the Film Distributors' Association, to-day. "Personally I do not think that the trading conditions under which the films work in Now Zealand are sufficiently known. May I state J them? . ' "Firstly, we pay Id duty, plus a surcharge, which is a revenue duty and not a protective duty, as there is no industry in the Dominion, and we feel that, for the necessary money for the good government of the country, this method should have been used, as is tho general principle throughout the world. Next, we paid the duty which gives us a right to trade in the Dominion. Next, on our profit and loss account of trading within the Dominion, an arbitrary amount of 12* per cent, of tho takings constitutes the taxable amount under the company tax. I am sure that most of my Chamber of Commerce friends will .-calise that this is a very heavy tax indeed, and was quite a novelty in principle, but we have paid it, and when I tell them that on investigation by one of your leading firms of auditors, taking twelve of our leading companies, it was found that, the profit in relation to turnover was less than 5 per cent., and that the same companies pay on a basis of 12& per cent., it should convey "something to those who were anxious to .get at the facts.

"Then we have the latest legislation. First the Government budgeted for 530,000, and again our auditors, on the most careful investigationj found that the tax would yield £88,500. This, again, surely gives every justification for very careful investigation. Then we come to the principle involved, and I think that this is the most serious aspect for the Chamber of Commerce to consider. Contravention of principle, irrespective of almost any conditions, must be repugnant to anybody who is capable of forming an opinion.

"The position is that the moneys that go out of the country, which are the property of the producers, 25 per cent, of the total, after allowing for the deduction of the -above stated 12A per cent., and working expenses within the country, running .the films, etc., is taken without any consideration whatever as to the cost of the product imported, and as to whether the company on the other side of the world is making a profit or a loss. This, in my opinion, cannot be justified under any conditions whatsoever.

"Thus the industry lias asked for a very full investigation, and some exception is taken to -the stand that we cannot trade here. We cannot trade for the Teasona above stated, and no country can ask any body of men to trade if it cannot pay its way. Surely this is sufficient reason for the people in the industry having taken the stand that they have, which has indeed been forced upon them, much as we regret it, and I personally still believe when the Government has completed its own investigations that, guided by the principles of justice and fair play, the matter will be put in order. 1 should bo only too delighted to meet the committee of the Chamber of Commerce and render if every possible assistance, and I welcome' the action they, have taken. They should be guided by the facts. I know that their judgment on the matter will play a very important part with public opinion, and that is what wo desire."