TAXED DIVIDENDS.
When the special Federal income tax on incoijiie from property (rent, interest, dividends, etc.) was introduced, income of companies ' from property was included, arid that part.of dividends attributable to the company's income from property was exempted from the special tax in the hands of shareholders. It was recognised by Parliament that companies with ordinary and preference capital -would be in a predicament, because, the preference shares having a fixed rate of dividend, the ■whoje of the special tax on' income from" property would have to be borne by ordinary shareholders, and preference shareholders would evade the special tax. To overcome this difficulty companies were given authority under Federal law to deduct the special tax from dividends payable to preference shareholders. Some Australian companies, in which thcie are New Zealand Rhareholdcr&, have already announced their intention to deduct the tax from preference dividends. The arrangement seems to be fair, but whether it is not ultra vires has' yet to1 be proved.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/EP19311117.2.85.15
Bibliographic details
Evening Post, Volume CXII, Issue 120, 17 November 1931, Page 12
Word Count
162
TAXED DIVIDENDS.
Evening Post, Volume CXII, Issue 120, 17 November 1931, Page 12
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