TAX BURDEN

Evening Post, Volume CXXII, Issue 71, 21 September 1936, Page 12

TAX BURDEN

ON LOCAL INDUSTRY

Claims that an injustice was being done to companies and shareholders by recent-revision of taxation were made by speakers at the annual meeting of theKaiapoi Woollen Manufacturing Company, Limited, on Friday last. The increase "is a tremendous additional load ... and when land tax is added it seems a most unjust burden," said the chairman of directors (Mr. Arnaud McKellar). He was supported '- by Messrs. W. H. Clark, J. Tait, and T.N. Gibbs. I "I feel it is my duty to make some reference to the increased burden joint stock1, companies are now, asked to carry from the point of view .of taxation," said . Mr. McKellar. , "Before this year the company was-required to pay 4s 6d in the £, plus 30 per cent., which was equivalent to about 5s lOd in the £.: This has always been regarded as a very stiff imposition, and therefore the recent announcement that income tax oh the basis we are called upon to pay has been increased to the substantial figure of 7s 6d is a tremendous additional- load which the company will be called upon to carry in the future. When .land tax is added to this it seems a most unjust burden considering that most shareholders are on a much lower rate of taxation than the rate the company is called upon to pay." Mr. W. H. Clark said he understood that it is estimated that the increased wages bill to the ■ company this year will be between £20,000 and £25,000. This will mean that considerably more business will require to be done to meet this heavy additional charge on the industry, and with five hours in the mills and four hours in the factors' taken off each working week, shareholders must realise that the company is now very heavily handicapped indeed, particularly when it had to compete with overseas productions on the same basis as we were called upon to do before these recent measures were introduced. , , • The report and balance-sheet were adopted and satisfaction at the progress made by the company and at the decision to pay a 5 per cent, dividend 1o ordinary shareholders was expressed. The directors' recommendations that payment of dividends of 5 per cent, on. ordinary shares and 5 per cent, on preference shares be made, were carried, as were those that £6000 be provided for income tax. £1500 for general reserve, and £467 be. carried forward.