TAXATION LAW
MINOR AMENDMENTS
COMPANY ASSESSMENTS
Slight alterations in the income tax law as it applies to companies are provided for in the Finance Bill No. 2, which was introduced in the House of Representatives yesterday and read a first time.
One of the clauses relating to goldmining companies ensures that double taxation of these companies is avoided. It is explained that a gold-mining company is taxed not on the profits in the ordinary way but on the dividends declared out of its profits. If a company received a dividend from a subsidiary company, then the profits of the subsidiary'would be taxed twice. The clause enables a parent company to be allowed a credit for the amount of tax paid by the subsidiary on the dividends received by the parent company and paid out again as its dividends.
Another clause is designed to stop companies from transferring share capita] to debenture capital with the object of avoiding taxation. The taxation net as far as proprietary companies are concerned is tightened by another provision in the Bill.
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/EP19400830.2.90
Bibliographic details
Evening Post, Volume CXXX, Issue 53, 30 August 1940, Page 9
Word Count
176TAXATION LAW Evening Post, Volume CXXX, Issue 53, 30 August 1940, Page 9
Using This Item
Stuff Ltd is the copyright owner for the Evening Post. You can reproduce in-copyright material from this newspaper for non-commercial use under a Creative Commons BY-NC-SA 3.0 New Zealand licence. This newspaper is not available for commercial use without the consent of Stuff Ltd. For advice on reproduction of out-of-copyright material from this newspaper, please refer to the Copyright guide.
Log in