Article image
Article image
Article image
Article image
This article displays in one automatically-generated column. View the full page to see article in its original form.


[Special to tue Star.]


Mr J. Smart, the Home secretary of the Otago and Southland Investment Society, in a letter to the 'Southland News,' dated Edinburgh, 3i'd May, says:—"l have seen your paper of 10th March, and have read with interest a leader pointing out the injurious effect of the property tax upon companies such as this, the object of which is to supply capital for the development of the resources of the colony. You quote from the chairman's address at the last annual meeting a statement to the effect that the sum paid by the company for this tax is equal to 2 per cent, on the paid-up oapital. That is correct, but you add parenthetically : 'At a subsequent stage it transpired that the property tax actually absorbed 2 per cent, of the profits.' The tax paid by the company for its financial year ended on 30th June, 18S8, was L 2.176 Is 3d, while the net profits for the company for the year were L 5,455 17s. The tax is thus equivalent to about 40 per cent, of the net profit, or about 28J per cent, on the profits before deducting the tax paid by the company. The greatest S;rievance of all is that the tax is evied upon borrowed money, as well as the company's capital, while if it were limited to the paid-up capital, or to profits like the income tax in this country, there would not be so much ground for complaint. It will not be disputed that this taxation is oppressive, and unless the tax is modified, the result may be as stated by ono of our shareholders, that the company will be compel led * gracefully to retire from the colony, fairly cut of it,'"

This article text was automatically generated and may include errors. View the full page to see article in its original form.
Permanent link to this item

Bibliographic details

EFFECT OF THE PROPERTY TAX., Issue 7940, 22 June 1889

Word Count

EFFECT OF THE PROPERTY TAX. Issue 7940, 22 June 1889

  1. New formats

    Papers Past now contains more than just newspapers. Use these links to navigate to other kinds of materials.

  2. Hierarchy

    These links will always show you how deep you are in the collection. Click them to get a broader view of the items you're currently viewing.

  3. Search

    Enter names, places, or other keywords that you're curious about here. We'll look for them in the fulltext of millions of articles.

  4. Search

    Browsed to an interesting page? Click here to search within the item you're currently viewing, or start a new search.

  5. Search facets

    Use these buttons to limit your searches to particular dates, titles, and more.

  6. View selection

    Switch between images of the original document and text transcriptions and outlines you can cut and paste.

  7. Tools

    Print, save, zoom in and more.

  8. Explore

    If you'd rather just browse through documents, click here to find titles and issues from particular dates and geographic regions.

  9. Need more help?

    The "Help" link will show you different tips for each page on the site, so click here often as you explore the site.