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EFFECT OF THE PROPERTY TAX.

[Special to tue Star.]

INVERCARGILL, Junk 20,

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,'"

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https://paperspast.natlib.govt.nz/newspapers/ESD18890622.2.19

Bibliographic details

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

Word Count
299

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

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