RETURN TO CAPITAL

Evening Star, Issue 18044, 11 August 1922, Page 2

RETURN TO CAPITAL

IOTDEIfCE OP TAXATION. —T~ [Special to the ‘ Star.’] OHRIRTOHUROH, August 10. Mr F. Deverell, secretary of the South Island Refrigerating Companies’ Association, expressed satisfaction with those recommendations of the Taxation Committee which refer to freezing companies. “ A large number of the more important recommendations by the North and South Island Freezing 'Companies’ Associations to the Taxation Committee have been_ included in the committee’s recommendations to the Government,” said. .Mr Deverell. “In so far as they go, the recommendations'tend to rectify a position which was prejudicial not only to the freezing companies, but to the interests of the whole of the primary producers of the dominion. There can be no doubt that the present incidence of taxation is undemocratic, in that it docs nob ensure the taxation of tlie individual according to income, and it ako differentiates in favor of the investor in debentures or shares in small companies. On examination of the published balance-sheet for the year 1921 of twenty New Zealand companies, with a combined paid-up capital of £3,200,000, wo find that there is a net profit for the year equivalent to a return of 3.14 per cent, on the par value of the capital invested.”