DUNEDIN JOCKEY CLUB.

Evening Star, Issue 18698, 29 July 1924, Page 7

DUNEDIN JOCKEY CLUB.

TO THE EDITOB.

Sir, —From his note on the subject in last Saturday’s issue, your contributor “By the Way” hasqmtq misunderstood the question regarding tax which was raised' at the annual meeting. The president and also the treasurer spoke of the heavy taxation, the latter stating that “the taxation had converted a profit into a lose, and had caused many sister clubs to become practically bankrupt. . . ■ As to taxation, the position was that the club collected £21,110 from the paid it to the Government in cash.” The question asked was : “ What effect has this heavy taxation on the revenue of the dub, seeing that the tax is collected from the public?” The treasurer’s reply was : “ That he did not know how to answer that question. ... If the Government tax was £SOO less the club would be £SOO better off.” This does not appear to be the case, aa if the tax on totalisator and dividends was halved the collection would be halved, and the club would still get no portion of the tax. The answer to the question m a very simple one. Except very indirectly the totalisator and dividend taxation has no effect on revenue, provided the totalisator returns bo maintained. _ The club is simply a means of collection for the Government, and the dividend is reduced correspondingly. The heavy taxation complained of is deducted in cash from the dividends paid to the bettors, and, as the treasurer explained, is paid in cash to the Government. The trouble experienced by many of the clubs is entirely due to the fact that in their eagerness to get good acceptances and largo totalisator returns they have given larger stakes than their resources warranted. Of course, it is freely admitted that the Government taxation of the public’s investments is out of all reason.—l am, etc., Tax, Julv 28.