COMPANY DIVIDENDS

Evening Star, Issue 21078, 15 April 1932, Page 13

COMPANY DIVIDENDS

GOVERNMENT MEMBER'S TAX PLAN (From Oor Paelumbhtart Eirowir.] WELLINGTON, April 14. As an alternative to other forms of taxation, Mr A. J. Staliworthy (Eden) suggested to tho Government in the House of Representatives that in framing its financial policy for the current year it might give consideration to tho desirability of imposing a dividend tax. The member stated that some companies were including in their charges to the public a specific amount to cover income tax. A shareholder received from a company, perhaps, his 7 per cent, dividend clear. He did not pay income tax on it, nor was it to be subject to the 20 per cent, deduction under tho National Expenditure Adjustment Bill, as interest rates and rent would be. Mr Stallworthy quoted a case of a person receiving £3,000 a year, mainly from dividends, and said ho paid only £4O a year. In another instance a person with £2,000 a year derived from rents or interest paid approximately £4OO in income tax. a person with £2,500 or more invested in the Bank of New Zealand escaped income tax.