CRIPPLING FINANCE

Evening Star, Issue 23729, 9 November 1940, Page 6

CRIPPLING FINANCE

At the annual meeting of shareholders of Sharland and Co. Ltd., held on Wednesday last, the chairman explained the effect of recent taxation. “ The balance in profit and loss account is £25,047,” he said. “ The provision for all the various taxes is the large sum of £17,400, which immediately reduces the profit to £7,647. Owing to certain items of expenditure not being deductible for income tax purposes, the rate works out at not 12s OJd in the £, the alleged maximum rate, but approximately 14s, so that the shareholders are left with 6s in the C. In addition to this, the company has to contribute £4,000 to the compulsory war loan, which is in the nature of a capital levy, as the interest is only •18s 6d per cent, over 13 years. An •wcess profit tax apparently is to folira;. No one objects to taxation for trictly war purposes, but the drain is ■vere, and must tend to cripple the mnce of many companies, and will •ve an injurious effect on business nerally.”