INCOME TAX.

Hawera Star, Volume XLV, 26 May 1925, Page 7

INCOME TAX.

ON DAIRY COMPANIES. ABOLITION, URGED. For some time the Taranaki Federation of Dairy Factories have urged the Government to agree to the abolition of the . tax now paid by dairy companies. It was contended that the companies were being formed, not for pro-fit, but for assisting to convert the raw product into a. marketable -article and paying out every penny to suppliers, and l therefore should not pay any - income tax. A. further argument used) was that- owing to the demand for tax the companies were not putting aside any reserves as they should do. The federation urged that this was leading to a weakness in finance, and that factories should be encourgaed to -set aside reasonable reservices as .safeguards for the future. Air. J. R. Corrigan, M.P., wrote on the subject to. the Prime Minister, Sir Francis Bell, and had received a. reply from him stating that liis letter had been receved. and that the matter would be - given further consideration, and that 'in due course a further reply would be sent to him.

Dealing with the same subject, Mr. O'. Hawken, M.P. wrote to- the federation caving that he had often discussed the matter with Cabinet Ministers, He said that the Income Tax Department were opposed to the abolition of the tax. He added that he lioped there might be a chance of getting the tax altered, and if so he would be pleased to assist.