BRITISH MEAT TRADE.

Manawatu Herald, Volume XLI, Issue 1983, 29 May 1919, Page 4

BRITISH MEAT TRADE.

FIRMS DRIVEN ABROAD BY TAXATION. At the annual meeting of Nelson Brothers (Limited) recently, the chairman reported that the Board had just sold the company's freezing works in New Zealand, and the stores and organisation of the Colonial Consignment and Distributed Company (Limited).

The effect of this sale, we understand (says the London Times), will be that the business involved will no longer be directed from this country, and that the Exchequer will collect no further taxation on the profits. Now that the taxation has reached so high a Jigure in this country, it is urged, a British company engaged in the meat industry on a world scale is placed at an impossible disadvantage compared with great foreign competitors, and firms wholly British in origin and interest have been compelled to transfer their organisation and capital abroad. It is such a firm whieh has bought up the assets disposed of by Nelson Brothers. The situation was summed up by Air Harold Nelson, who pointed out to his shareholders that the foreigner could deal in our markets without ta.vation, whereas the British registered company was taxed both by the Imperial and the colonial Governments. The American Meat Trust pays American taxes on the business the companies do in the United States, but if they turn their business outside the States into foreign companies and do not take (he profits to the United States they are free from taxation by their own Government, although the business is controlled from the United States. The net result, we are informed, is that on the greater portion of ihe business with England from the works outside the United Slates, (ho Trust companies pay no British taxation whatever, and on the remainder they pay only a trilling sum compared with what a British company would have to pay. On the other hand, a British company shipping meat to England is subject to income tax at the rate of (is in (lie pound, super-(ax and excess profits tax.