TAX ON BANKS

Manawatu Standard, Volume LIX, Issue 161, 9 June 1939, Page 9

TAX ON BANKS

REVISION URGED. COMMENT BY AUTHORITY. WELLINGTON. Juno 7. Early this year the banks in New Zealand between them paid some 31380,000 income tax because in the M'evjous taxation year they bad belli in average of JtG7.OUO.OOO from the hi blic m the way of deposits, said .Mr L C. Addison, chairman of the Assuan toil Banks, speaking at the annual iiuokti concert of the Dank Officers’ Guild in Wellington this evening. The banks between them paid a 'nrtlicr £290,000 income tax because diev had made advances to the public ivernging £51.000,000, said Mr Addison. They also paid substantial imounts on other assets and luibili,ics, including—and this was the ■ruellest rub of all—just on £50,001) jn the £8.750,000 which was the averige they had maintained at the Reserve flank upon which tle|josits they Jiil not receive any interest. “I will .just leave those figures to jinlc in.” added Mr Addison, “but I should like to make it very clear that I am not referring particularly to the present Government. It is only fair to emphasise that the review ot this antiquated system of taxation, which was conceived under absolutely diflerent circumstances from those now obtaining—has been ‘shelved’ by various previous Governments. “I can only suppose that this shelving has been on the ground that _ it would be “bad politics’ to bo associated with a change, which to us seems onlv justice and coinmonscnsc.” “'[ 'think.” said Mr Addison, “you can confidently assume that the trading hanks have _ already rendered special service and intend to render further special service in co-operating with others in assisting to meet the special situation. The banks arc doing that despito the fact that their ability t , assist has to a considerable extent boon limited by happenings in recent ‘ “When T say the banks have rendered special service and intend to render further special service i migut add that is not in the nature pi lip service.’ but is by way ol throwing in certain of our own free resources in an endeavour to assist all interests.