BURDEN OF TAXATION

Manawatu Standard, Volume LXI, Issue 128, 1 May 1941, Page 8

BURDEN OF TAXATION

COMPARISON WITH PROFITS. (Press Assn.) WELLINGTON, May 1. The ’ mounting burden of company taxation was stressed bv the chairman of directors (Mr G. Coleman Phillips), when addressing the annual meeting of the New Zealand Investment, Mortgage and Deposit Company. “Going hack to 1938, when 1 assumed Hie chairmanship, the nett profit that year was £2980, with £B2O sot aside for taxation,” Mr Phillips said. “In the following year the figures were £2890 and £lOl6. In the next year we found £1536 lor taxation and the nett profit was £2651. During each of these years, and for the past ten years, we have added £IOOO to the reserve. This year it is necessary to set aside £2167 'for taxation, leaving us with only £1945 as nett profit. “These figures may not clearly indicate the position and so 1 feel it encumbent on me to explain that the compnny’s profits for the year are only £75 less than last- year’s. The actual profits have not diminished, the reduced balance being the outcome of the staggering load of taxation. There has not been any lessening in our earning capacity; tlms tbc deteriorating effects of increased taxation become apparent.”