TAX ON BONUS SHARES

Northern Advocate, 31 May 1935, Page 9

TAX ON BONUS SHARES

, COLONIAL SUGAR COMPANY. | POSITION OF SHAREHOLDERS. [Per Press Association.-Copyrightl , WELLINGTON, This Day. : For the purposes of ascertaining the exact position of New Zealand shareholders in the Colonial Sugar Refining Company in relation to taxation ■of the recent issue of bopus shares, ; Mr E. Bucholz, president of the Stock ; Exchange Association of New Zeai land, discussed the matter with Mr jG. E. Dowland, Commissioner of j Taxes, 1 Mr Dowland explained that only I that portion of the issue which was I made out of undistributed profits, | namely, one third, was required to be | shown in income tax returns. He i added that in any case such one-third jdid not carry income tax, but was J only used to arrive at the assessment lof the rate at which the tax would be payable. This, Mr Dowland explained, was in accordance with a ruling he had received from the Crown Law Office, but as income assessment notices do not go out until November, if it be later found that these shares are not income they will be omitted from the assessment both from income tax and unemployment tax.