DOUBLE TAXATION

Nelson Evening Mail, Volume LVI, 5 July 1923, Page 5

DOUBLE TAXATION

VIEWS OF SHIP OWNERS

(By Electric Telegraph—Copyright). (Australia?* -Y N.Z. Cable Association)

LONDON. Julv 3.

With reference to Sir W r . JoynsonHicks’s new clause in the Finance Bill relating to shipowners’ double income tax. th? shipowners express the opinion that the new clause is the first result of a world-wide movement in favour of the abolition of all double taxation on the ground that such taxat ion seriously restricts the development of trade. The subject is being examined by the League of Nation’s Committee and by international Chambers of Commerce. The new clause is primarily due to the United States’ offer not to tax British ships if Britain does not tax American owned ships. It is learned that the subject may be raised at the Imperial Economic Conference in the hope of making arrangements with the Dominions to avoid the present system. It is admitted that the position of the Dominions is different, none having Dominion registered ships trading to Britain except the Commonwealth line, which is a State property and does not pay taxation either in Britain or Australia. Nevertheless, owners express the opinion that it will ultimately be to the advantage of the Dominions, which are chiefly primary produce exporters to assist in removing the burden of some of the taxation on shipping because only by reducing running costs can a reduction of fares, and freights be made possible at the present time. Shipowners engaged in the Australian trade complain of unfair Australian taxation under which they have to pay both a Federal and a State tax on an assumed profit on their gross takings whether they are making that profit or not. The owners suggest that, though a reciprocal agreement similar to the Anglo-American one is impossible in the case of Australia, it*would eventually benefit Australian producers if Australia either did not tax British shipowners at all or received from the British Government a portion of the taxation which the owners paid to the latter. It is argued that, if the .Dominions abandoned taxation on British, lines, they would have an irresistible claim for a reduction of fares and freights which are eventually paid by the Dominion peoples. ‘The shipowners believe that an ideal system of removing these hampering restrictions on trade would he one under which all shipowners would he taxed only in the country of the ship's registration.