DOUBLE INCOME TAX.

New Zealand Herald, Volume LIII, Issue 16205, 15 April 1916, Page 8

DOUBLE INCOME TAX.

MINING COMPANY'S SAVING,

TALISMAN RECONSTRUCTION.

CONTROL IN NEW ZEALAND.

A cibcblab has just been issued to shareholders in the Talisman Consolidated, Limited, placing before them new proposals in regard to the reconstruction of the company and the transfer of the controlling power from London to New Zealand. Owing to tho position with regard to the payment of double income tax, it has been thought advisable to alter the method of carrying on business in such a way, that tho double income tax may bo avoided. The advice of the foremost counsel in England and New Zealand has been sought, and on their recommendation it has been decided to wind up the present company and incorporate a new company in London, with tho same objects and capital as the present .company, but specially providing that the control and management of tho whole of tie operations of the company shall be in New Zealand. It has been suggested that a New Zealand company should be incorporated to take over the assets and manage the affairs of the company, bub the present position is such that it is considered' advisable to cany .out the reconstruction of the company on the basis indicated. By this means the heavy double income tax now # payable by companies carrying on business both in the British Dominions and in the Motherland will be avoided, and the result will be a, great advantage so far as New Zealand shareholders are concerned. It is understood that the New Zealand directors will be the same as have acted as a local board for some time, with the addition of two well-known shareholders holding large interests; thus the company will have directors in New Zealand who will possess toe fullest powers of control over all the operations of the company. The London office will simply assume the duties which tho Auckland office has hitherto undertaken. <

It is stated that the double income tax involves the payment bv the company of many thousands of pounds, and the carrying out of the scheme will probably enable the company to pay another Is per share per annum in dividends. The necessary resolutions will be submitted to an extraordinary general meeting of,shareholders to be held in London on July 26.