EXEMPT FROM TAXATION.

New Zealand Herald, Volume LX, Issue 18317, 6 February 1923, Page 8

EXEMPT FROM TAXATION.

MUNICIPAL UNDERTAKINGS.

'" INJUSTICE TO COMPANIES."

The - exemption from - taxation 'of Government and municipal trading ; undertakings was the subject of comment \ yesterday by ; the chairman . of director* of the Auckland Gas Company, Mr. >: J. H. Upton/ at the annual meeting of the com-

pany. - •'.«.• '.'This' company has never complained of the : taxes it ha*: to ~w," eaidlMr, Upton, "nor of theiir amount. We assume the amount haft relation, to national necessities. But we do complain of "the, serious justice "of Government: and municipal - trading ; undertakings going .: free:* of taxation. ': Xlns -company] is paying Jan excess;: of taxes, and .-. consumers an' excess in the price of gas, in order that the city :, electric - and ; the ■ tramway : under, j taking; may go '• free; ' s I'•do 5 not know | what, :on a 6 per cent., basis, the proper! \ taxes •of >-; those - undertakings should ;■. De,| but it could not be less than fromi £50,000; to £75,000 a year. 'A/Royal ] Commission.V in ' Great Britain lately unequivocally ■ ■:- laid '.? down '£} that/a:? rigidly strict rule should apply; that all trading undertakings of - whatever i kind, whether Government." or municipal, should. be taxed : exactly as ar« private ventures." Referring later; to the incidence volutesation, Mr. ■ Upton ' said there Seas quite an agitation tor a- change 'in the incidence cf ; t'income and land tax. ,It waa 'suggested that the : tax ; should; not; Ire paid by~ companies at ail,: but by individual shareholders;, the oompfly , only to be taxed on any undistributed f; balance of profit. "Taxation is a large question arid its general • principle* 'i perhaps not suitable for % discussion at ; such a meeting as this. One may, - however; be permitted to :' observe that the question' is > one which seriously ; affects shareholders in corporate commercial enterprises such as s ours, and no alteration in the s present i system should ~be made without the most , careful consideration arid: discussion.*' - • / ." \