TAXATION INQUIRY.

New Zealand Herald, Volume LXI, Issue 18710, 16 May 1924, Page 11

TAXATION INQUIRY.

THE SAWMILLING INDUSTRY.

WASTING ASSETS URGED. [BY TELEGRAPH. —PRESS ASSOCIATION.] WELLINGTON, Thursday. Before the Taxation Commisison today, Mr. A. Seed (secretary of the Dominion Sawmillers' Association) presented a statement which set out that the tax on companies' profits should be levied on shareholders or actual recipients of income derived from such profits as individuals. The association supported the contention that by virtue of there being a large avenue of gilt-edge, tax-free investment (Government loan), and probably a larger avenue of lightly taxed investments (local body loans and company debentures), wealthy investors were able to escape their just contribution to the State, and thus a heavier burden was placed upon companies and those in receipt of "earned" income. Development of the Dominion and the community was retarded by discouraging investment in industries and development activities. Several factors in the present assessment were more severe in their incidence upon the sawmilling industry than upon any other industry. This was due to the fact that sawmillers were dealing with wasting assets, not only in the bush, but, in fact, on every item on which capital was expended, with the result that the industry was suffering a distinct injustice. v The unfairness of the present position would press unequally on different sawmillers. Those who had a comparatively short period to run would feel it most heavily, while to those who had a long period of cutting in sight it would not be nearly so serious. Inclusion of tramways in land valuation would, furthermore, result in some being locally rated on such tramway values, while ' others situated where rating on unimproved value obtained would escape the charge