COMPANIES' TAX BILL.

New Zealand Herald, Volume LXVII, Issue 20651, 25 August 1930, Page 5

COMPANIES' TAX BILL.

NOTHING FOR SHAREHOLDERS EXPERIENCE IN AUSTRALIA. [FROM OCR OWN CORRESPONDENT.] SYDNEY. August 14. In Australia theso hard times it is a common joko for people to sny that tlio whole of their earnings have been mortgaged to tho tax collectors, of whom Micro are so many. It is remarkable that taxpayers can take tho position so philosophically, hut this only goes to emphasise fjio characteristics of Australians, who seem determined to win their w.ay through to a, brighter future. At the samo time it came as a serious blow to tiio shareholders of Mort's Dock and Engineering Company, of Sydney, to learn at tho annual meeting the other day that while tho year's operations had provided no dividend for their investments tho tax gatherers had dono very well indeed out cf the business. Of course, it is [latent lo all that engineering firms, and those who are in any way associated with shipping activities, are having a very lean time, but Mort's shareholders could Hardly have expected such a small return. The chairman of the company, Sir Kelso King, said that in tho year ended June 30 tho company " had only succeeded in earning sufficient to pay the rates to (lie municipal council, the taxation on the previous year's profits to the Commonwealth and State Commonwealth Governments." These totalled £18,868, and only £794 lemaiued to bo added to the balance to bo carried forward. In other words, tho shareholders received no dividend, but tho company paid out. of its gross revenue the following:—Federal taxes, land and income, £4267; Stato taxes, £6344; family endowment tax, £3600; municipal rates, £3173; water rates, £800; Harbour Trust charges, £lB9. Those figures are interesting as giving some idea of what tho big public companies in Australia are up against. The position of Mort's company is not unique, but may be taken as typical. Is it any wonder then that there has been such a united protest .against increased taxation? And yet little hejj has been taken of the protest. In tho provious year Mort's paid £14,341 under tho headings enumerated above.