TAX EXEMPTIONS

New Zealand Herald, Volume LXX, Issue 21503, 29 May 1933, Page 5

TAX EXEMPTIONS

INCOME FROM AUSTRALIA X COMPLICATED PROBLEM A correspondent, "Injustice," raises a vexed question concerning the payment of unemployment emergency tax. He quotes from the instructions on Form U.B. 55. "Income derived elsewhere than from New Zealand is exempt from the emergency unemployment charge if and so far as the Unemployment Board "is satisfied that it is derived from some other country within the British Dominions, and that it is chargeable in that country with a special- tax levied in respe.ct of unemployment," and asks:—"(l) Do dividends from a bank whose headquarters are in Australia, but with branches in New Zealand come under this exemption? Dividends are forwarded from Australia. (2) As the Federal Government levies taxation on dividends forwarded to New Zealand, have 1 any claim for rebate in this Dominion? If not-, these dividends have a three-fold tax. The bank pays, and I have to pay twice. This is not equitable." Taxpayers have not been getting satisfaction concerning this exemption. The usual reply to inquiry is that tho onus is upon the taxpayer to show that any portion of his income has paid unemployment tax elsewhere. That is always difficult, as tho Unemployment Board must well know. Relevant facts are that special taxes in respect of unemployment are levied in New South Wales and Queensland, but not in Victoria. That rules out income from Victoria. The Unemployment Board has further ruled out income from all tho other States except New South Wales on the ground that the exemption can be claimed only when the tax is levied on the dividend, which is the New South Wales method, and cannot be claimed in respect of dividends from a company which has been taxed on its profits before distribution of dividends. The latter is the method adopted in Queensland and somjQ other States.

The Colonial Sugar Refining Company has recently advised its shareholders that the propcjrtion of dividends paid during the past year which was earned in New South Wales and taxed there for unemployment relief is 29.07 per cent. Exemption can be claimed on this.

The current issue of the Accountants' Journal has additional information as follows: —Commercial Banking Company of Sydney, 56.76 per cent of dividends taxed in Australia, therefore exempt; Burns, Philp and Company, Limited, 13.07 per cent exempt; Tooth's Breweries-, 100 per cent exempt. Dividends from the Bank of New South Wales are exempt to the extent of 54 per cent if the shares are on the New South Wales register, but no exemption if on any other register. Dividends from the National Bank of Australasia are similarly treated if on the New South Wales register, but not otherwise.

"Injustice's" questions would seem to refer to dividends from the Commercial Bank of Australia. According to the Accountants' Journal, they get no exemption. Apparently the Unemployment Board's ruling permits of no exemption unless on dividends from companies with a share register in Sydney.

KAURI GUM BOARD REQUEST FOR ABOLITION COLLECTION OF EXPORT LEVY A farther effort to secure the abolition of the Kauri Gum Control Board is to bti made by the executive of the Associated Chambers of Commerce, following a discussion at a meeting in Wellington last Friday. The secretary reported that a letter had been sent to the Minister of Lands advising that despite an announcement by the Government last July that the board had been abolished, the levy on all kauri gum exported was still being collected, and this seemed unjustifiable in view of the abolition of the board. A letter in reply was read from the .Minister of Lands, Hon. E. A. Ransom, who stated that although the board had practically ceased to_ exercise any control over the kauri gum industry, the board had not yet been legally abolished. It was not intended to take any stops in connection with the revocation of the levy on the export of kauri gum until the process of winding up the affairs of the board had been completed. Ifi the circumstances prevailing it was of course difficult to fix an exact time in which the process could he completed. _ The winding up of the board s affairs, the Minister said, had been delayed as tho result of the destruction by fire of its stocks in July last, and the necessity of negotiating the adjustment claims with respect to the insurance proceeds. It would appear as if legislation would bo necessary for the legal abolition of the board, and of the levy, and that legislation would probably bo introduced during next session of Parliament. . , It was decided to investigate tho legal aspect of the position and press for tho abolition of the board.

GOLD AND SILVER QUOTATIONS IN LONDON (Received May 28. 6.35 p.m.) LONDON, May 27 Gold is quoted to-day at £6 2s lOd an oz., compared with .£6 2s 6d yesterday and £6 2s 5d on Thursday. Silver was quoted yesterday at Ibid an oz. spot and 18 9-16 d forward, compared with 18 11-16 d and 183 d on Thursday. RABBITSKIN SALE MORE PROFITABLE PRICES Tho offering of a large catalogue of rabbitskins at the Dunedin snle Inst Thursday is reported by Dulgoty and Compan.v. Limited. There was a good attendance of buyers. The quality of the offerings was improving rapidly and the catalogue included a sprinkling of new season's winter bucks and does. Reports from America during (he last, week showod that n considerable improvement had taken place in nil markets there, apparently due to the inflationary measures taken by tho Government, nnd that was reflected in very keen competition on American account at the Dunedin sale. All grades from late autumns upwlirds showed nil ndvnnce compared with last sale of on an average about 12d per lb, while lower grades were 3d to fid higher. There was a keen demand for winter bucks, which sold at 68d, while early winters brought 53d. Does, which were not wanted for America, sold from 30d to 50d. It was impossible to say whether prices were likely to be maintained. When quantities became heavier there might be n reaction, but, in the meantime trappers would be well advised to send in their skins promptly. Even if there was a setback in prices Inter it appeared that trappers were assured of a profitable season. The following are the prices realised at the saleßunners, to 73d per lb: racks. 9jd: prime, lid; dawny autumns, lod; early, 22Jd: late, t Slid: incoming winters, 44d; early, 52Jd; second winter bucks, 42d : first, 68d; second winter docs, 36d; first, 46a, autumns spotted, 19Jd ; late autumns spotted, 245 c!; incoming winters, Sljd: early. 3rf,d; autumn bucks, 29Jd; incoming 40Jd; summers, 8d; milky. 7d; summer broken, 63d: autumn, 13Jd; incoming broken ifid; summer blacks, s}d; autumn, Hid; autumn fawns, 12d; small, 3d.