TAX ON SPORTS CLUBS

New Zealand Herald, Volume LXX, Issue 21554, 27 July 1933, Page 10

TAX ON SPORTS CLUBS

PROTEST AGAINST DEMANDS COMBINED ACTION URGED [iJY TKLKGIIAI'H —owx cohrkspondkxt] DUNEDIX. Wednesday Combined action on tho part of sporting bodies throughout the Dominion against income taxation' was urged by delegates at the annual meeting of the Dunedin Bowling Centre. The question was raised by a delegate, who said that as secretary of a club ho had received a circular from tho Commissioner of Taxes stating that the club was liable for income taxation, and he had later received a demand for income tax, based on revenue received from rent. He maintained that such taxation opened a very big question. When Parliament passed the amended Taxation Bill in 1925 it was not intended that sports bodies should bo regarded us incorporated bodies. Why should any sports body, which had for its sole purpose the provision of facilities lor its members to play a game, be liable to income taxY Another delegate said ho had interviewed an inspector of the Income Tax Department, and had been informed that a new form of taxation had just been discovered. It was covered bv tho law, but lie did not think the tax should be retrospective. It was a big question and should be taken up by all the sports bodies in New Zealand. It was no use acting individually. He understood the department was going back only three yours to collect tho tax, though it could go back live years. He regarded that action as a probable coin* promise. He instanced the case of a club which had raised £SOO three years ago, and, now, receiving an income tax demand, did not know where the money would come from to meet it. The question was referred to the executive to act.

It was reported in the Hkhai.d on July L'i that the Income Tax Department was seeking taxes from sports bodies, and dissatisfaction with the department's attitude was then freely ox pressed. No effort has yet been made in Auckland to arrange for a combined protest on the part of those controlling sports, tho several bodies concerned having obeyed the behests of the department to supply tho information sought.