WAIHI MINE TRANSFER

New Zealand Herald, Volume LXXII, Issue 22192, 20 August 1935, Page 5

WAIHI MINE TRANSFER

NEW MARTHA COMPANY QUESTION OF INCOME TAX INTERESTING POINT RAISED The transfer of the Now Zealand , assets of the Waihi Gold Mining Company, Limited,, to the Martha Gold Mining Company (Waihi), Limited, and the fact that the Waihi Company has now ceased to have ft place of business in New Zealand raise an interesting question regarding the future taxation in New Zealand. Under the Land and Income Tax Act, 1923, "if the commissioner is satisfied that the sole or principal source of the income of a company, whether incorporated in New Zealand or elsewhere, is the business of goldmining or scheelite-mining in New Zealand, the taxablo income derived by that company in any year shall be deemed to be onehalf of the total sum paid as dividends j during that year to the shareholders j of the company." The following proviso ! was added under the Finance Act, 1931 I (No. 4): —"If the aggregate amount of ! tlie dividends paid since tho commencei merit of business by tho company does i not exceed twice the amount of the cap- ! ital paid up in cash, and in every other I case shall be deemed to be the total i sum paid as dividends during that i year." This means, in effect, that companies are assessed on half tho amount i erf dividends distributed each year unless ; tlio total amount of dividends paid ; since operations were started is twice | as much as the paid capital, in which | case the company pays on the full sum of dividends for the year. Tho Waihi Company was the major, i and as far as it is known, the only ! concern affected immediately by tho 1931 amendment. Since 1893, it has paid in dividends over £6,000,000 and its paid capital is only £247,953 10s in 991,814 shares of 5s each. The effect on tho company was at once apparent. In 1931 its total taxeb increased from £28,000 to £71,000 and that high level has been maintained since. The new Martha Company has been formed with exactly the same issued capital as the Waihi Company. If it | is regarded in tho light of a new con- ; corn, it has yet to show its dividentf- ' earning capacity. Tho present Waihi | distribution amounts to £99,181 yearly. |lf that rato is maintained by the j Martha Company, it would be five years before the aggregate distribution reached an amount equal to twice the capital. Consequently, there may be grounds for suggesting that tho income tax payable for some years will be on the lower rate. BUTTER-FAT PAYMENTS FACTORIES IN THE WAIKATO MORRINSVILLE ADVANCE [fbom our own correspondent] HAMILTON, Monday An advance payment of lOd per lb. for finest quality butter-fat supplied during July for tho manufacture of butter will bo made by tho Morrinsville Co-operative Dairy Company, Limited. For tho corresponding month last year payment was at tho rate of 9d per lb. The suppliers of the Norfolk Cooperative Dairy Company, Limited, Motumaoho, will receive an advance at the rate of lOd per lb. butter-fat supplied for cheese-making. Advance payment afc tho rate of 9d per lb. will be made to suppliers of tho Sunny Park Co-operative Dairy Company, Limited, for butter-fat supplied during July for tho manufacture of butter. ALBERTLAND CHEQUE INCREASE IN SUPPLIERS [from our own correspondent] "WELLSFORD, iStonday The Albertland Co-operative Dairy Company, Limited, will make an advance payment to-morrow for cream supplied during July at the rate of lOd per lb. of butter-fat for first grado and at Jd less for second ■ grado cream. About 30, now suppliers are sending cream to tho company's factory at Te Hana this year and it has been found necessary to collect cream every second day_ in order to handle the increased supply. BAY OP ISLANDS COMPANY RECORD YEAR INDICATED The rate of advance payment for August butter-fat was fixed at lOd per lb. at a meeting of the directors of the Bay of Islands Co-operative Dairy Company, Limited. Tho accession of new suppliers and other factors indicate another record year of production. It was announced that the retiring directors, Messrs. W. F. Baldwin, of Ohaoawai, and H. L. Irving, of Taumarero, were returned unopposed. Mr. S. W. Smith, of Pakarnka, was reelected chairman. HIKURANGI DISBURSEMENT 10? D PER LB. FOR SUPERFINE [by telegraph—own correspondent] WHANGAREI, Monday The Hikurangi Dairy Company. Limited, will to-morrow make an advance payment to suppliers at the rate of IOJd per lb. for superfine and lOd per lb. for first grade butter-fat supplied during July. This will absorb C244M. Last season the amount distributed ! for July butter-fat was £2337 when lOd and 9Jd per lb. respectively was advanced. Owing to the recent wet weather the month's supplies are not coming to hand as freely as in previous years, states the company. OPOTIKI DISTRIBUTION JULY SUPPLY AT 10D [jIY TELEGRAPH —OWN COKRESPONPENT] OPOTIKI, Monday The Opotiki Dairy. Association will pay out to-morrow 10d per lb. for July supply and id per II). extra over lour months. Last year's July payment was 10d also, CALL AND DIVIDEND LIST Dividends— ]") un Wairakei—s p.c Aug. 2,1 Bnnk N.S.W.—int.. quarterly, Bs a ahum 28 Christehurch Gns-int 3 p.c. . . Aug! iMder Smith— final. 2J p.c. . . Sep f > Sfnndarrl In*.—final, Ift 3d a ahnre Sop.' 2 Electrolytic Zinc—ord., 5 p.c.; it n P C * J\ a - •, • ■ Bep - 10 I Quddnrt - Parker— int., pref., 3 p.c.; ord., 3J p.e Sep 12 I Broken Hill South—int., is Gd ' 1 and bonus, is a share ~ Sep. 14 Gillespie's Beach—s p.c Sep. 15 [