COMPANY TAXATION

New Zealand Herald, Volume LXXII, Issue 22243, 18 October 1935, Page 7

COMPANY TAXATION

HIGH RATE FOR WAIHI SAVING TO THE MARTHA Speaking at the Waihi liquidation mooting in London recently, LieutenantColonel E. H. L. Bcddington, chairman of directors, said the method of assessing income tax on the mining companies in Now Zealand was one of the reasons for winding up the company and forming now companies, Martha Gold Mining and Waihi Investments. In Now Zealand the taxable balance of a mining company is half the amount paid as dividends during the year, or the whole amount of the aggregate dividends paid by a company since commencing operations, and more than twice the paid capital. The Waihi company has been paying on the higher rate or, with a dividend of 2s a share a year, on a taxable balance of about £IOO,OOO. Assuming the Martha Company maintains that dividend, its taxable balance, at least for some years, will bo only £50,000. This will mean a saving in income tax of about £15,000 sterling a year, or £IB,OOO New Zealand currency. Of course, any lessor dividend will mean a still lower tax. The New Zealand register for Martha Gold Mining and . Waihi Investment shares will be open on Monday. Shareholders will receive the new Bqrip early next week.