SECURITY TAX

New Zealand Herald, Volume LXXVI, Issue 23356, 26 May 1939, Page 14

SECURITY TAX

RACING, CLUBS LIABLE NOT ICE FROM COMMISSIONER CRITICISM OF THE DECISION Notification of the liability of racing and trotting clubs for payments under the Social Security Act has been received bv the New Zealand Racing ami Trotting Conferences from the Commissioner of Taxes. The clubs are classed as companies by the commissioner, who has advised that racing and trotting clubs are liable to pay the social security charge of one shilling in the pound on "income derived from any source." The first instalment of the social security charge was due on May 1 and the racing and trotting clubs arc urged by their governing bodies to pay it before .Tune 1 and so avoid a per cent penalty for late payment. When the matter was referred to Mr. W S. Spence, secretary of the Auckland Racing Club, last evening, he stated that advice of the liability had been received from the conference, but ho had no comment to make. According to tho Herald's correspondent, strong criticism of the commissioner's action was expressed by Mr. J. E. Cuthill, secretary of tho Southland Racing Club and the Invereargill Trotting Club. "It is. difficult to understand," said Mr. Cuthill, "on what grounds racing clubs, the funds of which are held in trust for the furtherance of the sport generally, can be required to contribute to the Social Security Fund, which in no way can directly benefit any member of a club or any person connected with it. "Such action," he said, "places clubs on tho same basis as a company paying dividends to individual shareholders, who may, if the necessity arise, benefit from the Social Security Fund. Surety it is straining the point to. place a racing club 011 the same footing as a 'company." According to tho circular sent out by the Racing Conference, where a club is unable to furnish its declaration of income by May 31 in any year it must furnish a declaration marked "provisional,'' showing income derived for the last preceding year, and pay quarterly instalments of the charge 011 it.