DUNEDIN CHAMBER OF COMMERCE.

Otago Daily Times, Issue 17092, 25 August 1917, Page 5

DUNEDIN CHAMBER OF COMMERCE.

A meeting of the committee of the Dunedia Chamber ol Commerce was hold yesterday afternoon. Mr W. Gow presided. The Otago Expansion League wrote asking the council to appoint two representatives to act for the chamber on the Special Committee being set up to deal with land tenures in Central Otago.—The vioe-prosidont (Mr J. B. Waters) and Mr J. Lethbridgo were appointed. The Chairman stated that tho Wellington Chamber had writton forwarding resolutions passed as to taxation proposals, and it asked tho Dunedin Chamber to send something in the nature of a resolution to tho Associated Chambers of Commerce, Wellington, so that, havifag gathered together resolutions of tho chambers, a deputation might wait on tho Minister of Finance I to sue if some modification of tho present plan oould not bo mado in order to make the taxation more equitable than it appeared to bo. —Mr E. R. Smith stated that the matter had been discussed by the Stock Exchange, but no definite resolution had' been passed, as the Exchango did not want to run counter to anything that might bo done by tho ohambcr. Tho majority of the, members were, however, in favour of tho suggestion numbered 2 on tho circular. Clause 2 was as follows:—"It is understood that the practice in the commonwealth in assessing tho Federal income tax is first to deduct the dividend paid, a company paying tax on the undistributed profits only, and shareholders are required to include in their income returns dividends reoeived. The latter method is certainly moro equitable than our present system."— After some discussion it was resolved as follows:—"Tho chamber recognises the necessity to provide funds sufficient for the neods of tho time, but is of opinion that tho present proposals in regard to income tax do not fall equitably upon taxpayers, and that great improvement in this direotion is possible. It is of opinion that amendment should bo mado even if as a consequence it may bo necessary to revise tho rates in order to Becuro sufficient- revenue. The amendments suggested are: (1) _ Both in regard to companies and in- ' dividuals a more adequate allowance should i be made from gross income to provide in i a reasonable manner for depreciation in . plant, machinery, and buildings, and also 1 T ij wastm £ assets are in question there should be a fair allowance to provide for i nklI 3S fund - ( 2 ) That tho injustice in- , nicted upon small shareholders in companies . consequent upon these being taxed through the company on the higher scale applicable to large individual incomes should be ro--1 moved. To this end it is suggested that 1 companies should be allowed »to pay a moderate dividend and only pay tax upon 1 tho excess, or individual profit, leaving tho • individual shareholders to include in °their i own returns tho amount of dividend re--1 T ve i 14 ? light even . be an endurable hardi ship that these excess balances should pay on i £" e scale of the total earnings should such be neoessary, but on the other hand the , deficiency might be met by continuing the graduated increase on individual incomcs 1 to a much higher point than at present s proposed."