LAND AND INCOME TAX

Otago Daily Times, Issue 18049, 24 September 1920, Page 6

LAND AND INCOME TAX

SOME ANOatALIES.

(Fp.om Oun Own Correspondent.) , AUCKLAND, September 23. Hi© Land and Income Tax Bill was the subject of a discussion at the annual meeting of the Auckland branch of the New Zealand Society of Accountants last evening. Mr G. W. Hutchison referred to the fact ,that the maximum settle of income tax proposed was Ss 9d in, the £, and Ire said that many bona fide expenses of a business were not deduetable for income tax purposes. Consequently a tax levied on the actual net profit of a company might amount to over 10s in the £. Such a rate \va§ bound to destroy all incentive to enterprise. Mr S. G. Chambers said ho know of a company which proposed dissolving and becoming a partnership concern if the now Bill became law. He knew of a company earning over £10.000 in profits, but not earning 4 per cent, on actual capital invested. Therefore this company would be paying the maximum tax, and would not be earning 4- per cent, on its capital. This rate of taxation would prove disastrous to largo industries. He ocmld not see how it would bo borne. If the tax were on a sliding scale, starting at 6 per cent, and rising to 20 per cent, on the profits earned, he thought "it would be a good thing, as it would cut down profiteering.