TAX DEMANDS

Otago Daily Times, Issue 22295, 22 June 1934, Page 7

TAX DEMANDS

THE FEDERAL GOVERNMENT NEW ZEALAND COMPANIES CONCERNED, (Special to Daily Times,) AUCKLAND, June 21. Tax demands have now'followed the assessment notices received in connection with the new Federal Government tax on, dividends based on the proportion of profits earned by certain New Zealand companies in Australia. Most of the shareholders are at present making no move to meet the tax, which falls Uu'e at various dates in August and September. The possibility of a combined protest or of making a test cas'o have been mentioned, but no indication of concerted action has yet been given. An approach has already been made to the Commissioner of Taxes in New Zealand, but he has replied that he is unable to take action. ,It is considered unlikely that any steps will be taken by the Njw Zealand Government. It is pointed out that if the tax were applied equitably to all the New Zealand shareholders of the companies concerned, those having head offices in New Zealand but trading partly in Australia would be liable for payment. However, the Federal authorities appear to have exercised a wise discretion and are taxing only those shareholders deriving additional income from Australia. Although the individual amounts involved in the payment of the tax are small the shareholders object to the principle of the tax.