COMPANY TAXATION

Otago Daily Times, Issue 23811, 18 May 1939, Page 12

COMPANY TAXATION

STATE AS SHAREHOLDER PRESENT TRADING CONDITIONS DIFFICULTIES OF NEWSPAPERS (Special to Daily Times; AUCKLAND, May 17. “ Comparing the net result for the year, £50,565, with the reserve for Government taxes, £50,521, shareholders will see that the Government is collecting half the gross profits for the year” said Sir Cecil Leys, chairman of directors of New Zealand Newspapers, Limited, at the annual meeting to-day. He explained that the taxation reserve included land and income taxes and £4914 for the social security charge. The chairman stated that if the company was operating in Victoria or Western Australia its liability for Federal and State taxation on last year’s profits would be about £20,000. In New South Wales the figure would be slightly higher. Dealing with the Government’s decision to restrict imports, Sir Cecil stated that with the importing and retailing of merchandise largely paralysed advertising was checked in a manner outside the the experience of newspaper in this country. Dozens of advertised articles were prohibited or obtainable in such limited quantities that the incentive for publicity had disappeared. By economies from which some, unfortunately, must suffer the company honed to meet the further changed conditions.