THE ASSESSMENT OF INCOME TAX. THE AMENDING BILL DISCUSSED ON CHANGE.

Otago Witness, Issue 2744, 17 October 1906, Page 26

THE ASSESSMENT OF INCOME TAX. THE AMENDING BILL DISCUSSED ON CHANGE.

' At Monday afternoon's sitting of the Dunedin Stock Exchange, after the ordinary business had been disposed of, the chairman drew the attention of members to clause 18 of the Land and Income Assessment Act Amendment Bill. Clause 18 is intended to amend section 56 of the principal act T>y adding to paragraph (1) thereof the following proviso: — " Provided that where any such company has returned to its shareholders in divicV.nds an amount equal to the paid-up capital, euch company's income shall be deemed to be a sum equal to the whole of^thc dividends paid to shareholders in such year." Under the existing raw it is provided that the- income derived in any year from its mining operations by any company formed for mining purposes shall be a sum equal to one-half of the dividends p*vid by such company to its shareholders in such year (irrespective of the total amount paid back in dividends), and that the company shall be liable to income tax accordingly. The Chairman said that; the effect of the pioposed amendment would be to double the tax on those companies that had paid back their capital. He thought they should take some steos to protect the industry and have the clause eliminated. Until quite recently only a mile of the river could be acquired, and though now three miles could be acquired the concession was useless as far as some companies were concerned, as in nianv cases the suriounding ground had been dredp.ed already. A member expressed the opinion that they should join forces with the Auckland Exchange, which had already protested in the matter. Some companies had paid their capital back five or six tinaes.

The Chairman said that tho point seemed to him to be that dredging companies had very short lives. There were, of courss. exceptions, but generally when a dredging company had paid back its capital the time for liquidation was near. Rather at such a time taxation should ba taken off.

The Secretary of the Exchange said he though the arguments against the clause cou'd not be belter presented than they were in a leading article in the Otago Daily Times a few days ago. The oviuon was expressed that it would ho ■well to obtain the co-operaticvu of the other exchanges in the matter. If they were united their protest would carry mbre weight.

It was ultimately resolved on the motion of the chairman, t;j e&ss "tho following resolution: — "That this exchange is of opinion that no further taxation shou'd be invcosed uuon the mining industry, and that the members for the city hz written to asking them to use their best endeavours to have clause 18 of the Ls>ml and Income Assessment Act Amendment Bill exounged therefrom, and that the chairman ami secretary dra.f+ and forward a letter to Messrs Millar. A^no'd. and Barc'riy stating the views of the roernbars of the exchange ; also that the other exchanges in the colouv be asked to co-operate on the same lines."