NEW ZEALAND TAXATION

Otago Witness, Issue 3040, 19 June 1912, Page 3

NEW ZEALAND TAXATION

DEPUTATION TO THE HIGH COMMISSIONER, A BRITISH PROTEST. (Fbom Oub Own Cobkesponhent.) LONDON, April 26. On Monday a deputation representing the Manchester, Birmingham, Bradford, and Leeds Chambers of Commerco, and the Manchester Association of Importers ana Exporters, had an interview with Sir William Hall-Jones at tho Now Zealand Government Office in Victoria street, on tho subject of taxation of Homo exports. The deputation was introduced to tKe High Commissioner by Sir William Priestly, M.P. Other members of it were Mr P. B~ Hudson (Leeds), Mr G. H. Wright, and Mr Rainsford (Birmingham), Mr A. Lone-land, and Mr W. Speakman (Manchester Chamber), and: Mr J. L. Wilson Goodo (Manchester Association). The proceedings were private, but tlie general character of the representations made to the High Commissioner will bo gathered from the following summary of the speeches. Mr Longland said that the intention of tho New Zealand law was that all foreign trading concerns doing business with the Dominion hould be. subject to payment of income tax. The present law was, however ineffective, as was proved by decisiona in the Dominion. The Dominion Government, therefore, proposed shortly to introduce legislation to amend the Land and Income Tax Assessment Act in such a way as to enforce the pas'merrt of income tax by all foreign companies and. firms— / and for this purpose Great Britain was foreign—doing business with tho D on, i n * >n - Already there existed a license fee or stamp tax (maximum £IOO, minimum £10) levied on the capital of any foreign company, and the device of forming subsidiary companies in the colony to avoid taxation of Home capital would be no longer available, as, by the new law, tho distinction was to be ignored. The stamp tax was unreasonable, especially with its intended broader application, since the greater proportion of tho taxable capital was not utilised in New Zealand and had to bear the burden of British taxation. Their main complaint was not against the Stamp Act as already enforced, but against the amendment of the income tax kw, which, would enforce payment from all Home firms on tho amount of their business done with New Zealand. These taxes, would, cumulatively, havo a disastrous effect upon the "British export trade to the Dominion. New Zealand was the only Dominion which imposed both a stamp tax and an inoomo tax. Mr Longland put forward several illustrative instances of taxation showing that a total profit of £4IOO earned by four Home firms and the agency company through whom they carried on their operations, would bo taxed 13J P»r cent. j£ ; . _• I Mr Wright pointed out that in urea* Britain the principle adopted by the Income Tax Commissioners was that all income was liable to be taxed which was re* coived in Great Britain. The tax levied in New Zealand apparently was imposed on a different principle. Mr Spoakmon said there were so many complaints of the double levy of income tax on the same income by various Governments within the Empire that the matter was ripe for discussion between the various administrations as to' the adoption of a* general principle. Sir William. Priestly said that if tho British Government pressed for payment or income tax on the New Zealand plan, every exporter of wool from the Dominion would have to pay a tax in Great Britain on that portion of his profits which was /node here, as well as the tax to the New Zealand authorities on the wholg of his income. Mr Wilson Goodo said that tho Importers and Exporters' Association was concerned with furthering trade between Groat Bri- - tain and. anions: other countrios, New Zealand. Tho taxation proposed was in direct discouragement of trade, was little use appointing trade commissioners to visit the Dominion and prepare reports if their efforts were to be countered by opprbesivo impost*. Sir William Hall-Jones thanked the deputation for the expression of its opinion He was somewhat impressed by the observation that New Zealand was the only country which imposed both a stamp tax find an inoomo tap. As they' wevo ayrare, there had been a change of Administration in New Zealand. This v.-as no doubt, from their point of view, ah advantage, as the representations wojuld be received with an opcrr mind. Sir'WiUiam also added that as New Zealand firms had to bear their share of the "cost of administration of the affairs of the Dominion, so companies from this end which had business in Now Zealand must properly bear tbeir share of that cost. The deputation thanked the High Com* j missioner ami withdrew. Sir William told mo that he will lay the representations beforo tho Government of New Zealand.