TAXATION OF PASTORAL COMPANIES.

Otago Witness, Issue 3337, 27 February 1918, Page 13

TAXATION OF PASTORAL COMPANIES.

Few outside those directly interested dream of the extent of the present-day taxation of Anglo-Australian companies. The following comparative statement compiled by the Sydney Daily Telegraph from latest mail reports is enlightening:-- - ill I lit nalcetv and Co. ...£608,703 £238,477 £270,22G Vs%JSr*£ M.A. 28U01 86,122 101,979 Aus. Iter. L& P. ... H7,0?8 32,425 rt. 671 Dalgety and Company made enormous profits, but had to pay 47 per cent, of them in taxation. The other two paid about 30 per cent, of their earnings away m this form. Dalgetys paid £175,810 in British taxes and £62,767 in Australasian, whilethe New Zealand Loan paid £33,262 in British and £52,860 in Australasian taxes. In the third report they arc not # separated Whether some other appropriations _ should not be written off profits is questionable, for out -of the above balances Dalgetys wrote off £IOO,OOO from premises and contributed £IO.OOO to the staff benevolent fund. The New Zealand Loan Company wrote £30,000 of premises and also carried £IO,OOO to the benevolent fund; and the Australian Meroantile applied £26,000 to their investments. Still, they were enabled to pay handsome dividends and make substantial appropriations to reserves At the meeting of Dalgety and Company the chairman (Mr E. W. Parker) said: ;"In the profit and loss account the only item that I think I need comment on is taxes, which at £238.477 show an increase of £156,850 a very large sum. You will remember that I told you last year that the amount that we should have to pay this year on tho then basis of taxation would exceed £IOO,OOO, but I little thought that it would amount to the present figure. However, there it is, and we have to pay it, but I still wish to protest at having to pay double income tax. The Chancellor of the Exchequer acknowledged that we had a grievance to this extent: that in "The United Kingdom Finance Act, 1916," he provided for a refund of Is 6d in the pound in those cases where in this country shareholders pay 5s in tho pound and in the colonies an amount eoual to Is 6d in the pound or over; but that is not sufficient; we ought to be absolved from paying income tax twice over on any sums whatever. There is an, item under this heading which appears for the first time—viz., excess profits duty. £80,269, but no v one can cavil at this, as it is very evident that money must bo provided from some source or another to carry on the war, and where we make large profits we must expect to hand some of them over to the Government of this country. In this connection, however, I think it is only fair to say that we are hopiner to get some relief under section 23 of " The Finance Act, 1917," in respect of this item: the matter is now in negotiation with the Government, and we hope to ant something .-out of it. The State and Federal taxes in Australasia-'also show a very large increase. This, again, is owing to "the Government having to provide funds for war necessities, and we can look for little reduction in these until the war comes to an end; rather, we must exoect an increase, because next year we shall have to pay a further " war profits tax" in Australia, which, if levied as at present proposed, will undoubtedly amount in our case to a large sum.