NEW ZEALAND TAXATION

Otago Witness, Issue 3595, 6 February 1923, Page 29

NEW ZEALAND TAXATION

COMPANIES REGISTERED IN LONDON. DEPUTATION TO SIR F. D. BELL. 11s 9d IN THE £. * (F rom Our Own Correspondent.) LONDON, October 13 A deputation waited on Sir Francis Dillon Bell yesterday to discuss the question of taxation. The matter was arranged by the New Zealand and Australian Agents’ Association, and the meeting took place at the offices of Messrs Dalgety and Company. 'The members of the deputation, who were introduced to Sir Francis by Mr F. M. B. Fisher (director of the Imperial Commercial Association) were : The Hon. E. W. Parker (chairman of Dalgety and Co.), Mr H. E. Davison (Dalgety and Co.), Mr G M. Reid (New Zealand Loan and Mercantile Agency Co.), Air A. St. George Ryder (National Mortgage and Agency Co.), Mr J. King (hon. secretary of the New Zealand and Australian Agents’ Association). Mr Parker briefly irrge>d the necessity of reducing the heavy pressure of taxation upon companies registered in the United Kingdom, and having their head offices in London, and then read a memorandum which had been prepared by the Agents’ Association. While appreciating the measures already taken to lighten the burden, the deputation ventured to ask whether the further recommendations of the committee appointed to review the question of

taxation would in course of time receive the sanction of the New Zealand Government, especially so far as they related io the two vital matters of: (1) Removal of what is known as the double income tax as has been done in Australia; (2) that the New Zealand Government adopt the individual system of taxation, taxing companies on their undivided profits only, as recommended in the majority report of the committee already referred to. Mr Parker handed the memorandum to Slir Francis, and mentioned that his own company, and no doubt others, were paying 11s 9d in the £ in taxation, which was a burden greater than they could bear. Mr Ryder pointed out that in addition to the 11s 9d mentioned by Mr Parker, the Home companies had to pay corporation profit tax and pressed the question of the removal of the anomaly of a double income tax. Mr Reid suggested that -lev Zealand should again lead the world, as it had frequently done in other directions, by adopting the bold policy of encouraging industry and assisting its revival by an immediate substantial reduction of income tax, even though this involved a temporary Budget deficit in the meantime SIR FRANCIS BELL’S REPI.Y. Sir Francis very sympathetically listened to the views put forth, and promised (o lay them before the Prime Minister and other members of the Government on his return to New Zealand. He could assure the members of the deputation that the present Government were favourably disposed towards granting some measure of relief to British companies such as the deputation represented, who provided money to finance the industries and trade of the dominion. He mentioned that Mr Alassey had recently put before the House of Representatives several of the recommendations of the Special Committee, which had been set up to inquire into the matter of taxation, such as the removal cf' the income super tax. a reduction in the land super tax, and permitting business losses to be set off against profits over a period of three years. As to the removal of the double income tax, Sir Francis promised to see what could be done, but as to the second suggestion he frankly stated he would be opposed to the adoption of any system of taxation on individuals. He recognised, and the Government did as well, that the companies represented were doing good work in the dominion, and instead of crippling them by excessive taxation, he thought that their suggestions should receive consideration so far at least as might be found practicable. The proceedings were concluded by Air Ryder, as chairman of the New Zealand and Australian Agents’ Association, thanking Sir Francis for receiving the deputation and for his promise of consideration of their views.