DOUBLE INCOME TAX.

Poverty Bay Herald, Volume XLIX, Issue 16170, 5 July 1923, Page 7

DOUBLE INCOME TAX.

SHIPOWNERS' GRIEVANCES.

(Elec. Tel. Copyright—United Press Assn., (Australian and N.Z. catite Association.j

LONDON, July 3. With reference to Sir Joynson Hicks' new clauses in the Finance Bill relating to shipowners' double income tax, shipowners express the opinion that tihe new clause is tho first result of a world-wide movement in favor of the abolition of .all double taxation on tho ground that such taxation seriously restricts the development of trade. Tho subject is being examined by the: League of Nations Committee and the International Chambers of Commerce. The new clause is primarily due to the United States' otter not to tax British ships if Britain does not tax American-owned ships. It is learned that tho subject may be raised at the Imperial and Economic Conference in' tho hope of making arrangements with tho Dominions to avoid the present system. It is admitted that the position of the Dominions is different, none having Dominioin registered ships trading -to Britain, except tho Commonwealth Line, which, as State property, does not pay taxation either in Britain or Australia. Nevertheless owners express, the opinion that, it will ultimately be to the advantage of the Dominions, which are chiefly primary produce exporters, to assist in removing burdensome taxation on shipping, because, only by reducing running costs, can a reduction in fares ■ ami freights ba made possible. At tho present time, shipowners engaged in' the Australian trade complain of the unfair Australian taxation ! under which they have to pay both Federal and State tax on am assumed profit of ten per cent, on the gross takings whether they are making that profit or not. The owners suggest that, though a reciprocal agreement similar to the Anglo-American one, is impossible in the case of Australia, it would eventually benefit Australian producers if Australia either did not tax British shipowners at all or received from the British Government portion of the taxation, which the owners paid to the latter It is argued that, if the Dominions abandoned taxation on British lines, they would have an irresistable claim for a. reduction of fares -.and freights, which are eventually paid by the Dominion peoplc-s. Tho shipowners believe that the ideal system of , removing hampering restrictions on trade would be one under which all shipowners would be taxed only in the country of the ship's registration.