COMPANY TAXATION

Poverty Bay Herald, Volume LXIII, Issue 19126, 22 September 1936, Page 10

COMPANY TAXATION

“MOST UNJUST BURDEN”

KALYPOr CHAIRMAN'S VIEW

SKILLED LABOUR SHORTAGE

The addition of higher taxation to the burden of other demands upon companies under recent, legislation was roundly criticised at the annual meeting of the Kninpoi Woollen Manufacturing Company, Limited, at Christchurch. “Before this year the company was required io pay 4s 6d in tlie pound, plus 30 per cent, which was really equivalent to about 5s lflil in 1 lie pound,” said Mr. A. McKelhir, chairman of directors. "This has always been regarded as a very stilt - impost, and your directors felt that the matter should be reviewed' at the earliest possible moment in order lo place shareholders in a more favourable position. Therefore tlie recent* announcement. (hat. income tax lias been increased to tlie substantial figure of. 7s 6d is a tremendous additional load which Iho company will be called upon to carry m the future, and when iaml tax is added lo this it seems a most unjust burden, considering most shareholders are on a much lower rate of taxation than the rate the company is called upon to pay. "Company taxation could be fairly met by imposing a Hat nominal tax on companies, after which shareholders would pay any balance of income tax required by tlie. State in their individual assessments.”

Mr. W. 11. Clark said the new taxation would bo an injustice to the. average company shareholder. Jt was estimated that increased wages 'would cost the company between £20,000 and £25,000 this year, and with shorter hours the company was heavily handicapped. "L think this Government is too optimistic altogether as to what a, business can stand,” said Mr. T. N. Gibbs. ‘ I hope steps will lie taken lo educate the public as to who is to meet the bill.” Air. Gibbs pointed out that shareholders were to get £12,000, hut the contribution to the Government would he nearly an equal amount. Referring to the company’s trading results, Mr. McKelhir said the company had had the host year during the last 15. Following a long period of depressed business conditions, the increased demand bad been very acceptable, but now skilled labour was very hard to obtain and good operatives were very much sought. At present the company s manufacturing units had ample work available, but. it was not able at. all times lo retain its trained staff or increase it.. Shorter working hours wore not an aid ito increased production.