COMPANY TAX

Southland Times, Issue 20615, 13 October 1928, Page 7

COMPANY TAX

VIGOROUS PROTEST ENTERED. (Per United Press Association.) Hamilton, October 12. A vigorous protest against company tax and the present operation of graduated land tax was made by Mr H. S. Hawkins, presiding at. the annual meeting of the Farmers’ Co-operative Auctioneering Company to-day. He said: “The Government still tell us to give no relief in company taxation. Last year although you received no dividend, your company had to pay 4/6 out of every nett pound earned. Most of that money ought to be in your pockets to-day. It requires £28,734 to pay 5 per cent, dividend. Our preference and ordinary shares capitalize to obtain this without anything to put into reserves or any balance to carry forward. We have to make a minimum nett profit, of £37,076. The greater part of the difference which is deducted as income tax, ought to belong to you.” Mr Hawkins cited the Finance Minister’s admission in the Budget speech that the present graduated land tax system operated harshly against a company with several establishments.