NEARLY HALF OF NET PROFITS

Southland Times, Issue 23345, 1 November 1937, Page 8

NEARLY HALF OF NET PROFITS

TAXATION PAYMENTS BY D.I.C. CONTRIBUTION OF £84,521 TO NATIONAL REVENUE (Special to The Times) DUNEDIN, October 30. The degree to which large trading companies in the Dominion are contributing to the national revenue by way of taxation was illustrated by some figures which the chairman of directors (Mr P. L. Halsted) placed before the annual meeting of the D.I.C. shareholders. “There is a tendency in some quarters to decry big businesses as being harmful to the country and to discourage them by the imposition of heavy taxation and harassing restrictions,” Mr Halsted said. “The D.I.C. is one of the biggest businesses in the Dominion and I think the following figures will be oi interest to you and the public in general. “We have 860 employees drawing £122,837 a year. We paid the Government in direct and indirect taxes, namely land and income taxes, duty and sales tax, no less than the sum of £84,521. There was also a sales tax on everything purchased in New Zealand. We are unable to estimate how much this amounts to as with such purchases the tax is collected by the supplier and charged to us as part of the cost but it must be a very large sum. We purchased in New Zealand from local manufacturers and traders goods valued at £306,444 and in England and overseas £156,023 (New Zealand currency). Thus of our total purchases 55.2 per cent, were made locally and 33.8 per cent, overseas. Of our net profits, arrived at after making all the necessary provision for depreciation, but before providing for taxation, the Government takes 9/11 in the £. The shareholders divide 7/1 in the £ and the 3/- in the £ is retained in the business for the purpose of expansion and stabilization. These figures show clearly the support we afford local industries and traders, the very large amount we contribute to the revenue of the country and the very moderate amount sharehouders receive in return for supplying the capital and taking all the risk.”