HEAVY TAXATION ON BANKS

Southland Times, Issue 23839, 9 June 1939, Page 7

HEAVY TAXATION ON BANKS

“ANTIQUATED SYSTEM” IN NEW ZEALAND (United Press Association) WELLINGTON, June 8. Early this year the banks between them paid some £380,000 in income tax because in the previous taxation year they had held an average of £67,000,000 from the public in the way of deposits, said Mr R. C. Addison, chairman of the Associated Banks at the smoke concert of the Bank Officers’ Guild.

The banks between them, he said, had paid a further £290,000 in income tax because they had made advances to the public averaging £51,000,000, said Mr Addison. They also paid substantial amounts on other assets and liabilities including—and this was the cruellest rub of all—just on £50,000 on the £8,750,000 which was the average they had maintained at the Reserve Bank and upon which deposits they'did not receive any interest. Mr Addison added that he wished to make it very clear that he was not referring particularly to the present Government. It was only fair to emphasize that a review of this antiquated system of taxation, which was conceived under absolutely different circumstances from those now obtaining, had been shelved by the various Governments, Mr Addison also paid a tribute to the service which the banks had given the Dominion during past years and gave an assurance that they would continue that service in the future.