BURDEN OF COMPANY TAX

Taranaki Daily News, 13 October 1928, Page 13

BURDEN OF COMPANY TAX

PROTEST MADE IN WAIKATO. SHAREHOLDERS’ LOSS OF PROFITS. By Telegraph.—Press Association. Hamilton, Last Nighv A vigorous protest against the company tax and the present operation of tho graduated land tax was made by Mr. H. S. Hawkins when presiding at the annual meeting' of the Farmers’ Cooperative Auctioneering Company to« day. “The Government still tells us it could give no relief in company tax-, ation last year,” he said. "Although you received no dividend your company had to pay 4s 6<j of every net £1 earned. Most of that money ought to be in your pockets. “It requires £28,734 to pay a 5 per cent, dividend on our preference and ordinary share capital. To obtain ibis without anything to put to reserves nor any balance to carry forward, w© have to make a minimum net profit of £37y 076. Tho greater part of th© 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 th© present graduated land, .tax system operated harshly against a company with several establishments.