ATTITUDE OF THE BANKS

Taranaki Daily News, 25 September 1930, Page 9

ATTITUDE OF THE BANKS

• ■ THE INCREASED TAXATION . . ; ;.i>: ■ ' i Aicu’G, t AN INEQUITABLE BURDEN CHARGES FOR ACCOUNTS BANK .CHAIRMAN'S .LETTER By Telegraph;—Press' Association. Wellington, Last Night. r Sir Henry Buckleton, general man* ager of the Bank of New Zealand, has sent the following letter! to the actingPrime Minister, the Hon. E. A. Ran,som, concerning,'the banks’ attitude to the increase ?in'.the note tax:— “In view made by some members regarding, of the banks in nqpt-tif&fefei/es shouldering to the may I- by; -wa'Kof r€C^on point out: (1) That the hanks are for income tax purposes already inequitably taxed on an unscientific and/arbitrary basis, imposed on no other company, which assumes a fixed profit,. even, though its business might be actually run. at a loss. ■ 1 Under -'thfe' 1 - inequitable system this ' batik’ albne frill "'pay this year £58,841 over and above the assessment if made in the ordinary way were it merely a limited' company. “(2) That the bank has no intention of passing on the increase of 10 per cent. in. income tax to which, all tax-, payers are equally subjected, notwith-. standing the untenable basis of the taxation previously referred to. This 19 per cent, increase amounts to '£l7,i 865. , “(3) That the increased note tax dates from July 1 last, while the charge for keeping accounts dates from October 1 next. The' increased tax for this period, which represents to this bank £13,599, is not being passed on. “(4) That we ,estimate this bank’s increase in nptA tax frill not be less than £54,000 per annum, whereas the number of accounts of the public kept by .us liable to thej increased charge is Under ?8o;(lb0,.-representing? at 10s £42,£OO. ” . r

“(5) That as This, bank is probably doing half the 5 banking business of the Dominion it can -reasonably be assumed that. the total number of accounts assessable by the combined banks is approximately 170,000 to 200,000, and not the wild conjecture of one member, 400,0.00 to j600,q00.. , r ; - . “(6Maly.-iJ:further, state that rather less than one-half of this bank’s profits last year were earned inside the Dominion, and of the New Zealandearned profit £152,602 was not taxable, being interest on our holdings of ‘tax . free’: 4i per cent, nvqr bonds. Tho sum of £33,900 was also exempt from taxation, being ,the bank’s contribution to its officers’ pension fund and to .widow's. > ’ ' t’ l ' ■' J'-'.-.-“To clarify the. position may I ask you to be good enough to take flic earn liest opportunity of submitting to ths House the facts as herein set out, and should honourable members care tqj question. me. on generallji T ’am 'at tffe'ftf ; sorvic^’ , '- fc f •