HOW COMPANIES ARE AFFECTED.

Taranaki Herald, Volume LIV, Issue 13480, 20 July 1907, Page 5

HOW COMPANIES ARE AFFECTED.

For the purposes of this Act all land owned by a company shall be deemed (though not to the exclusion of the liability of the company or of any other persons) to be owned in common by the shareholders of that company in the proportions which their interests in the paid-up capital of the company bear to the total paid-up capital, and the said shareholders shall be individually assessed and liable for graduated land tax accordingly. In the cage of every shareholder there shall be deducted from the graduated land tax payable by him in respect of the land of the; company such part of the amount of the graduated land tax payable in respect of the said land by the company as is proportionate to his interest in the paid-up capital of the company. The term "shareholder" shall include all persons on whose behalf a share in the company is held by a trustee or by any other person. If two or more companies consist substantially of the same shareholders these companies shall be deemed for the purposes of the, graduated land tax to bo a single coi&pany and shall be jointly assessed and liable accordingly with such right* of contribution or indemnity between themselves as shall be just. For the purposes of this section two companies shall be deemed to consist substantially of the same shareholders if not less than three-fourths of the paid-up* capital of each of them is held by or on behalf of shareholders in the other. Shares in one company held by or on behalf of another company shall for this purpose be deemed to be held by shareholders in the last-mentioned company.