ESCAPING TAXATION

Star (Christchurch), Issue 17192, 8 November 1923, Page 11

ESCAPING TAXATION

GERMAN FOREIGN INVESTMENTS. By Telegraph—Press Association—Copyright Australian and N.Z. Cable Association. PARIS, November Ci. j Senator Gaston JapV, writing in the ” Echo de Paris,” gives details of the I manner in which German capital has escaped to foreign countries. Flo says • ; “ National fortune valued at £2O, 000.000.000 has been transferred abroad. German manufacturers organised agencies in Switzerland, Hnlland, Denmark and other neutral countries, which were given the exclusive right to sell their products. Orders to head offices mentioned fictitious prices, which were accepted. Thanks to the collusion of officials in the Government export services, goods were invoiced to foreign agents at 30 per cent of* their real value, and the foreign-agents reaped enormous profits. “ Meanwhile German headquarters were credited with no profits, and thus avoided taxation. •• Once these reserves wore got abroad, the Germans transformed their agencies into. Swiss. Dutch or Danish limited liahilitv companies, which were able to ! buy shares in other companies in Ger J many for nominal'prices, owing to the | fall in tho mark. Thus German capital- i ists have made colossal fortunes while j the mass of the people have been j Senator -Japy says that the occupa- j tion of the Ruhr is the sole means of : thwarting this manoeuvre. “ If the Allies leave Germany to com- i ph-te the fraud.” the Senator adds, \ •• Germane will have won tho war. for j hor freedom from taxation and absence , of debts will make her master of th.> ; markets of the world. It is iueonceiv- ! able that the British should support this German trickery."