TAXATION PUZZLE.

Star (Christchurch), Volume XLIV, Issue 643, 22 December 1932, Page 5

TAXATION PUZZLE.

5 Case of Friendly Societies and Unions. POSITION CLEARED UP. fSuecial to the ” Star.”) WELLINGTON, December 2t. As a result of the assessment of a leading trade union for income tax in 1 respect of the proportion of its income lV derived from other than the direct contribution of its members, there was t great perturbation in trade union and j- friendly society circles, which feared iv that all investment income was to be -* held liable for taxation. Representations have led to a closer investigation into the position, and e with fuller knowledge of the legal status e of the particular organisation concerned, it appears doubtful if the taxing n department w’ill be in a position to s maintain its assessment, now that it is in possession of the full facts. The publicity given to the matter has > resulted in clearing up the position regarding friendly societies who, it is stated, are not liable for taxation on ’* any part of their income excepting that ° small portion which may be derived e from trading purposes. e ;s e Error Admitted. r. "* Per Press Association. J 1 DUNEDIN. December 21. e A deputation representing friendly > societies waited on the Minister of is Finance, the Hon W. Downie Stewart, i- yesterday respecting taxation of g income from certain sources of friendly 3- societies. d The Minister communicated with the e Taxation Department, Wellington, and it to-day received the following reply y from the Commissioner: —‘‘The error e arose through a newspaper article d wrongly including friendly societies in d organisations being taxed. The error is being corrected immediately.”