TAXATION COMMISSION

Wanganui Chronicle, Volume LXXXI, Issue 19009, 9 May 1924, Page 5

TAXATION COMMISSION

(Per Press Association.' AUCKLAND. May 8. Herbert S. Hawkins, farmer, of Hamilton, and director of the Farmers’ Auctioneering Co. said that the company had to increase net profit by 35 per cent, to provide for Government taxation. The company had three earning departments, two on a commission basis, and its earnings could not be increased without increasing the rates of commission. Without substantial relief the company could not carry on indefinitely. Under a nominal rate of taxation the comnany was able to pay its way and build up a very modest •reserve of £46.200 out of profits in twelve years, but the higher tax gradually decreased the amounts until they ’actually ceased in spite of the abnormally good conditions before the depression of 1921, which turned a net profit of nearly £60,000 to a substantial loss. In 1921 the not profit was £59 852 and taxation £27.309. In 1922 there was a loss of £1383, taxations being £1549. Last year the profit was £207 and taxation £144 3. No dividends were paid during the last two years. As regards his own taxation as a farmer, the land tax on 795 acres i n 1912 was £4 13s 4d, and on 709 acres in 1920 £ll6 4s. In addition income tax had been levied on portions of this gross income without reference to net. income. This net income for the paist four years amounted to £235, and he paid £265 in taxation. George Cubb, farmer, of Puriri, urged the abolishing of the land tax. He paid £2 65 6s Id to the Thames County Council as rates and taxes and £liol in land tax on a farm which carried 50 dairy cows. The commission adjourned.