TAXATION ON RACING

Wanganui Chronicle, Volume 74, Issue 190, 13 August 1931, Page 8

TAXATION ON RACING

“IMPOSITION ON PUBLIC.” BURDEN ON AUCKLAND CLUB. The view that the taxation on racing was an imposition on the public and tended to assist the illegal business of the bookmakers, was expressed by the president of the Auckland Racing Club, Sir Edwin Alitchelson, in his address at the annual meeting of the club on Alonday. While he congratulated members on the operations of the past season as far as racing was concerned, the president said the profit of £lOB5 was the smallest for very many years. After £4OBB had been written off on buildings and plant, a loss of £3003 was apparent. “During the year £54,110 was paid in prizemoney, including £3lO contributed in sweepstakes—£s23o less than was paid\ last year,” Sir Edwin added. “Owing to the uncertainty of the future and the present conditions it has been deemed necessary further to curtail the stakes this year. It has been considered advisable by the committee to provide at present for the spring meeting only, and £7300, a reduction of £2OOO, has been allotted in stakes for the two days. For the summer meeting, only the major events, requiring early nominations, will be provided for.” Costs to Bettors. Alentioning the great decline in the totalisator investments throughout New Zealand, Sir Edwin said it was difficult to estimate what the position would be in the coming year. The increased racing taxation had seriously affected all clubs. Investors had to pay 5 per cent, on investments and 5 per cent, dividend tax, a condition which certainly played into the hands of bookmakers who, with the imposition of each new tax, reaped a greater harvest than ever, in addition to paying totalisator odds with a limit. The taxation most seriously affected the horse-owner, who depended on the totalisator revenue for prize-money, and who, apart from the other taxes, was required to pay 5 per cent, on stakes won.

“If the Government desires to increase its revenue from racegoers, the sooner these taxes are reduced the sooner will that happen,” said Sir Edwin. “A reduction t< the former rates and the passing of the Gaming Bill to permit the telegraphing of money to the racecourses and the publication of dividends would most assuredly add considerably to the State revenue. I disagree with those who say that the taxation is making it difficult for many clubs to survive, for there arc only two taxes that in reality directly affect clubs, the land and amusement taxes. It is the investor on the totalisator who has to pay the taxes, the clubs being the medium through which they are collected. ” Position of the Clubs. Sir Edwin contended that the clubs were affected adversely because the race-goer, by being heavily taxed, was prevented from giving meetings his customary support. Even with increased totalisator revenue through reduced taxation, clubs could not receive any material benefit, as, under the rules of racing, the totalisator receipts were the basis of the prize-money to be given the following season. Clubs could hope to improve their position only by reducing stakes and overhead expenses unless they received greater attendances and patronage of owners.

One tax which seriously concerned all clubs was the contribution to the Racing Conference. The object of the conference in making for clean racing and keeping the courses free from undesirables had been attained, but Sir Edwin thought it was questionable whether Auckland had received the equivalent of its contribution of £13,488 during the past ten years. The Auckland assessment for this year, £1366, was greater than a sixth of the total Dominion levy, and Auckland Province would bear more than a third of the total.

During the past year the Government received £62,617 in taxes from the club, the same amount as in the previous year, although the club received 25 per cent, less revenue from the totalisator. The Government refunded £250 for improvements. With local and water rates the taxation totalled £64,676.

Air C. E. Alajor considered that the public resented the increases in taxes on their investments. He did not know whether the Government could reduce the taxation, but the clubs should see that no increases were made. As long as the clubs were ready to be exploited the existing state of affairs would continue. Air Major agreed that the levy for the Racing Conference was too great. The club’s contribution was now approaching the sum of the members’ subscriptions. He recommended the committee to consider the installation of a double totalisator at Ellerslie and reduced charges of admittance. In reply, Sir Edwin said the committee already had under consideration the reduction of the charges of admission, and he anticipated a change would probably be made shortly.