NEW AUSTRALIAN TAX

Wanganui Chronicle, Volume 77, Issue 153, 30 June 1934, Page 15

NEW AUSTRALIAN TAX

SHAREHOLDERS. Tax demands have now followed the assessment notices received in connection with the new Federal Government tax on dividends, based on the proportion of profits earned in certain New Zealand companies in Australia. Most shareholders are at present making no move to meet the tax, which falls due at various dates in August and September. The possibility of a combined protest or of making a test case has been mentioned, but no indication of concerted action ha*s yet ben given. An approach has already been made to the Commissioner of Taxes in New Zealand, but he has replied that he is unable to take action. It is considered unlikely that any steps will be taken by the New Zealand Government. It, is pointed out that if the tax weir applied equitably all New Zealand shareholders of the companies cop» cerned, those having head offices in New Zealand, but trading partly in Australia, would be liable for payment. However, the Federal authorities appear to have exercised a wise discretion and are taxing only those shareholders deriving additional income from Australia. The means that might be adopted by 'the authorities in enforcing payment suggest interesting possibilities. Although the individual amounts involved in payment of the tax are small, shareholders object to the principle of the tax. It was stated by Sir James Allen at the annual meeting in Dunedin of the Trustees. Executors and Agency Company of New Zealand, Limited, that there appeared to be “room for an understanding between the New Zealand and Australian Governments in order to check the growing practice by Australian Governments of taxing outside 'their jurisdiction-"