COMPANY TAXATION.

Waikato Times, Volume 103, Issue 17326, 11 February 1928, Page 11

COMPANY TAXATION.

INEQUITABLE INCIDENCE. A MINISTERIAL ADMISSION. (Special to Times.) WELLINGTON, Saturday. The Evening Post, in a leading article, warmly supports Mr . u. Upton’s vigorous protest against tnc inequitable incidence of the income tax. The Government, it points out, has been strongly urged by expert commissioners of its own selection readjust the incidence of the company tax so that investors in these concerns, instead of paying the maximum rate on their dividends, whether great or small, should pay only at the rale for their individual incomes; but it has pleaded that 'if it adopted this system It would be involved in a loss or revenue amounting to about a million a year. “The very argument against the change,” the Post protests, “is one ot the strongest arguments in its favour. It means that the State is now taking a million a year from business which it should not be taking in that way. A million a year, in other words, is being imposed upon large-scale organisations, which serve a very uselul purpose in providing suitable investments for thrifty people who are able to venture beyond bank deposits and State securities. The Minister of finance himself has admitted the unfairness of the present system, but because it is convenient to the taxcollector, it seems, the taxpayer is not to be considered.