"INCENTIVE ALLOWANCE"

Auckland Star, Volume LXXIII, Issue 177, 29 July 1942, Page 3

"INCENTIVE ALLOWANCE"

AC STRALIAX PROFITS LIMITATION To encourage efficiency, it is likelv that th» " profil - s limitation legislation will conrYk f„ p ™™ lon lor ™ •incentive allo-nance" of cinr ,hf n" 1 e £10 ° ot proai above 4 per cent the allowance to be tax free stat»« • Melbourne paper. The figure of 4 per cen* u-ill ": ! , cu ! ated ., a,tcr provision has been made lor taxation and other expenditure It is ? ,he llmlu "-ion will apply to the shmilrt financial year, and that all businesses should thereiore make the necessarv provisio? l h a^- 1 . ,ax wi " not be collected till 1943-44" The Taxation Advisory Committee has air*»arr S™ a ble ro m a m k° e i lsure lhal companies depreciation? and Lerr ß r\heVr° n pro"?7 a a n - Ce 4 S ° ' hal co ™i*nies ca£ bad vLrs L i; ™, per cem ln cood and pe? cent in The ne?" " nl M ° ne and * It is believed careful consideration is being given sho,fM S^ BeSI1 ° n , ,h / 1 ncw a nd weak compln™ Permitted to build up reserves out P ?* s ; bul Government advisers are understood to be opposed to this on the ground that reserves held Un ifsua r i'lv Es h euS 01 Ehar£,ho l3ers. and are Thev cfato th». a . ta r ßS . expansion purposes, business which should ?oExpand* a-e those engaged on essential war lort. Sd ttasuch expansion should be carried out bv wav of ?ss jr r m 2 al approved by'the SapitSi :r sc a-d. Another proposal being conside-eri is that preference share dividends should be trel'-S as interest payable as part of a lompiJiv's m S S - among £ Sg Se°eyolved burdeif. WiU CarTy Parl oi " he SnftSuon