TAX BURDENS

Bay of Plenty Beacon, Volume 4, Issue 129, 14 July 1941, Page 5

TAX BURDENS

GEIECIKr- TO PROGRESS t INDUSTRY HAMPERED The opinion that the stability and progress of private! enterprise will be seriously affected if the present rate of increase in taxation is maintained for any lengthy period was expressed by M>r H. J. Keliher, managing director of Dominion Breweries, Limited, speaking at the: annual meeting of the shareholders. Mr Kelliher said the outstanding feature of the financial yeiar was the large amounts contributed by the company to the national exchequer. The various sums paid under all headings of taxation amounted to no less than £491,275. Thi«v represented a cash expenditure of £141,275 in excess of the subscribed capital of the company and, on a capital ratio, must easily constitute a record contribution made by any industrial concern in this or any. other Dominion. "I need hardly point out that it is impossible to make such, a substantial contribution to- the country's revenue without necessitating the greatest efforts on the part of everyone connected with thei company," he added. "Indeed, cash disbursements on such a huge scales have demanded important and complicated readjustments,, more especially! when taking into account our large annual turnover, in, relations to the company's 1 capital. "Unfortunately, abnormal taxation affects the earning capacity of private capita] in a manner which, in times such as these, gives great concern to company directors and cxccutives. It stands to reason that the greater the demands made on private enterprise by taxation, the loss money is available, not only for general developments and expansion of business, but also for divi-» dends/ on money invested by shareholders. The general practice during normal times is for business to oass on taxation by treating it as e part of the costs of manufacture or distribution. But there comes :i stage when thisi is no longer practicable, and there can hardly be any doubt that the stability and progress of private enterprise will be: seriously affected if the present rate cf increase in taxation is kept up for any lengthy period."