COMPANY TAXATION

Dominion, Volume 10, Issue 3190, 14 September 1917, Page 8

COMPANY TAXATION

STOCK EXCHANGE MAKES AN APPEAL. The chairman of the Wellington Stock Exchange has addressed j;uo following letter to tho Minister of Einance, on tho position of companies, under the new finance legislation:—"l am directed by my exchange to draw your attention to thu effect of clause 37 of the Kniinco Bill. 1317, as transmitted from the Houso of Kcpresentatives to the Legislative Council. Section 1 of the clauso has been amended to make the benefit of the clause applicable to persons whose annual ittcomo is not greater than .£IOO, instead of ,£3OO as originally proposed. This relief to tho email taxpayer is, however, in tho opinion, of my exchange, rructieally nullified by tho proviso which follows the clause. "The ell'ect of tin's proviso, as my exchange reads it, is that the dividend paid to the share'liolder, plus tho amount ho is entitled under the clauso to claim from the commissioner as reclamation on account of the higher rato of tax paid by the shareholders'company, are together not to exceed 6 per cent, on tho total amount paid up in respect of his shares. Tl>o total amount paid up in respect of his shares ive understand to mean the Amount paid up as appeuriug in the ehare register of the company. "If this is correct, then, in view of the fact fliat Bie great bulk of tho shares of the sound and favourite companies have been, for many yearsat considerable premiums, the result will lie that in hardly more than two or three companies will it happen that the conditions under which a refund of tho high rate of taxation could be claimed will exist, and the prospect of relief thus hold out becomes in tho great majority of cases of no real avail. Had it been enacted that tho combined rate was not to exceed G per cent, on tho market value of the fhares at tho piesent time, then somo real relief would be given instead of a mere simulacrum of it. Could this not be done?"