NATIONAL MUTUAL LIFE

Dominion, Volume 11, Issue 92, 11 January 1918, Page 7

NATIONAL MUTUAL LIFE

48th ANNUAL MEETING

TAXATION CRITICISED

The annual meeting'of members of the National Mutual Life Association of Australasia, Limited, was held at the head office, Melbourne, on Iho 28th ultimate, Mr. A, Newell presiding. In moving the adoption of the report and balance-sheet, tho chairman, said that the amount of new policies issued, £3,305,162, was £270,001) greater than the amount issued in'the. previous year. It was not their highest record; on three occasions they had reported a slightly larger new business, but they were in normal times, when the conditions were more favourable for expansion. The new annual premiums, however, £140,67!$ exceeded anything they had hitherto attained, and the averago sum under the new policies was much higher than any other year's average. Both of these were satisfactory features,' that indicated a decided improvement in tho class of business transacted. The total income was £1,770,196, nearly £109,000 mors than tho year before. ■ They had paid to members on their representatives for claims under policies, £846,497; of this amount no less <than £157,862 was paid for war claims to,the dependants of 784 men who have given their lives to maintain the'honour-of their country, and to preserve tho ideals of their civilisation, me total amount they had so paid during the last three years was £326,645, through the death of 1379 policy-holders. They , had added to the assurance fund, to be in-, vested, and so provided for their increased liabilities, £741,428. ' At the close of the year tho assurance fund amounted to £10,869,000. Of the amount added to the fund they had lent to tlio Governments in the various parts/of the Empire where they transaetelimsihess £031,0~D0, or over .70 per cent, to assist-in their war financies. Since the outbreak of war they had lent in this way over £1,000,000/ TAXATION. ■ Continuing, the chairman said there was art item in the reserve account he found difficult to explain. They had paid in taxes £29,743, or £7100 more than they paid in 1916. This was a levy on tho premiums or interest (according to the fancy of the local legislators) received at the different branches of the association. AVhy the levy was ninde ho had not been able to discover, r but he felt sure that it would not bo. made if"xne nature of' their business were understood. Under most schemes of taxation, associations that were not formed for the purpose of profit or gain were exempt. Tho description applied to mutual life companies ' to the most complete extent, and it seemed that this was recognised by the'draftors of the taxation Acts, for they were driven to invent a'definition of taxable income that should apply only to such companies. The result was that they were taxed on what was not income in any sense whatever. The. effect of the tax was to penalisoWerv member of the-commun: ity who did his duty by making provision for his dependants in the best and surest way that had ever been devised, .'namely, by securing a policy in'a mutual life company. .It ought riot to be necessary to ;'say. that the Wflolo Uf' their funds belonged \o the polic3'-holders exclusively,' and could bo used only for their benefit. Any deduction from these funds, therefore, was a direct charge on tho individual moraber, and ultimately on his dependants,, or, in other ' words, it was a tax on tho claims payable under tho policies. Surely such a tax was never intended, seeing that the bulk .of their funds was' contributed' by men with small estates. As evidence of this they had'; tho fact- that tho-average amount per policy paid in death claims this year was less'thanv£27s. J■ ■ . ONE OF THE SIX. • ■ It was : not necessary," added Mr. ■ Newell thaVhe shouljl call their'.attention to tiie growth of tho association's business, and resources; the accounts rthey had beforo -them were proof of that; but ho would like to j refer to a statement, recently published j by tho London Statist of the growth of British companies, as showing how they compared with their - fellows. 'Sixty-one companies were included in tho statement, and they were divided into sections, according to tlip. extent of their growth during the ton years 1905-1915. In tho first section, which contained Thoile that showed the largest growth, .there were only six companies, and thoy were one of. tho six, the youngest of them. They could, therefore, claim that they were in the very front rank of British companies. ■ : A.ZEALOUS STAFF. In couclusipn, tho chairman said their success had not been achieved, without hard work on the part of their officers and agents throughout the service. They had a very capable aiid zealous staff. Most of, them .were now, lie was proud to say, doing their duty in a wider sphere; with, hardly an exception every eligible man had enlisted. In some of their offices thero was' not a man left who was on the staff at the outbreak; : qf war, and only mon who were ineligible for military -service and women had taken their places. They were represented at every front; som of their.men had attained to important positions,,and all, ho was sure,wero doing good work for tho country. When tho time comes they should be glad to welcomo them back' to their old posts, but fivo of them .they knew would not come back. They had clone their duty.

The motion for the adoption of thn report and balance-sheet was seconded by Sir W. H.' Irvine, and carried. Tlio retiring directors, Sir W. H. Irvine and Mr. J. H. MaeFarland, M.A., LL.D., were reappointed, and the- retiring anditors , re-elected. The head office for Now Zealand is in Customhouse Quay, Wellington, with branches iu.i'Aucldnnd, Cliristcliurch, Diint'diii, Wanganui, and Napier, and agencies throughout the Dominion. 'Air. V. W. Nicholson is manager for New Zealand. '