TRADE AND COMMERCE

Dominion, Volume 12, Issue 31, 31 October 1918, Page 7

TRADE AND COMMERCE

ANNUAL CONFERENCE OF ASSOCIATED CHAMBERS SOME INTERESTING REMITS Tho annual conference of the Association of i\"e\v Zealand Chambers of Commerce whs communced iu the Wellington Chamber of Commerce yesterday under the presidency of Mr. James Macintosh, of Wellington. The following delegates were present:— Dargavillo, Mr. ]{..E. Hornblow; Auckland, Mesai-G. Robert Burns and H. W. Hudson; Napier, Messrs. C. H. Edwards and H. L. Petersen; Hastings, Mr. T. Cliirkson; Taraimlsi (New Plymouth), Messrs. W. J. Pcnn ami l''ii:th; Feilding, Mr. J. S. Tingey; Wangaimi, Messrs. P. fligginbotlom and 11. Hague Smith; Palmcrstou North, Messrs. L. 11. Collinson and 1). H. Crabb; Masterton, Mr. Richard Brown; Wellington, Messrs. J. 6. Harkness, T. C. . Dawson, James M'Lellan and F. W. Man ton; Wellington Central. Messrs. C. 11. Luke, A. Leigh Hunt, T. Forsyth, and F. Holmes: Marlborough (Blenheim). Mr. .1. M. Lightfoot; Canterbury (Clirislchiirch), Messrs. P. Davidson, H. J. Marriner. and W. M. Tyersj South Canterbury (Timaru), Mi 1 . F. Biu-kas; Oamaru, Mr. P. IC. Ireland; Dunedin, Messrs. W. Gow, Oven, and J. r* Waters; Dajuievirke,-Mr. W. Doteon; Hokitike, Mi-. W. J. Butler; and Gisborne, Mr. S. S. Bean.

After the opening speech by the Prime Minister, reported elsewhore, the conference proceeded to consider a very formidable list of remits, many of which may be said to bo of national importance, dealing as they do with vital matters of concern to the commercial life of the community. Following is a list of remits carried:—

Amendments to Bankruptcy Act. Moved by the Canterbury and Wellington Central Chamber; "That the Government be again urged to amend the Bankruptcy Act by giving effoct to the recommendations made at conferences in 1909, 1915, and 1916." On the motion of Mr. W. Dobson (of Dannevirke), who emphasised the importance of tho remit, it was decided thift a deputation should wait upon the Government in connection with the amendment of-the Bankruptcy Act.

Preferential Trade. Moved by Hastings: "That former remits advocating 'preferential trading with tho Empire be again confirmed." ■ In moving the remit, Mr. T. Clarkson urged the importance of the remit. Only the other day he had jjot a. shook ou reading.in the paper the remarks of trie Hon. Mr. Asqnith at the Liberal Club, London, where ho practically advocated a. return to tho old order of ttungs.

.A Ministor of Commerce. Moved by Wellington Central:—"That remit, No. 39, 1917 conference, bo reaffirmed: 'That this conference recommends the Government to favourably consider the appointment of ft Minister of Commerce, advised by a council of experts.' " ■ . ,'

This motion was moved by Mr. Frauds Holmes; who said that a Minister of Commerce should be ft man in touch with all the Chambers of Commerce. Mr. Robert Burns, of Auckland, susge.-Hed strongly that the holder of Uio ofh'oo should bo a commercial man, and it should not be a political appointment. Commercial Agent in U.S.A.

Moved by Auckland:—"That in viow of present conditions and post-war problems ivhicii will, arise in connection with American tradu, it is desirable that Ne\y Zealand .should be officially represented in tho United States, and that the Government be urged to at once appoint a man of thorough business experience as its commercial representative at "Washington with whom the business community could at all times communicate, either direct or through tho Dominion Government." '■ ■'' ■ ■"■ •■■•■■■■■

In moving . the motion, Mr. Burns pointed out the great advantages of having a representative at Washington, eo that tlioy should have all information as to embargoes, and the matter of procuring licenses from tho American Government for the export of certain manufactures. Another speaker thought flat such u representative might include Canada, where it was now also neceesary to get licenses for tho export of certain goods. Customs Tariff. Wellington Central moved:—"Thah^ in anticipation of the possibility of the Imperial Government calling <.n Chambers of Commerce to confer on matters reiiiling to changes in Customs tariff find questions affecting commerce and shipping when war ceases, tho conference urges the Government to suggest to tiie Imperial authorities the desirability of arranging representation of Dominion Chambers of Commerce at such conference."

Income Tax. Moved by Napier:—"The Commissioner of 'i'nxes having circularised companies throughout the Dominion with a view to suggesting rolief from the hardship onlailed by the incidence of existing, taxation, this association urges upon the Government the necessity of amending the" Finance Act in the dire-rcion i-di-In moving the remit, Mr. C. 11. Edwards (Napier) gave instances where companies giving equal dividends prior to tho war had been differently affected. He "maintained that the taxation ft .present* hit the wrong man-the small man ccnerally. They read in the papers with Some -trepidation of the fall m Consols and the value of the German mark and the loss of millions of money it meant. They did not have to go that far—tliuy had ii here in New Zealand. On the motion of Mr. Burns (Auckland) it was decided that remits from Auckland and Canterbury on the same subject bo taken together. Ihe Auckland remit was as follow?:"Whereas profits derived from tho capital of individuals'invested in registered companies, corporations, or partnerships-, are subject io a much higher rate ot taxation than similar profits earned by similar capital invested in similar but unregistered industrial undertakings, and whoreas tho present heavy and probably increasingly heavy weight of taxation tho community will have to bear in the future renders it highly essential that the load be adjusted with the utmost possible fairness to individuals. this conference respectfully urges the_ Minister of Finance to apply to all incomes (without restriction an to amount or return) derived from capital iiivesled in registered undertaking? a like measure of graduation in taxation as is already porniierible hi. the■ case of ,incomo drawn from similar undertakings not so registered." ' The Canterbury resolution road as follows:—

"(1) For the purposes of this section 'private company' means a private company within' the meaning nf the Companies Act, 1008. 'Public company' means every other company within the lnwining of the principal Act except. .1 private company. . "(2) Every company, whether public or private, shall make returns to the Commissioner of all its shareholders and the capital subscribed, and the capital paid up by and the dividends paid or payable to each shareholder. "(3) For the, purpose- of roturns and assessments under (his Act, a private company filiall be deemed lo bo a partnership of its shareholders in proportion to their paid-up capital, and each shareholder shall bo deemed to bo a partner accordingly, mill the- company ehnll make returns as if its members were partner l , of a lirrn, and the partners be liablo for income tax in accordance with the provisions of sections 08 and J lO of the principal Act. "(\) Without limiliiiß the liability tin , income, lax of every public company under the other provisions ol' lhis-,01 , the principal Act, (ho Commissioner ifta.v, :f it is advantageous to the revenue, add to l;he nssesmblc income derived by any shareholder in any public company from all other snurces the dividends he Inis been paid or is entitled lo bo paid frnni that company and from any other null lie company, and such iotnl income- shall be. his assessable income: provided Mini the Commissioner in claiming tax from encli shareholder shall credit him iviMi the amount of lax paid or payable nv

such public company or companies in respect of tho amount of its or their Income equal to tho dividends paid or payable by it or them to such sluircliomer out of such income.

"(.")) Any shareholder of a jm*iic company' may, by notice in writing, apply tel tho Commissioner to assess him under the provisions <if the last preceding subsection, whereupon it shall bo the duty of tho Commissioner "to do ho, and to refund to .such shareholder any tax found to have been overpaid." Mr. 11. W. Hudson (Auckland) said that nominally the present taxation amounted to 7s. 6d. in the X on the divisible profits of a company; really, it worked out to nearly 9s. in the £, so that; it meant that a man lost practically half his income. Tlie present method of taxation was opposed to the fundamental principle of taxation—fitting the bunion to tho man's ability to bear it. He gave an illustration (is to tho way the taxation hit companics in comparison with its effect on private firms. In tho case of the roffistored company a man with a thirteenth elwiro in a company showing g. profit of MM was entitled to a thirteenth part of tho profit, viz., cESOO, in dividends or otherwise, but to-day be only received .£312 Mfc. out of that sha.ro. Tho rest went in taxation. In tho case of a pnvato firm (not a registered company), in which a man's share of profits was XSOO, the. amount he was taxed under the present system was .Els-hn would receive .C-185 oiit of tho .£SOO. Mr. Hudson gnvo a. critical review of the incidence of the taxation, pointed out anomalies and weaknesses, and suggested means whereby tho taxation might be made more equitable. J!'r. Tvers (Cbristchurch) thought a groat difficulty would be removed if private companies were taxed on the same basis as partnerships. He thought thero was a wide distinction between private and public companies. Iu the former casb not moro than twenty persons could be concerned in the onp company, and wore easily taxable as individuals. After a 'free discussion tho Napier and the Auckland remits on taxation were passed, and the Canterbury remit was referred to the executive to examine to see that it did not clash with tho others.

Royal Commission or Conference? Moved by Canterbury: "That the Government be recommended to forthwith appoint a Royal Commission or arranßo for , a. conference to iiiquiro into the proper principles and incidence of all taxation in Now Zealand, and to make recommendations as to all tho taxes, whether direct or imlireot, to bo levied for the year commencing April 1, 1919. Income Tax on War Loans. Moved by Wellington Central: "That conference' be requested to set up a special committee to report on tho advisability or otliknvifto of issuing war loans free of income tax." The following committee was appointed: Messrs. Owen, Tyens, Hudson, Paterson, and Luke. Another remit on the same subject troin Auckland was referred to tho committee. The conference will resume at 10 a.m. to-day. ■