BRITISH MEAT TRADE

Dominion, Volume 12, Issue 202, 21 May 1919, Page 10

BRITISH MEAT TRADE

FIRMS DEIVEN ABHOAD' BY. TAXATION. At the annual-meeting of Welson Brothers (Limited) recently the chairman reported that the board had just sold the company's freezing works in New Zeaand the stores and organisation of tho .Colonial Consignment and Distributing Company (Limited). The effect of this sale, wo understand (says tho Loudon "Times"), will be that the business involved will no longer bo directed from this country, end that the Exchequer will collect no further taxation on the profits.

Now that the taxation has reached so high a figure ill this country, it is urged, a British company engaged in the meat industry on a world scale is placed at an impossible disadvantage compared with greal foreign competitors, and firms wholly ' British'in origin and interest have been compelled to transfer their organisation and capital abroad. It is such a firm which has bought up'the assets disposed of by .Nelson Brothers. The 'situation was summed up by Mr. Harold Nelson, who pointed out to his shareholders' that the foreigner could denl_ in our markets without taxation, whereas the British registered company was taxed both by the Imperial and hi the colonial Governments. Tho.American Meat Trust pays American taxes on the business the companies do in the United States, but. if they turn their business outside the Slates" into foreign companies and do not take the profits to the United States they.are free from taxation by their own Government, although the business is controlled from the United States.

The net result, we nre informed, is that on the greater portion of tho business with England from their works outside the United States, the Trust companies pay no British taxation whatever', and on the remainder they pay only a trifling sum compared" with what a British company would have to pay. On the other hand, a British company shipping meat to England is subject to income tax ni: Die. rate o' (is. in the pound, super-lax and excess profits duty.