"ENTERPRISE CRIPPLED"

Hawke's Bay Herald-Tribune, Issue 29, 18 February 1937, Page 9

"ENTERPRISE CRIPPLED"

Press Association.)

Complaints Made Against Company Tax

By TelByrsph—

CHRISTCHUR9H, Last Night. "The present rate of company tax compares with the British rate of 4s 9d and is perhaps the highest in the world. Such. a heavy impositioa must, in the . long run, have a crippling effect on our industrial iife, for there is iittle inducement to risk capital in new enterprises or spend money on improvements to existing factory equipment, when near* ly 40 per cent. of the earnings goes away in tax," said Mr W. H. E. Flint (ehairman of directors) in an address to the shareholders at the f orty-ninth annual general meeting of the New Zealand Refrigerating Company Ltd. Reviewing the company 's accounts, Mr Flint said the balance available for appropriation was £26,941 15s 3d less tnan last year. The compSny 's earnings were actually iarger than in the previous year, but the increase in the rate of income tax for companies to 7s 6d in .the pound, had necessitated setting aside a much larger amount than was required in the previou# year to meet the liability for the tax. Land tax had also absorbed an- additional £1114. The directors recommended a paymeut of the same dividend as last year, which was adopted. The retiring directors, Messrs W. H. E, Flint and E. Hay, were re-electcd.