PROFITS TAX

Hawke's Bay Herald-Tribune, Issue 129, 17 June 1937, Page 5

PROFITS TAX

—Presa Assn.-

Terms of New British Measure FIVE & FOUR PER CENT.

(By Tctegraph

-Copyright.)

(Eeceived 17, 12.30 p.m.) EUGBY, June 16. The terms of the new profits tax, to replace the withdrawn national defenee contribution, have been issued, and the necessary ways and means resolution will be moved by the Chancellor of the Exchequer on Monday. ' A tax at 5 per cent. for companiea and 4 per cent. for businesses carried on by individuals will be charged on profits arising in a five-years' period from April last, The tax will not apply to professions, offices or employcnents. Subject to the necessary adaptation, profits will be determined on the same lines as for the purposes of income-tax. The tax will not be chargeable when profits do not exceed £2000; where they exceed that figure, but do not exceed £12,000, abatement will be allowed of one-fifth of the amount by which the profits fall short of £12,000, Provision will be made for remission of the tax, in whole or part, in cases where the commissioners for special arqas, eertify iv. to be expedient for the purpose of establishing industrial undertakings in those areas that relief be given. The tax will he deducted in computing the profits in trade or business for the purposes of income-tax. No calcqlation of capital will ' be necessary for any purpose connected with the tax. It is estioiated that, in a full year the tax will produce £25,000,000. The Press commends the new tax as simple and straightforwaTd and an improvement on the one dropped. The Telegraph points out that taxation of growth of profits gives way to taxation of all protfits, so that recovering trades and new enterprises will not be special victims, and businesses will not be left in a state of uncertainty regarding the amount to be paid.