TAX COMMISSION.

Hokitika Guardian, 14 May 1924, Page 3

TAX COMMISSION.

AUCKLA XI) F.A'II)F.NCE. [llT TELEORAPII — rF.It MESS ASSOCIATION-.] AUCKLAND. May 12. At the Taxation f'oinmis.sion. Mr Hudson, preisdent of the Chamber of Commerce, said that the Chamber suggested the following amendments to land and income tax: —(1) That the present practice of assessing public companies for income tax be amended, by being brought into line with that adopted in every other British community. by permitting deductions from tile companies’ assessable income, .instead of including thorn in that of individual shareholders; (2) on assessable income from any source whatever should the net rate of taxation he

place upon the same footing; (3) State and Municipal undertakings, in competition with private enterprise, should he subject to the same rate of taxation as privately owned ventures. He said that the practice in regard to company taxation was economically

unsound, as it involved the immediate appropriation by tbc State of a very large proportion of surplus profits, which otherwise would become available as working capital. Taxation of

the same profits, after passing out. of the shareholders’ hands, would permit the payment of better dividends and encourage re-investment. It was further suggested that a closer eombingout of small incomes would reveal a further substantial taxable amount. He suggested the reduction of exemption from £3OO to £2OO. He protested against the preference allowed public body’s anil other debentures, which was responsible for the diversion of much needed capital from productive* rural industries to relatively unproductive city amenities.