TAX COMMISSION.

Hokitika Guardian, 16 May 1924, Page 1

TAX COMMISSION.

SAWMIDLER GIVES EVIDENCE. [jlY TEIjEGHATH—FEU PItESS ASSOCIATION.] WELLINGTON, Alay 14. Before the Taxation Commission, A. Seed, secretary to the Dominion Sawmillers’ Association, presented a statement' which set out that the tax on companies’ profits should he levied on the shareholders, or tho actual recipients of income derived from surh profits as individuals. The Association supported the contention that by nature of there being a large avenue of gilt-edged, tax free, investments (Government loan), and probably a larger avenue of lightly taxed investment local body, lands and company debentures), not only were wealthy investors able to escape their just contribution to the State and thus place a heavier burden upon companies and those in receipt of “earned income," but the development of the Dominion and community was retarded l»v discouraging investment in industries and the development ol activities. Several factors of the present assessment were more severe ill their incidence upon the sawniilling industry than upon any other industry. This was due to the fact that sawmillers were dealing with wasting assets, not only in the bush, but in the mill, and, in fact, on every item on which capital was expended, with rlie result that the industry was suffering a distinct injustice.

Witness added that the unfairness of the present position would press unequally on dillereni sawmillers. Those wifi) bad a comparatively short period to run would feel it most heavily, whilst to those who had a long period of cutting in sight. it would not lie nearly so serious. Tile inclusion of tramways in 'the land valuation would furthermore result in some being locally rated on such tramways values while others situated where rating on unimproved value obtained, would escape the charge. There was now no way by which dcpreciation, and writing ofl their whole capital cost in the year they ceased to be used could bo done. H a miller were allowed to write ~jf exactly the correct amount of tramways each year, he would still continue to pay liis just .share of income tax. for such writing, off would merely ensure that liis actual profits were disclosed each year and in the final year lie would also show a profit instead ol the loss il the whole ol the tramways wore written off in the year of their abandonment. Substantially tile same arguments applied to buildings. There was an additional hardship that a miller was compelled by law to provide accommodation for workers, and till such buildings were just as rapidly a vanishing asset as tramways.