BANKS’ REPRISALS

Hokitika Guardian, 4 September 1930, Page 3

BANKS’ REPRISALS

CHARGES FOR ACCOUNTS. DOUBLED. AND 10s NOTES CURTAILED. (By Telegraph—Press Association). WELLINGTON, September 3. The Chairman of . the. Associated Banks announces that as the result oi the/.Goyprnment’s action in increasing tiib uoto tax from three per cent, u four and a-half per cent., per annum,. i 1 lias-beeii,: denied to curtail the issue oj 10s notes. Silver, however, will be avail able in lien thereof. The Chairman said':—The rate of note tax is prohibitive, and while it remains on the Statute Book, the banks will he conducting their note issues at a very substantial loss. If, and when, the rate of note tax is reduced from four and a-half to three per cent, per annum, favourable consideration will lie given to the question of again circulating 10s notes.

The Chairman adds:—“The Government is well aware of the fact that the banks are at present paying income tax on considerably greater incomes than they would do if they \ycre taxed as ordinary companies. Jii other words, the. actual incomes of ,the banks are much less than those arrived at. by the arbitrary method laid down in Section 91 of the Land and Income Tax Act,-1923, already referred to; and, furthermore, the Government on it own initiative, called for rewhich have been furnished, showing tlie income, .of the individual banks if they were taxed for income tax- purposes as ordinary companies. Tlio returns furnished disclose that the banks are paying income tax on larger incomes than they would do if they returned their actual profits in their income tax returns; but, nevertheless, the Commissioner of Taxes has intimated that the present method of assessing the banks for income tax purposes-is .hot to be altered. As regards land tax, the banks are in an unfavourable position, and are most unfairly required to pay tax at tlio maximum rate on the aggregate unimproved, value of their numerous city and country braneehs. ’’