TRADE UNION FUNDS

Hokitika Guardian, 21 December 1932, Page 7

TRADE UNION FUNDS

INCO.uE TAX ASSESSMENT. FRIENDLY SOCIETIES CONCERNED. WEEDING TON, Dee, 20. One of the largest trade unions in the Dominion lias received a substantial assessment for income tax for t'.ie first time in its history. Thin action by the Laud and Income Tax Department lias caused considerable interest in trade union and friendly society circles.

The organisation concerned, in common with many other trade unions, has created reserve funds, which have been invested in gilt-edged stocks and in property. It is uoon income, derived from these sources that the department is claiming income tax, and it is understood that in some exceptional cases retrospective demands are being made over the last two year's. A portion of the organisation’s investments constitute a definite reserve for «•' death benefit fund, and it is- probable that tlie official claim for taxation will he strongly contested on that ground. The development covers an even wider field, as the department bases its claim on an interpretation of the law which onlv exempts from taxation such income of a trade union or friendly society as is net derived' outside trading. The accumulated funds of the friendly societies of the Dominion were returned this year at a total of £4,277,71 o. Of this sum, the amount placed on investment at interest is £3.664,776, and the net interest earned, subject to luxation according to the official reading of the law, is £178,9fi0.