EXCESS PROFITS TAX.

Lyttelton Times, Volume CXVII, Issue 17281, 23 September 1916, Page 10

EXCESS PROFITS TAX.

TO TOT KDITOB. Sir,—"With reference to a paragraph in your issuo of this morning, referring to the payment of excess war tax on his profits, your local does not explain to the outsider the true" position. If Mr Allen Doone had to pay £3OO excess war tax, he is a vepy lucky.man. Taking the excess war tax at 45 per cent, Mr l>oone made in this, the second year of the war, more profit than he did for any previous visit during the last, three years,' and, judging him on his statement that he had to put down a deposit (not payment) of £75, his provious visit,, at the incpnio. tax rate, must, have" netted .; him■ about £BOOO. What is there to complain of? _ How many managers would jump for joy in any business, and especially in melodrama, to make an excess profit of £650, or a total profit of £4OO. excluding the salary drawn by Mr Doono as an actor? And this is not a year's profit, but for his tour in New Zealand, I suppose practically six months. The paragraph states that his hooks were' taken possession of by members of Government; the usual proceeding is to send in a statement of the tour to the Government and have the books audited. On entering New Zealand the manager of a company is required to deposit a certain sum to' cover income tax on his profits, and any balance, or the whole if a profit has not been made, is returned to him. If a resident manager, no deposit as a rule is asked for. With reference to members of the company receiving salaTy over'and above a certain sum. the- manager is compelled to notify the Government, and they are charged income tax on the excess, the same as any private resident in New Zealand, with, I think, a larger margin allowed on account of keeping two homes, and they pay only for the the term they are in, New Zealand, because they are liable in Australia for the money earned, there. I. cannot be certain about excess war tax, but income tax is payable in Australia by theatrical companies and members receiving a salary above the exemption. The Auckland." Star" need have no fear of theatrical companies staying away from New Zealand because they are afraid of makirt.a; large profits in excess of previous; vistis. The theatrical proprietor is not built that way.— I am, etc., l , THEATRICAL.