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PEERS AS COMPANIES.

AN EXPLANATION. Whai is che o'ujeoi, oi forrning ihece companies? An explanation lias beeu given to the :'Daily Chr-onigie" by Mr , Gordon Hassell, a director oi Mesr.rs i Jordon and Son. Ltd., of Chanccry lane, company registration agents. j "1 company is not liable to snper- j j tax, and ihe ov/ner of shares in an estates company would onlv be liable for supei'-tox *on the amount he receiv- J ed as dividends from the ^ company,"' sa;d Mr Hassell. Freqnently th& owner of an e.stats is desirons of making provision for various membei'ii of bis i family, and. having transferred his -3s- > tafe to a company in consideration of J the allotment of fully-paid shares, hi is in a position to direct that certain c.f the shares sbcnld be allotted to varlous individuals in&tead of himself. As ' ! u vcenlt, the taxable income of the ! j owner may be reduced and assnnvng I that he does not die" within three vears, 1 a redncton of the amount of duties • pr.yable at his death is also effectea. "Obviouslv the possibility cf the daalh of one or moi'e of the altottees dying first sltould not be overlooked. At the same time, the owner must carefully consider the effect of making an outright gift of part of the shares. -as, or conrse, the allottee could not be coinpelled to surrendel' thern. Tt th& income -of the company should be less than the personal assessment cf the owner to ixtcome tax, at the date of incorporation, the amount of snch tax payable would be presumably reduced. S'o f'ar, however, as snper-tav is cojicernect, it is hardly b'kely tliat tliere ■would be any material saving in sucli tax, having regard to the provisons of 1 i the Fnanee Act of 1922." ! ! ADVANTAGE FOR CHILDREN. ■j It may be pointed out that this Act j presented the avoidance of the pay- ! ment of super-tax through the with- : holding of distribution of income of a 1 company which woukl otherwise be disi tributod Companieo can ro- longer osb j their .profitg for creating large surplus J funds to be turned mto capital by t-te ! issue or bonus shares. : Anoxher advantage,'' saia Mr &ac- : selt, "to be derived from tUniing ar ' estate into a company would be that. " where an estate owner has several chil- . dren oi grandchildren, the respectivb ' interests df the beneficiaries under his ! will could be more olearly defined. It • is generally considei'ed unnecessary to lixnit tlie liahility of the members J-i" the company, and all the other advantages of incorporation may be obtained by registering an unlimited company By adopting this course, payment of the .1- pe-r cent. capital duty on incorporaiion is avoided."

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/NOT19270319.2.6

Bibliographic details
Ngā taipitopito pukapuka

North Otago Times, Volume CVII, Issue 17748, 19 March 1927, Page 3

Word count
Tapeke kupu
452

PEERS AS COMPANIES. North Otago Times, Volume CVII, Issue 17748, 19 March 1927, Page 3

PEERS AS COMPANIES. North Otago Times, Volume CVII, Issue 17748, 19 March 1927, Page 3

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