CRIPPLING CLUBS

New Zealand Times, Volume LIII, Issue 12622, 6 December 1926, Page 3

CRIPPLING CLUBS

TOTALISATOR TAXATION MODIFICATION SOUGHT CARNIVAL WEEK FIGURES An urgent plea for a modification of the present rate of totalisator taxation is advanced by the New Zealand Sports Protection League, the general secretary, of which has written to tho Minister for Finance upon the subject. It is alleged that the excessive taxation is crippling: racing and trotting clubs, and encouraging illegal betting. Legislation is asked for. “The league has/' the letter asserts, ‘'on several occasions represented to the Government that the excessive rate of taxation imposed on totalisator investments and dividends is having the effect of crippling clubs, encouraging illegal betting, and causing a steady decrease in the State revenue. BIG LOSS. “A noted example is found in the results of the Christchurch spring carnival. In December, 19?\, the dividend tax was increased from 6d to Is, and other increases imposed. Since then investments have steadily decreased, with the result that while in 19*20 the State received the sum of ,£28,4.62. it will, under the increased rate of taxation, this year, only receive ,£24,555, a loss of ,£3907. But the result on the two clubs concerned is even more disastrous. Their loss of revenue for the week is £18,632. "The Commissioner of Taxes recently stated that it 'was the policy of his department not to bo cripple the taxpayei as to make it difficult for him to produce a taxable income; but, on the other hand, to encourage and assist him to make more income, and eo produce more revenue for the State. Racing and trotting clubs provide the easiest of aIL means of collecting State revenue; but it is necessary for the Government to give them more encouragement than they are receiving at present if they are to continue to be such excellent tax collectors. BOOKMAKER SCORES,

c ‘lt ia also clear that the present restrictive legislation which gives the bookmaker a practical monopoly of all business outside the precincts of the course is a great disadvantage to both the State and the cluba. It is quite safe to estimate that tho amount invested on such races as the New Zealand Cup and the New Zealand Trotting Cup outside the totalisator was more than that placed on the machine. Neither the Government nor the clubs receive revenue from this scource. “I have been directed to bring these matters under your notice in order that Cabinet might consider the question of introducing legislation, both in the interests of the State and the Turf, which will modify the rate of taxation, and remove the present restrictions which so favour illegal methods." IMPRESSIVE FIGURES. In support of the arguments adduced tho following figures connected with the Canterbury meeting are quoted CARNIVAL WEEK. £ s. Totalisator investments, 1920... 599,217 0 Totalisator investments, 1926... 350,792 10 Decrease 248,424 10 Details showing taxation received by the State and racing and trotting clubs' share, 7£ per cent, on investments in parenthees : Season, 1920—2 J per cent on totalisator, 2.1 per cent, on dividend, £28,462 (£44,941). Season, 1926—2£ per cent, on totalisator, 5 per cent, on dividend, £24.555 (£•26,309). Decrease, £3907 (£18,632). CANTERBURY JOCKEY CLUB. Totalisator investments spring carnival week:—Year 1920. £340,141; 1921, £271,454: 1922, £259,925; 1923. £237,802; 1924. £237,210 10s; 1925, £207,934; 1926, £197,305. METROPOLITAN TROTTING CLUB. Totalisator investments spring carnival week :—Year 1920, £259,076; 1921, £225,476: 19*22, £221,943 : 1923, £210,436; 1924. £199.883 10s; 1925, £177,749 10s; 1926, £153,487 10s. CHRISTCHURCH SPRING CARNIVAL WEEK. Totalisator investments racing and trotting clubs: —Year 1920, £599,217; 1921, £496,930; 1922, £481,868; 1923, £418.238; 1924, £437,094; 1925, £385,683 10s; 1926, £350,792 10s.