TAXATION’S TOLL

Sun (Auckland), Volume IV, Issue 1053, 18 August 1930, Page 10

TAXATION’S TOLL

TAKAPUNA JOCKEY CLUB’S ANNUAL MEETING

PRESIDENTIAL ADDRESS Although last season the Vakapuna Jockey Club was tompelled *to make a slight reduction in the total amount of stake-money, it still retains fourth position both in respect of the average stakes paid and the totalisator investments a day among the leading clubs in New Zealand. So said the Hon. E. W. Alison, president of the club, at the annual meeting today, when he also hinted there would be a further stake decrease this season, if the proposed increase in racing taxation is allowed to stand. In moving the adoption of the report and balance sheet, previously referred to in The Sun, the chairman said: Members will be pleased to know that the statement of accounts, though not as satisfactory as could be be desired, is more satisfactory than last year, as the year's working’ after writing off £784 10s 6d lor depreciation, shows a surplus of receipts over expenditure of £IBB lOs 2d. as against a loss of £B7O 2s the previous year. The totalisator turnover amounted to £163,286, as compared with £167,716 10s the preceding year—a decrease of £4,430 10s. Consequently, the net receipts from the totalisator which amounted to £15,784 17s 9d, as against £16,216 9s 3d the previous year, show a decrease of £431 11s Gd.

OPPRESSIVE TAXATION 1 might here refer to the oppressive and over-burdening taxation imposed upon racing clubs and the racing public, \Yhic-h is illustrated by reference t.o the figures set out in the club’s profit and loss account,! from which you will note that the sum paid by the club last season for Government taxation (less £250 refunded) amounted to £11,609 17s 9d. being £284 J7s 9d more than the total stakes of £11,325 paid away by the club last racing season. In addition to the £ 11,609 17s 9d paid as Government taxation by the club and its patrons, £149 17s 4d has to be iound for land and income-tax. and £593 9s 6d for local rates, making a total payment for taxes for the year of £12,353 4s 7d. And yet, in the face of this extreme taxation, the Government has decided to increase the totalisator tax by 2J per cent., and also to increase the amusement-tax. While the club has at all times endeavoured to provide and maintain high stakes, the committee will be compelled to go carefully into the question of finance before framing its 193031 programme. With a drop in totalisator receipts, a falling off in other sources of revenue, an increase in the Amusement-Tax, a proposed increase of 2? per cent in TotalisatorTax, combined with the existing depression and financial stringency, there will be no alternative but to reduce the stake money. NO EXEMPTION There is. however, no exemption from Government taxation, and it matters not how much a club loses, the Government taxation has to be paid in full as if a profit had been made. Such a system of taxation is surely inequitable and oppressive and should be amended. Some persons, while admitting that the proposed increase in totalisatortax is unfair and oppressive, contend such increase will not detrimentally affect clubs. That is not the view, however, which is held by the great body of representative racing men throughout the Dominion. Their views have been clearly expressed in representations made by the president of the Racing Conference to the Prime Minister. in which in support of his protest, the president adduced many sound, cogent and indisputable reasons. I think members will all be of the one mind that a deduction of 3s 4Ad in every pound put through the totalisator, will, to a certain extent, discourage the making of totalisator investments, and must reduce the amount of money available for investment. Consequently the revenue of clubs must be detrimentally affected.