BRITISH MEAT TRADE.

Taihape Daily Times, 23 May 1919, Page 5

BRITISH MEAT TRADE.

FIRMS DRJtVEN) ABROAD pY

TAXATION.

At ihe annual meeting of Nelson Brothers (Limited) recently, the chairman reported that, -the Board had just, sold the company’s freezing works in New Zealand, and the stores and organisation of the Colonial Consignment and Distributing Company (Limited). The effect of this sale, wc understand (says the London Times). will b" that the business involved will no longer be directed from this country, and that the exchequer will collect no further taxation on the profits. Now that taxation has reached so high a figure in this country, it is urged, a British Company engaged in the meat industry on a world scale is placed at * an impossible disadvantage compared with great foreign competitors, and linns wholly British in origin and interest have been compelled to transfer their organisation and capital abroad. If is such a firm which has bought up the assets disposed of by Nelson Bros. The situation was summed up by Mr Harold Nelson who pointed out to his shareholders that the foreigner could .leal in our markets without taxation, whereas the British registered company was taxed both by the Imperial and by the colonial Governments. The American Meat Trust

pays American taxes on the business the companies do in the United States, but if they turn their business outside the Stales into foreign companies, and do not take the profits to the United States, they are free from Taxation by their own Government, although the business is controlled from the United States. The net result, wo are in-

formed, is that on the greater portion of the business with England from their works outside the United States, the Trust companies pay no British taxation whatever, and on the remainder they pay only a trifling sum, compared with what a British company would have to pay. On the other hand, a British company shipping meat to England is subject to income .tax at the rate of 6/ in the £l, super tax, and excess profits duty.