TAX ON "BLITHE SPIRIT"

Taupo Times, Volume 11, Issue 66, 22 April 1953, Page 4

TAX ON "BLITHE SPIRIT"

DRAMATIC SOCIETY'S CONCERN Concern was expressed at the Taupo Dramatic Society 's recent Committee meeting when it was reported t'hat the Inland Revenue Department's Stamp Duties Branch had advised that entertainment tax must be paid on the takings for the performances of "Blithe Spirit" staged hy the Society during the ChristmasNew Year Carnival period. The reason given for this ruling was that there was no clause in the Society 's constitution providing for the staging of productions in aid of charitable or patriotic organisations, and that the Commissioner of Stamp Duties had accordingly decided that exemption from e nt er t a i nm p/y\ t tax could not be granted. As the Society was actual ly formed in the first instance for the express purpose of staging productions to raise money for the Taupo War Memorial Hall project, the decision that it is liable for tax on its takings comes as a shock to the members. The amount of entertainment tax claiimed by the Commissioner is £15. The whole of the nett proceeds of the "Blithe Spirit5" performances, amounting to £65 18/5, was paid to the War Memorial Hall Association, and later paid by them, with other Carnival money s, to the Town Board. The fact that there was no clause in the Society's constitution empowering iit to give performances for charitable or patriotic purposes was actually an oversight. The constitution happened to be based on that of another organisation that did not have such a clause. Had the Society's prcmoters known that there was any need for ,such a clause, one would have been included in the constitution. The Society feels that the demand for payment of tax on productions given for a patriotic purpose, by a Society formed for that express purpose, is most unjust and inequitable. The matter has been taken up with the N.Z. Drama Council, in the hope that it may be possible to establish that the tax is not actually payable.