TAXATION CRITICISM.

Taranaki Central Press, Volume IV, Issue 415, 23 April 1937, Page 5

TAXATION CRITICISM.

UNFAIRNESS OF INCIDENCE. Depression on Stock Exchange. Press Association —Copyright. (Received April 23, 2.5 p.m.) London, April 22. The Times’s City Editor and other authorities consider that it will be a long time before the markets recover their poise. Criticism is chiefly directed at the unfairness of the incidence of the Budget Tax. Not onTy does it penalise the “recovery” trades, but also it allows shareholders in companies domiciled abroad to escape. Thus the majority of the South African gold mining companies are not taxed, while the West African and, Rhodesian are liable. The Zinc Corporation is liable, while Broken Hills are not affected. The anomaly is reflected in the former’s shares, which have declined ten shillings. The City expects that one effect of the tax will be to lead many companies operating abroad to transfer their domicile from England. The Stock Exchange remains depressed. The Paris Bourse is weak. Political uneasiness, labour troubles and bad trading figures have affected conflidence.