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NATIONAL MUTUAL LIFE.

48th ANNUAL MEETING. TAXATION CRITICISED. The annual meeting of members of the National Mutual Life Association of Australasia, Limited, was lield at the Head Ollice, Melbourne, on 28th ult., Mr A. Newell presiding. In moving the adoption of the report and balance-sheet, the chairman said that the amount of new policies issued, £3,505,102, was £270,000 greater than the amount issued in the previous year. It was not tlipir highest record; on tlire* occasions (hey had reported a slightly larger new business, but they were in normal times, when the conditions were more favorable for expansion. The new annual premium.-!, however, £140,072, exceeded anything they had hitherto attained, and the average sum assured under the new policies was much .higher than any other year's average. Both of these were satisfactory features, that indicated a decided improvement in th> class of business transacted. The total income was £1.770,100, nearly £109,003 more than the year before. They had paid to members or their representatives for claims under policies, £S4(i,4f)7; of this amount no less than £157,802 was paid for war claims to the dependents of 784 men who have given their lives to maintain the honor of their country, and to preserve the ideals of their civilisation. The total amount they had so paid during the last three years was C323,G45. through the death of 1379 policy holders. They had added to the assurance fund, to be invested, and so provided for their increased liabilities, £741,428. At the close of the year the assurance fund amounted to £lo.Sfi!),ono Of the amount added to the fund they had lent to the Governments in the various parts of the Empire where they transacted business £531.000, or over 70' per cent, to assist in their war finances Since the outbreak of war they had. lent m thu way over £1,000.000. ' ' TAXATION. Continuing, the chairman said there was an item in the reserve account he found difficult to explain. They had paid in taxes £20.743, or £I7OO niore than they paid-in 1010. This was a levy on the premiums or interest (according to the fum-v of the local legislators) received at the different branches of the assoeia. tion. Why the levy was made he had not been able to discover, but he fell sure that it would not be made if the native of their business were understood. Under most schemes of taxation, assoe.'atious (hat, were not formed for th* purpose of profit or gain were exempt The description applied to mutual life companies to the most complete exten*. and it seemed that this was recognised l>v the drafters of the taxation Acts, for they were driven to invent a definition of taxable income that should applv only to such companies. The result was that they were taxed on what wa s not income in any sense whatever. The effect of the tax was to penalise every member of the community who did hU duty by making provision for his dependents in .the best, and surest wav that had ever been devised, namely, by securing a policv in a mutual life com- ! nany. It ought not to be necessary 1 in sav that the whole of their funds belonged to the nolicv holders exclusivelv. nnd could be used only for the': benefit. Any deduction from thc.ie funds, therefore, was a direct charge on the individual member, and ultimately i.n his dependent-;, or. in other words it was a tnx on the claims payable undo* the policies. Purely such a tax wa : never intended, seeing that the bulk of their fund* was contributed bv men with small estates. As evidence of this they had the fact that the average amount per policy paid in death claims this ..'car was less than £275. It was not necessary, added Mr. Newell, 1 hat he should call their attention to the growth of the association's business and resources; the accounts they had before them were proof of that, hut he would like to refer to a statement rccentlv published by the London Statist of the growth ot British companies, as showing how they compared with their fellows. Sixty-one companies were included in the statement, and they were divided into sections, according to the extent of their growth during the ten years 1005-1015. In the first section, which contained tho3e that showed the largest growth, there were only six companies, and they were one ot the six. and youngest, of them. They could therefore claim that thev were in the very front rank, of British cornpanics. A ZEALOUS STAFF. In conclusion, the chairman said their success had not been achieved without hard work on the part of their officers nnd agents throughout the service. They had a very capable and zealous staff. Most of them were now, he was proud to say, doing their duty in a wide* pphere: with hardly an exception every jeligible man had enlisted. In some of their offices there was not a man left who was on the staff at the outbreak of war, and only men who were ineligible for military service and women had taken their places They were represented at every front; some of their men had attained important positions, and all, be was sun;, were doing good work tor their country. When the time comes they should be glad to welcome them :hack to their old posts, but five of them ' they knew would not come back. They had done (heir duty. The motion for tiie adoption of the report and balance-sheet was seconded by Sir W. H. Irvine, and carried. The retiring directors, Sir W. H. Irvine anfi Mr .j. H. MacFarland, M.A. LL.D., were reappointed, and the retiring auditors re-elected The New Zealand Directors are:—Mr A. K. Pcarce, Sir William Fraser, and Mr (i. F. Pcarce Mr J. E. M. Stewart is the District Manager. The head office for New Zealand is in Customhouse-quay, Yellington, with branches in Auckland. Christchurch, Dunedin, Wanganui, and Napier, and agencies throughout the Dominion. Mr. •F. W. Nicholson is manager for New Zealand.—Advt.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/TDN19180125.2.42

Bibliographic details
Ngā taipitopito pukapuka

Taranaki Daily News, 25 January 1918, Page 6

Word count
Tapeke kupu
1,010

NATIONAL MUTUAL LIFE. Taranaki Daily News, 25 January 1918, Page 6

NATIONAL MUTUAL LIFE. Taranaki Daily News, 25 January 1918, Page 6

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