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COMPANY INCOME TAX.

NO REDUCTION THIS YEAR. Company income tax was the subject of a statement by the Acting-Minister fur Finance (Sir Francis Bell) in Auckland. He said it was to be. hoped that income tax on companies would be reduced, although he did not know whether Jt would be possible this year. Regarding a suggestion that a change in the incidence from cam panics to I shareholders should be made, the Min-/ ister said that in hin opinion this was quite impossible. In the first place it would be very difficult to collect the tax, and, secondly, a large number of i people had invested in companies as they ihad invested in the Government’s 4$ per eent. stock—for the purpose of ascertaining what their true income would be, and at the same time without increasing the scale of their taxation. For This reason it would probably bo very unfair to alter the incidence, in addition, the collection of the tax from companies was I easier, and enabled a better estimate of the probable revenue to be made.

One thing to be borne in mind when considering this said the Minister, was the fact that, no companies had reduced their dividends by reason of the tax; what they had done wae to reduce the amount carried to reserve, or the amount of their undivided profits. “It ie> not trile in general to say,” eaid Sir Francis, “that the small investor re-

ceives a less dividend as a result of the income tax levied from a company. The agitation for >.a change in the incidence is largely by managers of companies who want to show larger annual nut returns, and it is not an agitation by shareholders in companies. It certainly is not carried on at the instigation oi large shareholders, ami any impression ihat I he small uharoholder is demanding the change is erroneous, been use his dividends have not been reduced by the incidence of the heavy income tax on companies.”

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/TDN19210923.2.13

Bibliographic details
Ngā taipitopito pukapuka

Taranaki Daily News, 23 September 1921, Page 3

Word count
Tapeke kupu
332

COMPANY INCOME TAX. Taranaki Daily News, 23 September 1921, Page 3

COMPANY INCOME TAX. Taranaki Daily News, 23 September 1921, Page 3

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