THE BURDEN OF TAXATION.

Taranaki Daily News, 1 June 1922, Page 4

THE BURDEN OF TAXATION.

The letter by "Taxpayer,” which appears elsewhere in this issue, draws particular attention to a ■ subject that has been discussed at much length for some time past, namely, the injustice of the present system of taxing companies. There is no occasion to dwell upon the question of whether the people of New Zealand are paying more or less in taxation than those who reside in the Commton weal th of Australia, or even the inhabitants of the Homeland, and it is a pity that the Premier, in his speech at Feilding, should have referred to the relative taxation of two Dominions whose-circumstances, size and conditions are so much at variance. The taxpayers of New Zealand are concerned, and greatly so, with their own affairs, to the exclusion of seeking cold comfort in the misfortunes of others. It was also unfortunate that Mr. Massey’s statement did not fit in with the facts and figures which our correspondent supplies. That, however, is only a detail, but yet the figures quoted in connection with company taxation exhibit New Zealand in a very unfavorable light. In fact, the moral of these figures is too plain and convincing to be ignored, showing as they do that “the considered opinion of the Australian States is diametrically opposed to the unjust and arbitrary .system of (company) taxation, enforced in this country, with the object of relieving the taxing department of some of the trouble of assessment and collection., and with the result of gravely crippling industry and comanerce.” That is the crux of the position, but it will occur to all business men that if the officials of the taxation department cannot see their way to assess and collect income-tax from individual shareholders of companies without undue expense, then it is evident there is need for the appointment of a staff that will do what is essential to the welfare of the people of this country. There is absolutely no reason why any company shoiild be compelled to hand over half its earnings to the Government, merely because we are at the mercy of a department which, ‘by clinging to obsolete methods, blocks the way to a fair and just assessment of individual shareholders.