THE PROPOSED TAXATION.

Temuka Leader, Issue 2240, 13 August 1891, Page 4

THE PROPOSED TAXATION.

(Own Correspondent Otago Daily Times.) Wellington, August 10.

A statement has found publication to the effect that if the proposed 1 method of taxation -should be adopted ,the Union ; .Steam<ShipCompany would remove their , headquarters : : from Dunedin to Sydney,, in or,der to. escape the heavy burden of taxation which under the Bill as it now stands would fall on all companies domiciled in New Zealand. I spoke to Mr James Mills on the subject to-day, when he informed me that no such decision had yet been aarived at by his directors; but that it was quite certain they would not readily: -submit to their company being singled, out for, severe taxation which their rivals and opponents escaped entirely through not being domiciled in New Zealand. He said the Union Company had no desire to shirk bearing its fair share of the public burden, but they were not . prepared ±o .do -so were privileged by a protection of quite the wrong kind—namely, protecting foreign traders against the local industry. He pointed out that the Union Company spend large sums of money in New Zealand, and provided a vast, amount of employment through having their headquarters in this colony, all of which would be lost to New Zealand if they were driven by unfair treatment' to remove elsewhere. He anticipated, -however, that J steps would be taken in committee to.correct the unfairness which at present was to be found in the ! provisions of the tax bill. 'lt is understood that some imiporjtank.amendmettts in ■.-, the,Land'and Income Assessment Bill will come down iato-morirow -or next day by Governor's Message, v One of them will be to increase the rate of taxation on absentees, as proposed: by Dr Newman. The other will be to make Crown tenants liable to income tax. As the bill now stands the Crown tenants c would escape, asithey were not made liable to land tax. I hear positively from several quarters that improvements without any exception will be exempted from taxation. It is estimated that even with this large concession the new taxation will bring in.'a much. la»ger-.sum jially counted upon. The income tax i will, it is found, catch a whole host of people and bodies at first overlooked; and - the result will •be a substantial addition, to the sun* originally named and the probable yield. Several members of the Opposition state that that-party intend to force the Government to fix the date when the new taxation shall come into force,