COMPANY MEETING
UNION BANK OF AUSTRALIA LIMITED
THE CENTENARY YEAR
THE annual general meeting of the Union Bank of Australia Limited, was held on January 31st, at 71 Cornhill, London, E.C.
Major-General Sir John H. Davidson K.C.M.G., C.B., D.S.O. (the Chairman) first drew attention to the fact that the zsoth anni- versary of British settlement in Australia was celebrated last Wednesday, and said he felt sure that they would all wish to send out to Australia their message of congratulation and their sincere wish for their future prosperity.
The present meeting was the tooth annual general meeting of the Bank. During that long span of one hundred years, weathering every period of adversity and depression, the Union Bank had consistently provided service for the community, confidence for its depositors, and the unbroken payment of dividends for its share- holders-a record of which they might justifiably be proud.
CRIPPLING TAXATION.
A subject to which he wished to draw particular attention was the heavy and rising expenditure over which they had no control. Taxation in Australia was very heavy, but in New Zealand it was altogether crippling. In the Dominion the basis of taxation which had been in existence for the past 40 years had really no relation to profits earned. The total assets and liabilities in New Zealand were added together, and a profit of I per cent. was arbitrarily assessed on this aggregate figure. This assumed profit was subjected now to an income tax of 7s. 6d. in the £. The resulting levy, plus land tax, and after allowing for all tax deductions, amounted to between 16s. and 17s. in the £ of the net profits. It was therefore no exaggeration to describe the effect of this taxation as crippling, and there would be no justification for remaining in New Zealand did they not feel a sense of responsibility towards the country itself, and had faith in the justice of the Government. While the tax remained at a moderate level, there remained a moderate profit, but the raising of the tax to 7s. 6d. by the present Government removed all chance of securing a reasonable return.
Taxes in Australia remained at a high level, and the Bank was subjected in this country also to the National Defence Contribution Tax, which was assessed on the profits arising from Australia and New Zealand as well as from the United Kingdom.
The net profit for the year was £254,383, and there was a total available of £404247, 35 compared with £366,864 last year. It was gratifying that it was possible to declare a final dividend of 4 per cent., less tax, making 7 per cent., less tax, for the year.
The report was unanimously adopted, and a hearty vote of thanks was passed to the Chairman and directors, management and staff.
Previous page
