Banking Companies Assessed. Section 14.

A banking company, the principle office of which is within the Colony, or which is principally carrying on business within the Colony, will be assessed on the amount of its capital actually paid up added to the amount of the accumulated undivided profits. This applies to the Bank of New Zealand, the National Bank of New Zealand, and the Colonial Bank of New Zealand. The provision by which other banks are taxed does not explain itself, but it was stated in the House of page 12 Representatives that the arrangement had the sanction of three eminent bankers. It may be said that it was arrived at, after various calculations had been worked out, in order to place foreign banks in a position as nearly as possible equal to that of colonial institutions. Banks are not liable to any further taxation under these Acts in respect of any property, real or otherwise.