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SECTION 10.—TAXATION OF RACING AND TROTTING CLUBS 218. Any discussion of this subject must be prefaced by a statement that it does not in any way relate to — (a) Totalizator duty and dividend duty which are paid by the public and in respect of which the clubs are, in effect, no more than collecting agents for the Government; or to (b) Amusement-tax, which is paid either directly or indirectly by the public ; or to (c) Stakes-tax, which is paid by winning owners. We are dealing only with the income-tax payable by clubs and with the social security charges collected from them under the Social Security Act, 1938. Some account of the incidence of the income-tax liability is necessary. In the interests of brevity we abstain from giving particulars of the social security contributions paid. 219. For the 1945-46 racing year, which is the latest year for which we have any figures, three racing clubs paid over £1,500 in income-tax ; six paid between £9OO and £1,500; one paid between £SOO and £900; eight paid between £3OO and £500; nine paid between £l5O and £3OO ; four paid between £IOO and £l5O ; ten paid between £SO and £IOO ; nine paid from nothing to £SO, whilst thirty-four paid no income-tax at all. 220. Of the sum of £192,121 paid by all the racing clubs, £104,000 was paid by seven clubs. The principal contributors were the Auckland Racing Club, £48,477 ; Avondale Racing Club, £12,258 ; Canterbury Jockey Club, £11,324; Wellington Racing Club, £8,354. The next highest contributor was the Hawke's Bay Jockey Club, which paid £1,413. The marked difference between the sum paid by the lowest contributor of the high-tax-paying group and the sum paid in tax by the highest contributor of the lower-tax-paying group is a striking feature. It indicates the class of racing club which will benefit most from any remission in taxation. 221. The trotting clubs show similar divergences. For the 1946-47 season of an aggregate sum of £36,666 paid by all trotting clubs, five clubs paid £32,292. The Auckland Trotting Club paid £11,418 in income-tax, the New Zealand Metropolitan Trotting Club paid £10,004, and the New Brighton Trotting Club paid £5,173. The next highest -contributor was the Canterbury Park Trotting Club, which paid £3,135. It was followed by the Wellington Trotting Club, which paid £2,562. Two clubs paid between £I,OOO and £1,150; two clubs paid between £3OO and £350; three clubs paid between £2OO and £300; three paid between £IOO and £2OO, whilst six paid less than £IOO. Eight paid no