LIABILITY OUTLINED

Bay of Plenty Beacon, Volume 2, Issue 193, 31 July 1940, Page 5

LIABILITY OUTLINED

SOCIAL SECURITY ANT) NATIONAL SECURITY CHARGES CHARGE ON INCOME In Monday's issue appeared an intimation from the Commissioner of

Taxes'with regard to the liability for Social Security and National Security Charges on income and the Social Security Registration Fee. National Security tax at the rate if Is in the £ is imposed in respect }f all income subject to the Social Security charge of Is in the £. It - ipplles to the same persons, trustees and companies as are liable for

-the latter charge and is payable 111 the some manner and on the. same dates. All the provisions of the Social Security Act, 1938, and the regulations made- thereunder, relating to the Social Security charge, are made applicable to the National Security tax. In effect the position is the same as if the Social Security" charge were increased from Id for every Is 8d (Is in the £) to Id for every lOd (2s in the £) and the Social Security and Security ■ charges are- to be collected on this basis accordingly. The increase in the charge, however, is limited, in respect of income other than salary or wages derived during the year ended 31st March 1940, to the August 1940 and subsequent quarterly instalments of the charge thereon. In respect of salaries and wages, the increase in thcdiarge is limited to amounts derived in respect of any

period after the 21st July, 19-10. Penalty for Non-payment. The three quarterly® instalments of the current year's Social Security charge, on income other than > salary or -wages, due on the Ist August and Ist November, 19-10, and Ist February, 1911 (computed on tlie basis of the old rate of Is in thq £ on income derived during the year ended 31st March 1940) will be payable at double the amount thereof

ill each ease arid will be subject to\ a penalty of 10 per cent on any amount not paid withm one month of the respective due dates. Payments on this basis Avi il be required in cases where only the May, 1910, instalment of the Social Security charge has been paid. Ihe immediate liability will be in respect of the instalment due on the Ist August* 1940, which will be subject to a 10 per cent penalty if not : paid within, one month of the due elate. In eases where the four quarterly instalments of the Social SecuriLy charga have already been paid in lull, the total "National Security tax payable* for the current year will be -an' amount equal to a total of the last three instalments of the Social, Security charge or three quarters of the total Social Security charge already paid in full. " r , Those Liable. Salaries and wages will be subject, to deduction or the charge at ths increased rate ol Id for every lOd or . part thereof from.'amounts derived in respect of any period after the 21st July 1940. The deductions aret to be made and accounted for under the same procedure as hitherto. All pei sons, male or female, ord-. inarily resident in New Zealand, who have attained the age of sixteen.; years, are liable ior the combined Social Security and National Security charges on income whether from salary or wages or from other sour-/ ces. In the case of persons in re-t ceipt of a total disability war pen-

sion, however, tlie liability is limited, :is previously, to the charge on salary or wages earned. Persons who are in doubt as to the extent of their liability are advised to make enquiry at the nearest Money-order office as early as possible during the jnonth of August, 1910, in order to avoid penalties for late payment of any amounts they may be liable to pay during that month. Registration. Fee. A quarterly instalment (ss) of the Social Security Registration Fee payable by male persons twenty years of age or over, becomes due on the Ist.August, 1940. Failure to pay any instalment of the fee renders m defaulter liable, on summary conviction, to a fine of £5. In addition a penalty of sixpence per month (with a maximum penalty of 2/'€) automatically accrues if payment is not made within one month of the due date. Any employer who employs for more than seven days a person who is more than one month in arrear with an instalment of the Registration Fee, is liable, on summary conviction, to a fine of £20. Employers may deduct the amount (Continued foot previous column)