RETURNS OF INCOME

Bay of Plenty Beacon, Volume 4, Issue 307, 19 May 1941, Page 5

RETURNS OF INCOME

PENALTY FOR NEGLECT

Returns of income are required to be furnished by all companies and persons in business,, or in receipt of profits or gains; derived from the use or occupation, of all lands used for agricultural or pastoral purposes (irrespective of the value of such lands) or in receipt of profits or gains deprived from the extraction, removal, or sale of minerals, or flax; also by all persons in receipt of income from salary, wages (including bonuses, overtime, allowances, &c ), interest, rent,, annuity or other annual payment,, or dividends or other profits from shares in companies where such income exceeds £200 per annum, whethe; the income from inlerest, rent, annuity, or dividends is derived from a source within New Zealand or beyond New Zealand, Returns are required annually from such persons notwithstanding that by reason of the special exemptions allowable by, law they may not be liable for tax. The following return forms are available : Form No. 3 —Where income derived fiom salary or wages. Form No. 3A; —Where income derived from farming. Form No. 3R— Where) income derived from business or profession. Form No. 4 —Where income derived by a company. In the case of a person who derives income from farming and also from a profession or trading or manufacturing concern it will be necessary to furnish two returns (forms 3A and 3B). Farmers: Particular attention is drawn to the fact that all farmers must now make income tax returns on form No. 3A, whatever the unimproved value of the land farmed. The return should be completed and forwarded tc the Commissioner of Taxes, Wellington,, Ci.3, on or be-, fore the 2nd June. If for any reason the return cannot be furnished by the prescribed date application should be made for an extension of time. Where returns are accepted compiled to a date subsequent to the 31st March, they should be furnished within two months of that date. Any person required by law to furnish a return and neglecting to do so is liable on conviction to a penalty not exceeding £100. Neglect to furnish returns at the prescribed time not only renders taxpayers liable to prosecution, but also results in many cases-in an as cessment of considerably more tax tahn would otherwise be payable. In the absence of a return the Department has power to make an assessment of an amount on which it is considered tax ought to be levied. The acceptance of the estimated assessment does not, however, absolve the taxpayer from the duty of furnishing a return. Reports of prosecutions for failure to make returns in the past should be taken as a warning, and all per sons liable to furnish returns are therefore advised in their own interests to forward such returns on or before the 2nd June.