TAX DEMANDS

Bay of Plenty Beacon, Volume 5, Issue 8, 26 January 1942, Page 5

TAX DEMANDS

ISSUED THIS WEEK

MANY LIABLE NOW CALLED UP

Many men who received their ttax assessments Inst November and have since been called up lor service in the National Military Reserve will be among those who receive taxation demands when these are issued throughout New Zealand this week. Payments will be due on February 12, and after the addition of the customary 21 days, the final day lor payment will be March 5.

Besides ordinary income tax, excess profit tax will also be included in the sums demanded. The total estimated yield for the year, as shown in the Budget last July, is £1(5,100,000, and of this amount, £4,411,000 had been collected by the end of December. Although the flow of pavments has since continued, in advance of the demands, it is probable that all but a small part of the remaining £11,086,000 will be paid during February and the first week in March.

Last year the yield from income tax jumped sharply to £15,/20,000, a rise of £5,449,000 over the previous year, and the current year's total sets an all-time record for the Dominion. It is also possible that the receipts this year, like those of 194041 may be again in excess of the Budget estimate, thought, not to fhe same extent, last year's unanticipated gain being £2,000,000.

As the tax now to he collected is on incomc earned in the year ended last March, the recent large call-up of men for service docs not affect, the position; this effect will be felt in the coming j'ear. Of the payments already made the major portion represents proceeds from companies and probably largely from importing houses, which at present have their stocks depleted and their bank balances proportionately expanded. It is stated that the average manufacturing concern has fairly considerable stocks and is therefore, less likely to have paid before the due date. Australian Procedure In Australia men called up for military service have been asked by the authorities tot make weekly provision to meet taxation liabilities on account of civilian income earned in

the last financial year. They have "been informed that tliey will receive demands for income and war taxes in the ordinary way, as in New Zealand, and have also been told that if difficulty is experienced in meeting the liability when itl falls due an extension of time may be arranged. Regarding deductions form military pay, an Act recently passed in Australia exempted from both income and war tax the allowances paid to soldiers' dependents. As a result, all military ranks below that of corporal now enjoy freedom from botlh taxes: unless they have income ether than their military pay. In cases of corporals and all higher .ranks a compulsory instalment deduction will be \made each pay day for both income and war tax purposes.