INCOME TAX

Bay of Plenty Beacon, Volume 05, Issue 87, 5 August 1942, Page 5

INCOME TAX

I METHOD OF COLLECTION CHANGE UNLIKELY IN WARTIME The collection of income tax in New Zealand has always been made on the systems of assessment inr August or September, based on income of the 12 months ending on March ;n previous as shown in a return maide by the taxpayer in June. This assessed tax is payable in the weeks alter February 1 following the assessment, the latest date of payment being according to official announcement on the demand notice, generally a day in the first week of March.

With the big increase in number of; wage earners liable for tax'under war conditions, because of higher ratesi of pay and lower point of tax incidence, there is some speculation as to how many taxpayers are likely to be placed when the next due date Comes round. This speculation was mentioned recently by an executive of a big war production plant in the Wellington district.

In tlie particular plant with which he was associated, he; said, there were many workers avliosc total wages in the fiscal year would amount to ' several hundred pounds above tlie taxable minimum. These workers, lie said, would find that they were liable to- income tax dues of considerable size, even if they were entitled to allowances for wives and families. Many of the men, he said, Avould be facing taxation for the first time, and might not have realised tlie position in ttime to make; the requisite provision for it.

The executive suggested that some form of deduction on account of income tax might be made at source, under Government regulations. This

system had already been instituted in Australia, he said, and seemed to be quite workable.

AVhen the suggestion was 1 referred to the Commissioner of. Taxes, Mr J. M. Park, he said that the institution of such a scheme would be % beyond the capacity of the Land and Income 1 Tax Department at present.