RETURNS OF INCOME

Bay of Plenty Beacon, Volume 11, Issue 34, 28 May 1947, Page 5

RETURNS OF INCOME

PENALTIES 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 lands used for agricultural or pastoral purposes (irrespective of the value of such lands) or in receipt of profits or gains derived from the extraction, removal, or sale of minerals, timber or flax; also by all persons in receipt of income from salary, wages (including bonuses, overtime, allowances etc.) interest, rent, annuity, or other annual payment, or dividends or other profits from shares in companies where such income exceeds £2OO per annum, whether the income from interest, 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 exemption allowable by law they may not be liable for tax.. The following return forms are available: Form No. 3 —income derived from salary or wages. 3A—income derived from farming. 3B—income derived from business or profession. 4—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). The return should be completed and forwarded not later than the 3rd June to the branch office of the Land and Income Tax Department where the taxpayer’s records are filed. 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. In the absence of a return the Commissioner has power to make an assessment of an amount on which he considers tax ought to be levied. The acceptance of the estimated assessment does not, -however, absolve the taxpayer from the duty of furnishing a return. Persons required by law to furnish returns of income are cautioned that failure to supply- such returns renders them liable to prosecution under the penal clause of the Land and Income Tax Act, 1923.