Tax Changes Explanation

Press, Volume C, Issue 29509, 10 May 1961, Page 16

Tax Changes Explanation

(New Zealand Press Association)

WELLINGTON, May 9. P.A.Y.E. tax deduction tables in use since April 1 last year made no allowance for the £25 life insurance exemption formerly included, and wage and salary earners whose incomes were less than £lO4O a year should send in a return of income if they wished to claim exemption on insurance premiums paid on their own lives, the Commissioner of Inland Revenue (Mr F. R. Macken) said today. “A further point which should be noted this year is that the first £3O of interest from the Post Office, National Savings, trustee savings banks or New Zealand Government loans is exempt from both income and social security taxes.” said Mr Macken. “It will, of course, be appreciated that the £3O exemption is in respect of the total amount of interest received from these sources and that there is not a .-epara te £3O exemption for each class.” When sending in returns, most salary and wage earners would be able to use the shorter IRS form which had been printed in green to distinguish it from the more detailed black .printed individual return, IR3, said the Commissioner. The only wage and salary earners who should use the bigger IR3 return were those who received more than £3O interest from the Post Office and other sources mentioned, or who had other taxable income apart from wages and salary. Where there was no such income to declare, salary and wage earners whose incomes were less than £lO4O a year did not have to send in a return of income unless they wished to claim a refund, or unless specifically asked to do so by the department. If their tax deductions during the year had been more than required or if they had insurance or other exemptions to claim, they should send in a return using the wage and salary .earners’ IRS form. The Commissioner said the

salary and wage earners’ green form could also be t, had no other class of income liable to tax. This did not include universal superannuitants, however, who should use the black IR3 form, if they were required to furnish a return. Forms set out the circumstances in which universal superannuitants must furnish a return. The green print salary and

wage earners’ form must be furnished to the department v“.” dViv'iusa the IR3 form is September 7. The Commissioner said salary and wage earners could help the department to make early refunds of overpajd tax by making certain that all their tax deduction certificates were attached to their return of income when forwarding it to the department.