Council tax seen as ‘rip off’
PA Tauranga Taxing of town councillors’ meeting allowances may reduce people’s interest in standing for local government, said a Tauranga county councillor, Mrs Nancy Merriman. “We are already receiving a pittance — and now we are going to be taxed,” she told a council committee meeting. The county treasurer, Mr Bill Davies, said the Inland Revenue Department had told the council that about a third of the allowance was taxable and had asked it to recover this tax from April 1.
Cr Neville Wickham said some councillors might as well not be getting paid at all. “We are being ripped off. I would rather be here for nothing than to see the tax people take even more off me,” he said.
Mr Eric Pickering, technical section director of the Inland Revenue
Department, said no change had been made recently to rules on taxation of councillors’ allowances.
Without checking with the Tauranga Inland Revenue office he could only assume the council had not been collecting tax on the allowance, he said.
All cash allowances are taxable unless the Inland Revenue Department rules otherwise.
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Press, 6 February 1986, Page 22
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187Council tax seen as ‘rip off’ Press, 6 February 1986, Page 22
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