UNEXPECTED WIN FOR THE TAXPAYER

Chronicle (Levin), 4 May 1946, Page 5

UNEXPECTED WIN FOR THE TAXPAYER

^ - • - « ! -Press Association

Bij Telegraph-

NEW PLYMOUTH, JUay 3. Contrary to fche common belief, exiempti'ons. for children will be allowed in the assessment of taxation for the year ended March 31, 1:946. Undcr recent legislat-ion providing for family bene•fits, the Cxemntion for wives is inereased from £50. to £100 with the result that the- taxpayers' total exemptions will be £5.0 greater than last year notwi.thstau.ding that lie is receiving universal family benefits for his children. For the year ended March 31, 1947, however, the legislati.on has excluded' exemptions for children with1 . the introduction of the universal family, benefits. ' The exemptions from taxation were amended to. pro vide for an increase in the exeniption for a taxpayer's wife to c.ffset the elimination of the £50 exemption in respect of each child dgpcndent upon the taxpayer. This has led manv taxpayers to believe that they would not be allowed the exemption for children for the year ended March 31, "1946, because they are now receiving the family bencflt. When it was pointed out to the Commissioner of Taxes, hlr. F. G. Oborn, at Wellington by telephone to-day, th.at there was confusiou among taxpayers c.oncerriing the application of the exemptions for the year ended Mareh 31, 1946, with partieular reference to the exemptions for children-, he expla-ined that the exemptions for that year were £200 fqr the 'taxpayer, £100- for his wife and £50 for eae-h eliild. He said the recent legislation provi'ded that exemptions for children should not apply if the taxpayer was in reccipt of the universal family ben.efit during the'income year on which the tax wras being levied. Th.e nniyersal family benefits, howeyer, were not paid during the year ended March 31, 1946.