R.S.A. PRESIDENT ON TAXATION FAULTS

Chronicle (Levin), 6 September 1947, Page 4

R.S.A. PRESIDENT ON TAXATION FAULTS

1 * ■ "From the large number of inquiries being made at the R.S.A. offiees, it appears that returned servicemen and women imagine they were not liable for taxatioft during their service overseas, " said the president of the association, Mr. A. P. Postlewaite, in an interview. Many had been surprised'' to learn that, though they were exempt from income tax and social security charges in respect of Army pav and allowances, they were not exempt from taxation in respect of other income. "There is 110 reasou why the Cornrais" sioner of Taxes should not have uotilied every returned nian, immediately 011 his release from ihe armed forces, of his liability for taxation," Mr. Postlewaite said. " Failure to do so has involved many of tliem in financial hardship during the period they should be assisted in rehabiiitation. Further, when the commissioner makes a default assessment from conipiled departmental estimates, it should be appreciated that when a nuu«i has served several years overseas he cannot be wholly respousible if his linancial aft'airs have not been properlv kept during his absenee. "It is not general ly known thai there is grpat discriinination between men of the first and second world wars concerning total disability- war pen sions. A total disability pensioner of the first war is exempt from socitu security charges 011 all income othei than salary and wages, whereas pensioners of the second war receiving a total disability pension are not exempted. ' ' The Commissioner of Taxes is, oi' course, empowered by the Act to reniit income or grant relief if payment would cause hiardship. In the exercise of his discretion he would require satisfactory evidsnce of.The applicaut's financial position, a complete statement of assets and liabilities, prospects of employment and possible ivages and ' other earnings. "It is not siiggested that the commissioner would not be sympathetic in such c'ases, but why should there Oe need for such discrimination at all?" asked Mr. Postlewaite in conclusion.