EXCESS PROFITS TAX

Dominion, Volume 9, Issue 2853, 18 August 1916, Page 6

EXCESS PROFITS TAX

DETERMINATION OF STANDARD

INCOME

A GAZETTE NOTICE

The following notice appears in the . Gazette, published yesterday, instructing persons who. made excess profits last year to furnish certain iniormajtion to tho Commissioner of Taxes in ■order that the excess profits tax im- ■' posed, by tho Finance Act of last scsi ' sion may be assessed: — "Notice is hereby given that, in pursuance of the above (Finance) Act, every, person'and company having dc- ' rived excess 'profits as defined by the ' said Act during tho year ending March 31, 1916, is hereby required to notify . mo of his election relating to standard ■income and to make and furnish to me tho necessary returns and statements on tho forms provided (which may be .obtained at any. postal money, order office) on. or before October-7, 1916. . - 'JAnd notice is hereby given ; '..that >such returns, statements,, and notices \6hall, ill all cases b'o delivered at or .■'forwarded to :tlie offico of• the poinmis- ■ ysionetf .6f.'.'Taxes, in tho Government j Buildings, at Wellington. V ■ "In cases-where the taxpayer has al- . ready furnished the returns and state- ; ments required he need only notify me of his election. "In cases where annual balance- , . sheets and profit and loss accounts have •c been : prepared, copies of the same will bo accepted in' lieu of the returns and ..'.statements," Excess profits duty at the rate of 45 per cent, is-chargeable on all the income above tho "standard income" of the taxpayer earned during th,e year ended Marci 31, 1916. There are alternative methods of determining "standard income": (a) Average yearly assessable income'for the .three, years ended March 31, 1914; (b) average . assessable income for any two of these three years; (c) assessable iu- . .come for any one of these years; (d) • a sum equal to 7j per cent, of tho amount of capital employed bythe taxpayer in the production of his income, together with such additional sum (not exceeding £600) -as the Commissioner deems just and reasonable as remuneration of the .'personal exertion of the ' taxpayer in the production of his in- ■ come. It is provided that' the method prescribed in (d) shall be employed in all, cases where in the opinion of the Commissioner the standard income "cannot be ascertained by any of the throeVother prescribed methods, 1 The meaning of the above .Gazette, notice is that payors of the excess profits tax must make their "election," or choice, as to the method by which they desire • to have their standard income deter-