INCOME TAX

Dominion, Volume 14, Issue 131, 26 February 1921, Page 6

INCOME TAX

A CONCESSION MADE PENALTY FOR DELAYED PAYMENT The Prime Minister yesterday announced a concession to those payers of income tax who are- unable to make the full payment by Monday next, the due date. The amended scale of penalty provided by the legislation of lust year for next year’s taxation is to be.iiade applicable to the taxation now due, the effect of this being to reduce from 10 per cent, to 5 per cent, the penalty for delaying payment for three months. “It is impossible, without very seriously interfering with klie Domin/bn’s finances, to give effect to the suggestion, which hus been put forward that half of the income tax should be collected now, that is, at the end of the financial year, and the other half during the next financial year,” said tho Prime Minister. '“But we are very anxious to avoid hardship to taxpayers who may- have difficulty in meeting the claims to which they are liable for taxation purposes. I have arranged that the reduction in the penalty tax, which was provided for by Y.-ast session’s Land and Income Tax Amendment Act, shall apply to the payments of income tax which are now being made; that is, a person failing to pay the tax On Monday would have only 5 per cent, instead of 10 per cent, added. If he failed to pay within three months of the due date, viz., February 7, he would have 71- per cent, added, and if he failed to pay within six months of the due date he would have 10 per cent, added, i.e., he could have just short of six months" to pay the. tax at a cost of 7J per cent, of the amount of tax.” In reply to a question regarding the endorsement that was one of the principal causes of complaint in connection with deferred payment, the Prime Minister «aid that endorsement was not now essential, and taxpayers affected had been so advised.