DECISIONS ANNOUNCED

Evening Post, Volume CXV, Issue 74, 29 March 1933, Page 8

DECISIONS ANNOUNCED

FURTHER EXEMPTIONS

Several decisions, under the Act have already been made by the Minister of Finance (the Rt. Hon. J. G. Coatesj, and these were gazetted today:— The following persons need not be licensed under the Act:— (a) Dentists making dentures or similar articles. (b) -Opticians making or fitting spectacles or similar articles. (c) Persons engaged in the bona £de repair, alteration, or renovation "c; goods, provided that they carry on such work only. For the purposes of this paragraph a person shall be deemed to be engaged in the bona fide repair, alteration, or renovation of goods if he manufactures parts of articles which require repair, alteration, or renovation, and incorporates such parts in those articles. In such cases sales tax shall be payable on the sale value of the materials used in the manufacture of such parts and not on the sale value of those parts. For the purposes of this paragraph a person shall not be deemed to be engaged in the bona fide repair, alteration, or renovation of goods if he manufactures parts of articles which require repair, alteration, or renovation, and sells them to another person to be incorporated by that other person in such articles. Such parts of articles shall be liable to sales tax under paragraphs (a) or (b) (as the case may be) of sub-section (1) of section 11 of the Act. ' (d) A person manufacturing taxable goods who satisfies the Collector that the total sale value of the- taxable goods manufactured by him during the last financial year of his business did not exceed £500, and that the estimated value of the taxable goods likely to be manufactured by him during the current financial year is not expected to exceed that sum, provided that this exemption shall not apply to any person unless he is the holder of a certificate of exemption for the time being in force issued to him by the collector of Sales tax upon application made in a form to be supplied by the s collector. (c) A wholesaler who satisfies the collector that the total sale value of taxable goods sold by him during the last financial year of his business did not exced £500, and that the estimated value of the taxable goods likely to be sold by him duriug the current financial year is not expected to exceed that sum, provided that this exemption shall not apply to any person unless he is the holder' of a certificate of exemption for the time being in force issued to him by the collector of sales tax upon application made in a form to be supplied by the collector. (f) Persons whose manufacturing operations consist only of one or more of the following:— (i) The breaking down or reducing the strength of spirits. (ii) The manufacture of ice. (iii) The duplicating or typing of letters, (iv) The writing of showcards by hand. (v) The developing and printing of photographs. .■'.'"'' LICENSING CONDITIONS. When theVfollowing conditions apply, viz.:— • ■ ■ ;' (a) When taxable goods' for use as materials in- the manufacture of goods are supplied by a wholesaler or a retailer to a person (other thfcn a manufacturer whose premises are registered under the Factories Act, 1921-22); and • (b) Such taxable goods remain the property of the wholesaler or retailer; and (c) Such person does not manufacture goods otherwise than from materials so supplied as aforesaid); and ' (d) Taxable goods are manufactured from such materials and delivered to the wholesaler or retailer —the person manufacturing the taxable goods will not be required to be licensed as a wholesaler or as a manufacturing retailer. The taxable goods so manufactured will be regarded as having, been manufactured by the wholesaler or retailer who supplied the materials, and he will be required to be licensed under the Act. ■ ', ■ When the following conditions apply, viz.:— (a) When taxable goods for use as materials in the manufacture of goods are supplied by a 4 retailer to a manufacturer (whose premises are registered as a factory under the Factories Act, 1921-22); and (b) Such taxable goods remain the proper.ty o£ the retailer; and (c) Taxable goods are manufactured from such materials and delivered to the retailer—the manufacturer will be regarded as a wholesaler selling such manufactured goods to the retailer, and will be required to be licensed and make returns and pay sales tax accordingly. The sale value of the taxable goods so manufactured will be the price charged to the retailer by the wholesaler for manufacturing the goods (exclusive of the value of. the taxable goods supplied by the retailer and used-by the'wholesaler as materials in ■ manufacturing the . taxable goods). VALUE OF GOODS. The equivalent in New. Zealand currency of the value of "goods for Customs duty, until further notice, be determined by adding 23 per centum to such value for Customs duty in respect o£ importations from all countries other than Australia. The value for Customs duty of goods imported from Australia will be deemed to be in New Zealand currency. When goods are sold by exporters abroad to retailers in New Zealand at a price delivered to the purchaser (including freight, insurance, exchange, duty, sales tax, and other charges) and the goods are consigned to an agent in New Zealand of the exporters, the agent paying the duty and .distributing the good's, sales tax will be payable by such agent at the time of the entry of the goods for home consumption. When' such goods have been so sold by exporters abroad to licensed wholesalers in New Zealand sales tax will not be payable until the goods are sold or used by such wholesalers. Where taxable goods are sold by a wholesaler at a net cash price and an increase (known as a plusage,) is added to the price on the understanding that this increase will not be charged if payment for the goods is made on or before a date • fixed in accordance with usual commercial practice, the sale value of such taxable goods will be the sum of such net cash price and the increase (or plusage). Where taxable goods are sold by a wholesaler at a net cash price and such goods are not of' a class or kind usually sold in New Zealand at net cash prices, the sale value of such goods will be the price at which the goods would have been sold if they had been sold on credit on usual trade terms. Where joinery (such as doors, window sashes, staircases, and similar goods) is manufactured by a builder for use by him in the construction1 of buildings he will be regarded as a manufacturing retailer manufacturing such joinery for use by him, and will be required to be licensed and make returns and pay sales tax accordingly.