RETURNS OF INCOME

Hokitika Guardian, 20 May 1929, Page 2

RETURNS OF INCOME

Dlfijlst. JUNK'.f.II '< PENALTY Foil XLG LILT. Furnishing a return of income is an annual duty imposed by law on all companies and persons in 'business, whether for the whole or pain of the income year and irrespective ol whether a protit or a loss was made; also by all persons in receipt of income from salary, wages, interest, rent, annuity or other annual ment, where such income exceeds £‘2o() per annum. Jteturns are required annually from such persons notwithstanding that by reason of. the special exemptions allowable by law they may not be liable for tax. Form No. 3. which is now obtainable at all post offices, is the form to he utilised by all individual taxpayers. partnerships estates, and commercial, industrial, or investment companies. Tile return should be completed and forwarded to the Commissioner of Taxes, Wellington, on or before the Ist June. If for any reason the return cannot ho furnished by the prescribed date application should he made for an extension of time. Where returns are accepted compiled to a date subsequent to the 31st March they should ho furnished within two months of that date. Any person required by haw to furnish a return and neglecting to do so is liable on conviction to a penalty not exceeding £IOO. Neglect to furnish returns at the proscribed time not only renders taxpayers liable to prosecution, hut al&o results in many cases of ail assessment of considerably more tax than would otherwise bo payable. In the absence of a. return the Department has power to make an assessment of an amount of which it is considered tax ought to ho levied. | Tho acceptance of the estimated j assessment does not, however, absolve Hie taxpayer from the duty of iurliishiiig a return. ! Tf the tax payable under the estimated assessment is more than the amount payable on the taxpayer m actual assessable income, the taxpaver may render himself liable for the higher amount in addition to prose-

cution for failure to furnish the retnm ac the prescribed time. If the tax payable under the estimated assessment is less than the amount of tax payable on the taxpayer’s assessable income, the taxpayer may render himself liable to a penalty of’ treble the amount of such deficient tax in addition to prosecution fur failure to furnish the return at the prescribed time. lteports of prosecutions for failure to make returns in the past should be taken as a warning, and all persons liable to furnish returns are therefore advised in their own interests to forward such returns on or before the Ist June.