RETURNS OF INCOME DUE Ist JUNE

Hokitika Guardian, 16 May 1931, Page 3

RETURNS OF INCOME DUE Ist JUNE

PENALTY FOR NEGLECT. ' Funlishing a return of income is an annual duty imposed by law on all companies and , person,, in business, whether for the whole or part oT the income year and irrespective , oi whether a profit or a loss was made; also by all persons in receipt of income from salary, wages, interest, reni, annuity or other annual payment, where such income exceeds £250 pej annum.

Returns are required annually from such persons notwithstanding that by reason of the special exemptions "by law they may not be liable for tax. Form No. 3, which is now obtainable at all post-offices, is the form to bo utilised by all individual taxpayers, partnership, estates, and commercial, industrial, or investment companies. The 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- be furnished by the prescribed date application should be made for an extension of time. Where returns are accepted compiled to a date subsequent of the 31st. March, they should lw furnished within two "months cf that date.

Any person required by law 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 prescribed time not only renders taxpayer;. liable to prosecution, but also results in many cases in an assessment of considerably more tax than- would otherwise he payable. In the absence of a return the Department hap power to make an assessment of an amount on which it is considered tax ought to be levied. The acceptance of tho estimatec. assessment does not, however, absolve the taxpayer from the duty of furnishing a return.

• If the tax payable under the estimated assessment is more than the amount payable on the taxpayer’s actual assessable income, the taxpayer may render himself liable for the higher amount in addition to prosecution

for failure to furnish the return at the prescribed time. :-p If the tn-x, -payahle 'under the estimated assessment is less than the amount/ of tax payable on the taxpayer’s assessable income, the taxpayer mav render himself liable to a penalty of treble the amount of such deficient tax in addition to pVd-seeution fori failure to furnish the return at the prescribed time.

''Reports of prosecutions for failure to thake returns in the n-st should be taken as a warning,' an.-d all persons liable to furnish returns are therefore advised in their own interests to' forward suc-h returns on or before the Ist. June.