The Guardian And Evening Star, with which is incorporated the West Coast Times WEDNESDAY, OCTOBER 7, 1931. UNEMPLOYMENT TAX.

Hokitika Guardian, 7 October 1931, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times WEDNESDAY, OCTOBER 7, 1931. UNEMPLOYMENT TAX.

In connection with the Unemployment Tax tanners who have made any income during the year ended March 31 last, will be required to contribate at tlieyrate of 3d in the £ on two- | thirds of it within the next few weeks, j Small business men, who get an income, ■ but not sufficient to warrant the preparation of the ordinary income tax return, are also among those concerned in the system of declaration of income to the Post Office in connection with the unemployment emergency tax. These points are being emphasised because there has been an impression that the scheme is somewhat limited, though it is the most comprehensive method of tax-collection, ever tried in New Zealand. Another unusual feature of it is that much is being left to the integrity of the taxpayer. Instead of being required, as in the case of an income tax return, to show a number of details which will assist the Department in checking the accuracy of his figures, the declarations of income required to be made to the Post Office will involve practically no details—the total income has to be declared, without minute details. As the amount of tax payable has to be submitted with the declaration, this is another simplification which will save the State a very large sum. as it is well known that the cost of collection of taxes in small amounts, involving returns, assessments and demands, is out of all proportion to the yield. This explains the reason whv income tax commences in New Zeal'iul at a fairly high point. It may be assumed that when the State trusts to the individual in a method of solf-nsspssment of tax it is leaning rather heavily on its confidence in I,onion nature. However, at leisure, the Unemployment Commissioner will to able to overhaul the returns, and If then o is am- suspicion ot evasuni, • to ailed humifies can he made. I he first- tiling, however, is to got urgentlyneeded revenue for relief work. Then the closest scrutiny can be made of j the bona tides of C' A declarations. ! Tbg terra I ’income'* does not include

compensation received under the Workers’ Compensation Act, or any war pension. Farmers cannot include their expenditure on household purposes as part of their farm expenses, but must show the net income of the farm itself. This system of tax collection will enable a levy to be made on remit-

tances from overseas for services rendered by the New Zealand taxpayer. The taxpayer will find that on the form first handed to him he will get t' roe options. The first is to declare that he lias derived no income other than Salary or wages, in which cave liis taxpaving obligation lias been metthrough wages tax stamps. The second option is to declare that the return, of income other than salary or wages is being disclosed to the Commissioner of Land and Income 'fax. In this case a second declaration form is handed out, on which the taxpayer will make the necessary return, and at Inch the required tax payment, and relidel 1 it to the Laud and Income Tax Department. The thtrd option is to disclose to the Post Office the income other than salary or wages for. the year ended March 31, 1931, and to pay the tax over the counter,