UNEMPLOYMENT TAX

Hokitika Guardian, 3 November 1931, Page 6

UNEMPLOYMENT TAX

STATEMENT BY HON. J. G. •’COATES. (By Telegraph — Per. Press Association) WELLINGTON, November 2. To clear up some doubts and mis-, understandings as. to the liability for;, the payment of the unemployment re-' ifef tax, the following//s tatement was made to-day by the Rt, Hon,. . J. G. Coates in charge of Unemployment!!:-—-, “I he payments are now due way of unemployment 'relief ■ tax., they can be shortly described under three heads: (1) The quarterly instalment of ss, payable by men only-;, (2) the charge on inegme* other than wages or salary received by men (irrespective of their total income) during the year ending 31« t March, 1931 ; :(3) the charge on income; other than wages or salary received -by women, who had a total income' exceeding £250 during the year./ ended 31s.t | March, 1931. / ..' • i(l) Men’s levy;' A quarterly instalment of the/levy, amounting to 5s now payable by all men over the age of 20 years. The only exhaptions are : (1) Totally disabled war /pensioners; (2) old age pensioners and. -other persons in receipt of pensions /.under the Pensions Act, 1926; (3) Yjapris (who,’, however, must pay if they, have elected, in writing, to become:’.(iable and have been approved by ■//the. Unemployment Board ; (4) men v who, for the whole month of Novefnber, ■■ are, inmates of- a public hospij;a|7‘Oii unqtifel/ hospital, old persons’: 'insltitptiohs, or other such charitable institution ; (5) Students at college or', schools, ;\vtio are not receiving salary, .'wages or allowances ; (6) men over 65 years of age, whose total income for the past three months has not averaged more than £2 weekly, provided that they have not obtained the Unemployment Board’s approval of their becoming contributors to the Unemployment Fund ; 1(7) men who, during the whole of November, are, through mental or physical disability, unable regularly to follow any occupation for a livelihood and whose income for the past three months has not exceeded £2 per week; (8) men who, for the-whole of the previous month , (October) have befen registered as unemployed and have not received any income (ah who have been relief workers at any time in October must pay the ss; (9) men who, on proof of hardsh'p, have been exempted by the Unemployment Board. ADJUSTMENT’ IN LEVY, . The levy was reduced on. Ist August, 1931, from 30s to £1 a year. Men who paid the whole 30s levy due in December, 1930, are required to pay only 2s 6d during the present month. In any doubtful case, the contributor should take his coupon book to a postal money order office for adjustment. ....... - . •..

Tax on .1930-31 AIL hum who are not wholly exempt from the Unemployment Levy must now. make a return of their (income, other than wa£es or salary, received during the year from Ist April 1930 to 31st March, 1931. The sources of their income must be shown, including net profits from any profession or business (including farming), interest (including savings bank interest and credit to one's account, and including interest on tax-free war loans); and div:derds, all hough these are exempt from ordinary income tax; rents; royalties; pensions; annuities; superannuation; and, generally, all income with the exception of wages and salary. It dpes not include war pensions or compensation received under the Workers’ 'Compensation Act. Every man, who is liable, must now make a declaration on Form UB i 55, which is to be obtained at any . Postai Money Order Office. He must either give full particulars of his income (other, than wages or salary), or declare that for the . purpose of the Unemployment Tax he has sent a full declaration on; Form UB 55A, to the GammiiSsioner of Taxes covering his 1930-31 income,.. This form must be specially furnished and is additional to the ordinary return lor income tax purposes. , . , *' Tax payable :—The unemployment charge is levied on two thirds ol the incorpe for Ast year (other than i wages or salary) ; and amounts to 3d ill the £, 01-. more precisely, Id for each 6s 8d or part of 6s Bd. One | half of the charge is due to-day. The ' other half is due on Ist February, 1932; but the whole amount may be paid now

Exemptions :—lt must be specially noted that temporary ' exemptions from payment of the Hat rate levy of £1 per year does not affect a man’s liability to pay the tax on last year’s income. The only persons exempt are •totally disabled war pensioners, old age and other pensioners, and Maoris who have been specially admitted to the UneiSlployment Fund. All other men are liable to the tax on their income other than salary and wages for last year.

Farmers :—The farm income on which tax is payable is the net income for last year, after deducting such items as interest, wages paid, farm labour, payments for fertilisers, and foodstuffs, •etc. No deduction is to be made for household expenses nor for paymnts for the farmer’s own services. To assist farmers in stating their income, a special form (UB 58), has been printed, and 'this is obtainable at any Postal Money order Office. It should be specially noted that this form does not take the place of the declaration which must be made. (on Form LB 55, or Form UB 55A) ; an every case, j

' Women :—Returns must now be made on Form UR 55 by women, whose income from all sources for the year ended 31st March, 1931, was £250 or more. No return is required from women whose income was less than £250. The return either may show that a declaration has been sent to the Commissioner of Tnxe s or may set out the details of . .the income received. Tax at the "rate.of Id for each 6s 8d is payable on two thirds of the Income other than pr wages, a s >in tluLcase of nun. Women? may either pay one half of the tax now, and one half in February, or may now pay in full, 1 Tax on this year’s income,: —In ■>th,is sumhihry, I have made no reference to.the charge of 3d in the £, which at the present time is being imposed on all receipts by way of salary or wages. This was levied as from Ist August, 1931, and, in accordance with the law, must be deduct* d by alii . employers. My statement refers to> the general levy, and to the tax on income other than wages or salary. A word should be added to explain why .Parliament was obliged to impose tax’equitable on all income, but it could not be at once imposed on our rent income, except where this takes the form of wages or salary. The value of other income cannot be ascertain d .ptitll the end of the . yqar, when receipts and expenditure can be totalled. was,-.therefore, decided to l ‘vy tHeytax on two thirds of last year’s income front Sources other than wages andyc/sa-ary, .and one third; of, this year’s "income other than wages* and salary'.ln the result it may be ithe effect is substantially as if the tax had been l ievl"cl"' on onc year’s income, but the ’•payment il spread over two or three instalments,, and—what is a matter of no small Vemprirtanee —the Unemployment Board is able to receive at once a part of the moneys which it urgently requires. 1 have had occasion previously to mention the possibility that the unemployment relief tax might be increased from 3d to 5d in the £l.

1 am now pleased to he able to announce that, so far as this Parliament is concerned, it will not lm necessary to nropos'e any increase. I trust that this statement will make clear some points in a subject is somewhat obscure, but to assist, stilll further, array cements will lie niade during this week for the Commissioner of Unemployment (Mr Malcolm Fraser),, to speak briefly over the wifeless, and lie. will deal with some typical queries. .' v ;