INCOME TAX

Hokitika Guardian, 21 December 1933, Page 2

INCOME TAX

EXEMPTIONS ALLOWED BY LAW.

HARDSHIPS; INSURANCE; SPORTS

(Per Press Association, Copyright),

WELLINGTON, December 20. The, Land and Income Tax Amend-

ment Act of last session granted exemption of £SO for a married man in respect of his wile. Provision is made in a Bill introduced to-day, to grant the'same exemption to a woman who supports her husband., Cases of hardship have arisen where a widower or widow has to pay, a housekeeper to. look after the children, and the same allowance is now proposed; as if the housekeeper were a wife, or in the case of a widow, a husband. Public amateur sports bodies such as the New Zealand Rugby Union, Cricket Council, etc., are granted exemption from the tax on income other than gate receipts. Gate receipts were never assessed, but interest from investments was. Gibe new provision gives total exemption. It is proposed to exclude from the exemption the premiums /paid on a special class /of insurance policies, which .are purely investments, These policies require no doctor’s certificates, and in case of death premiums only are returned. It is held that exemption in such, cases was not contemplated by the original Act, in. which ■the intention was that provision for dependents after death shouldbe encouraged.- :? !,Jj /| I; ; - , , . ft* A special provision is applicable to the assessment of income tax-‘bn t interest, on capital, borrowed out of New Zealand. It states the amount deducted from total income by the borrowing company in respect of interest on such money .shall be separately assessed, and the tax on it shall he charged against the-.lenders of the money.