INCOME RETURNS

Hauraki Plains Gazette, Volume 52, Issue 3264, 17 May 1943, Page 6

INCOME RETURNS

PROFITS FROM BUSINESS WAGES AND SALARIES PENALTIES FOR NEGLECT Returns of income are required to be furnished by all companies and persons in business, or in receipt of profits or gains derived from the use or occupation of all lands used for agricultural or pastoral purposes (irrespective of the value of such lands) or in receipt of profits or gains derived from the extraction, removal, or sale of minerals, timber or flax; also by all persons in receipt of income from salary, wages (including bonuses, overtime, allowances, etc.), interest, rent, annuity, or other annual payments, or dividends or other profits from shares in companies where such _ income exceeds £2OO per annum, whether the income from interest, rent, annuity or dividends.is derived from a source within New Zealand or beyond New Zealand.

Returns are required annually from such persons notwithstanding that by reason of the special exemptions allowable by law they may not be liable for tax. The following return forms are available: —Form No. 3— ! Where income derived from salary or wages. Form No. 3A—Where income derived from farming. Form No., 3B —Where income derived from business or profession. Form No. 4 —Where income derived by a company.

In the case of a person who derives income from farming and also from a profession or trading or manufacturing concern it will be necessary to furnish two returns (Forms 3A and 3B). Particular attention is drawn to the fact that all farmers must now make income-tax returns on Form 3A whatever the unimproved value of the land farmed.

The return should be completed and forwarded to the Commissioner of Taxes, Wellington C. 3., on or before June 1. 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 to March 31, they should be furnished, within two months of that date. In the absence! of a return the department has power to make an assessment of an amount on which it is considered tax ought to be levied. The acceptance of the estimated assessment does not, however, absolve the taxpayer from the duty of furnishing a return. Persons required by law to furnish returns of income are cautioned that failure to supply such returns renders them liable to prosecution under the penal clauses of the Land and Income Tax Act, 1923. Present staffing difficulties in the Land and Income Tax Department render imperative the necessity for strict compliance with the law. For this reason taxpayers are warned that it is the intention of the Commissioner of Taxes to apply more rigorously the penal provisions of the Act.