THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE. MONDAY, WEDNESDAY, FRIDAY. “Public Service,” MONDAY, JULY 19, 1943. PAYING INCOME TAX

Hauraki Plains Gazette, Volume 32, Issue 3290, 19 July 1943, Page 4

THE Hauraki Plains Gazette With which is Incorporated THE OHINEMURI GAZETTE. MONDAY, WEDNESDAY, FRIDAY. “Public Service,” MONDAY, JULY 19, 1943. PAYING INCOME TAX

In Great Britain, wage-earn-ers pay income tax by deductions made regularly over a period, but the basis of the assessment is the income for the previous year. Apparently the demand persists that some method should be devised whereby the tax would apply to current earnings and the Chancellor of the Exchequer has stated that he would never oppose such a system if it could be worked. The consensus of opinion that deductions on the .basis of current earnings would be advantageous. The British Trades Union Council and the Employers’ Federation have approved of the principle. The chief problem seems to be that, whereas the present system enables the assessments to be made at the commencement of a financial year, taxation on current earnings would have to be subject to adjustment after the x c]ose of that period. In Canada, where the pay-as-you-go system is now in operation the deductions from salaries and wages would be made at 95 per cent, of the liability at the current annual rate of earnings. The exact amount of income will be determined at the end of 1943 and a return forwarded on or before March 31, 1944, together with a statement showing whatever is required to make up the difference between the deductions and the actual amount due. Should the Canadian experiment prove equitable and practicable, then it may be adopted by the British Minister.