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Hauraki Plains Gazette, Volume 53, Issue 32425, 1 May 1944, Page 4

Public Notice DEFERRED MAINTENANCE EXPENDITURE The Government has had under consideration for some time past the question of permitting for taxation purposes a deduction in respect of deferred maintenance. As a result of war conditions and the consequent shortage of both labour and materials maintenance which would normally be undertaken, of necessity, has had to be postponed. Maintenance in the case of farmers includes repairs to farm buildings and machinery, repairs to fences, scrub-cutting, drain clearing, renewal of pastures, top dressing and other normal farm maintenance. In the case of other businesses, it includes normal repairs to buildings, plant and machinery, motor vehicles and other business assets. A decision has now been reached whereby such deferred maintenance may be claimed as a deduction for both income tax and social security charge and national security tax purposes. The scheme first operates for the income year ended 31st. March, 1944, and applies to all taxpayers (individuals and companies) in respect of all assets used in production of assessable income. Briefly, the scheme is:— 1. If a taxpayer considers that deferred maintenance in his case would amount to not less than £lOO, he may lodge with the Government, as a noninterest bearing deposit, a sum equivalent to the amount of his estimated deferred maintenance. The Commissioner of Taxes on being satisfied that the amount is reasonable will then allow the deduction for both income tax and social security charge and national security tax purposes. For administrative reasons it has been decided that the allowance will apply only to those cases where the estimated deferred maintenance is not less than £lOO.

2. The Secretary to the Treasury will, on receipt of application from a taxpayer, refund any amount deposited in respect of deferred maintenance, provided that any deposit will not be refunded before the expiry of twelve months from the date such amount was deposited with the Government. Any amount refunded will be assessed to the taxpayer as income of the year in which repayment is made. The question as to the date when final repayment of deposits will be made will be considered by the Government when facilities again become available to overtake the present arrears of maintenance.

As already stated, the scheme applies firstly for the income year ended 31st. March, 1944. The procedure to be followed in respect of claims to be made for that year and for subsequent years may be summarised as follows: — 1. Any amount deposited in respect of estimated deferred maintenance for the income year ended 31st. March, 1944, must be paid not later than the Ist. June, 1944, or if a taxpayer furnishes a return of income for the year ended on a date later than the 31st. March, 1944, then within one month from SUCh later date. Any amounts so deposited in respect of the next income' year must be paid not later than the end of that income year, i.e., 31st. March 1945, or equivalent balance date. Applications in respect of subsequent years will be on a similar basis. 2. The application form to accompany the deposit may be obtained on applying to the Commissioner of Taxes, P.O. Box 1703, Wellington C.l. (it is imperative that the Post Office Box number be included in the address). When applying for the form, a taxpayer must state the amount of deferred maintenance wh ? ch he intends to deposit and to claim as a deduction. An application form and an account for the amount of the deposit will then be forwarded to the taxpayer. On completion of the form it should be presented, together with the account and a cheque for the amount of the deposit, at a money order post office, when the receiving officer will issue a receipt in the usual manner. A space is provided in the application form for details of the deferred maintenance, and if