RETURNS OF INCOME DUE 1st JUNE.

Manawatu Herald, Volume L, Issue 3945, 21 May 1929, Page 3

RETURNS OF INCOME DUE Ist JUNE.

PENALTY FOR NEGLECT. Fulrnishing a return of income is an annual duty imposed by law on all companies and persons in business, whether for the whole or part of the income year and irrespective of Avhether a profit or a loss was made; also by all persons in receipt of ineolme from salary, Avages, interest, rent, annuity or other annual payment, where such income exceeds £250 per annum. 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. Form No. 3, which is now obtainable at all post-offices, is the form to he utilized by all individual taxpayers, partnerships, estates, and commercial industrial, or investment companies. The return should he completed and forwarded to the /Commissioner of Taxes, Wellington, on or before the Ist June. If Ifor any reason the return cannot be furnished by the prescribed date application should he made for an extension of time. Where returns are accepted compiled to a date subsequent to the 31st March they should be furnished Avithin two months of that date.

Any person required by law to furnish a return and neglecting to do so is liable on conviction to a penalty not exceeding £IOO. Neglect to furnish returns at the prescribed time not only renders taxpayers liable to prosecution, but also results in many cases in an assessment of considerably more tax than would otherwise be payable. 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, howevelr, absolve the taxpayer from the duty of furnishing a return. If the tax payable under the estimated assessment is more than the amount payable on the taxpayer’s actual assessable income, the taxpayer may render himself liable for the higher amount in addition to prosecution for failure to furnish the return at the prescribed time. If the tax payable under the estimated assessment is less than the amount of tax payable on the taxpayer’s assessable income, the taxpayer may render himself liable to a penalty of treble the amount of such deficient fax in addition to prosecution for failure to furnish the return at the prescribed time. Reports of prosecutions for failure to make returns in the past should be taken as a. warning, and all persons liable to furnish returns are therefore advised in their own interests to forward such returns on or before the Ist June.