RETURNS OF INCOME DUE Ist. JUNE

Opotiki News, Volume I, Issue 35, 16 May 1938, Page 2

RETURNS OF INCOME DUE Ist. JUNE

PENALTY FOR NEGLECT Furnishing, 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 whether a profit or a loss was made; also by all persons in receipt of income from salary, wages, bonus, allowances, interest, rent, annuity or other annual payment, where such income in conjunction with income from free-of-tax' Government securities, company debentures issued free of tax, and from dividends cr other profits from shares in comapiiies trading in New Zealand exceeds £2OO 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 be utilised by all individual taxpayers, partnerships, estates, and commercial, industrial, or investment companies. The return should he completed and forwarded to the Commissioner cf Taxes, Wellington. C'.l. on or before the Ist. June. 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 the 31st March, they should be furnished within two months cif 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 ip 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.

Theacceptance of the estimated assessment does not, however, 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 income, the taxpayer may render himself liable fer the higher aniount. 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 oil theAfixpa*cr’s income, the taxpayer lhvf/fender himself liable to a penalty of treble the amount of such deficient tax 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 he taken as a warning, nnd all per-, sens liable to furnish returns are therefore advised in. their own interests to forward such returns" on before the Ist. June.