UNEMPLOYMENT TAX

Rotorua Morning Post, Volume 1, Issue 40, 9 October 1931, Page 4

UNEMPLOYMENT TAX

EMERGENCY CHARGE ON INCOMES. The emergency unemployment charge is payable on all income which is assessable for income tax, and also on items which are exempt from income tax, such as dividends from companies, interest on tax-free war loans and debentures, incomes from farming operations and income which is specially exempt under other Acts. Practically the only items of income which are exempt from the emergency charge are war pensions, compensation under the Workers' Compensation Act, 1922 (whether paid. as a lump sum or by weekly payments) and income deriyed from beyond New Zealand on which income tax has been paid in any other British Dominion. Income means net income. Thus, a person deriving income from rents is entitled to deduct from the gross amount received the cost of .earning the rents, such as interest, rates, repairs, etc. All cash recejpts are not subject to the charge. For example gifts legacies, capital receipts, money received from art unions, etc., do not represent! income, but totalisator receipts and racing stakes should be included in the income of the individual recipients. The charge is not payable on any amount from which the wages tax has been deducted or on any class of income which has been declared by the Unemployment Board to be subject to the wages tax. For example, the Board has declared that direetors' f ees- derived before the Au'gust, 1931, are not liable to the charge on income even though no wages tax was deducted at the time of payment.