RETURNS OF INCOME

Rotorua Morning Post, Volume 2, Issue 224, 16 May 1932, Page 7

RETURNS OF INCOME

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, interest, rent annuity or other annual payment, where such income in conjunction with income from fee-of-tax Government securities, company debentures issued free of tax, and from dividends or other profits from shares in companies trading in New Zealand exceed £200 per annum. Returns are required annually from such persons notwithstanding that by reason of the speeial exemptions allowable by law they may not be liable for tax. Form No. 3, wjxich is now obtainable at all post-offices, is the form to be utilized by all individual taxpayers, patnerships, estates and commereial, industrial, or investment companies. The return should be completed and forwarded to the Commissioner of Taxes, Wellington, on or before June 1. 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 j date subsequent to the March 31, ' they should be furnished within two months of that date. Any person required by law to , fxirnish a return and neglecting to do so is liable on conviction to a penalty not exceedins: £100. Neelect 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 absense of a return the ; Department has power to make an J assessment of an amount on which i , it is considered tax ought to he lev- . ied. The acceptance of the estixnated ' assessment does not, however, ahsolve i j the taxpayer from the duty of furnishing a return.