Family Balance Sheet

Sun (Auckland), Volume III, Issue 679, 3 June 1929, Page 8

Family Balance Sheet

DUTIES OF INCOME TAXPAYER ALL obedient taxpayers' have sent returns of tlieir income to the Commissioner of Taxes, Wellington. The day of reckoning, the day upon which the demand has to be met, is yet to come. Before that time, however, the income taxation schedule might undergo the scrutiny of the Legislature and upset the calculations of those who pay.

op HE week-end was spent by many Aucklanders in resting from the brain-fag incurred through filling in their income tax return last week. This massive sheet of paper, with its multiplicity of classes and instructions, occupied time and thought; the exemptions sections were given special attention; and the instructions, embracing every letter of the alphabet down to “t” (with its 21 subclauses), were scanned care.fully for legal loopholes. Then some found that they had omitted to mention the interest they had received from the Post Office Savings Bank; others overlooked the return they had derived from rents and various small investments, which probably would never be noticed, but which yet may not escape the tax department’s many eyes. To those w-ho have survived the ordeal, then, the week-end was a period of brain rest, offset only by the anticipation of the demand for tax which probably will turn up later in the year, but which, it is suggested, might be altered from present calculations by a capricious Legislature sitting in session from June 27. TAXATION REVIEW There is no actual indication that the income tax schedule "is to be revised. The Prime Minister, Sir Joseph Ward, has said on the one hand that he would reduce taxation, and on the other hand (on a more recent date) that he must derive more revenue from certain sources, and also adjust the taxation of the country to meet the half-million deficit in the country's accounts which last year’s working revealed. Sir Joseph foreshadowed a complete review of taxation, so that the distribution of the burden would be equitable and fair. Just how this is to be brought about is still in tlip Prime Minister’s mind, but it is anticipated that some pronouncement about the projected work of the session will be given by the Prime Minister when he is in Auckland this week. It seems only the other day that the last income tax demand was met. It always does appear like that in meeting any recurring accounts. But

it is to be remembered that the previous payments, including the period of grace, were not due to the State until February 28 —three months ago—and another nine months will elapse before the next payment is demanded. For last year the income tax was expected to reach something like £3,500,000 from the 52.000 persons who were eligible and obliged to pay tax on their incomes. Over half of these taxpayers are in receipt of incomes of under £SOO, and the remainder ascend on a rapidly diminishing scale to the £IOO,OOO recorded in the official record of statistics. As a proportionate contributing factor toward the funds of the State, income tax is steadily declining, although the actual receipts hover round about the same figures year by year. At the beginning of 1920, incomes provided 45 per cent, of the State taxation of the Dominion, and Customs duties produced only 30 per cent. The aggregate collections of taxation have increased by less than £1,000,000, but the Customs duties have been made to bear 52 per cent, of the £18,000,000 yielded and income tax takes just under 20 per cent. PENALTIES AND EXEMPTIONS To some taxpayers the exemptions are the means of reducing their income return to a non-taxable degree. For example, there is an allowance of £SO for each child. Incidentally the Government printer has placed eight lines for the names of the taxpayer's children, and added discreetly as a footnote: “If space hereunder is insufficient, a separate sheet may be used.” The use of a separate sheet, moreover, will afford certain satisfaction to some taxpayers, for, while each little name means added responsibility on the family purse, it means also a reduction of £SO in the taxable income. Some returns have not yet been furnished. Heavy penalties hang over the head of the defaulter who is detected after the period of grace has expired. A substantial fine and triple tax combine to keep the defaulter reminded of his responsibilities. But, as Mr. William Woofit said when reminded that he had overstepped the time: “There is yet time; it is a long time before they come to the W’s!”