Public Tax Bulletin To Be Distributed

Taupo Times, Volume XIV, Issue 38, 18 May 1965, Page 8

Public Tax Bulletin To Be Distributed

A public information j bulletin ou the taxation problems i,s novv being j distributed to give an ; overall explanation of the taxation system in New i Zealand. Speaking to Taupo Chamber of Commerce on Wednesday, a taxation research officer with the Associated Chambers of Commerce. Mr K. W. Bauckham, said the bulletin would give the taxpaver the chance to know where he stood in taxation matters without having to wait for the Commissioner to make a decision. Mr Bauckham told the

meeting that efforts were always being made to simplify the taxation act. To ex- ! plain the need for this, he ! read a section from the act j of which he said: "I defy anyone to understand." He spoke of the section of the act which had given more trouble to businessmen j than any other part. This ! was instigated in 1939 to ! prevent heads of businesses from paying unreasonable salaries to family employees. He said it had been the practice to keep money within the firm by paying a member of the family, wife or child, a large salary

! for little service to the I business. "The Board of Revenue was set up to have the act amended, but it took a long time before any progress wras made," he said. "Finally amendment was made and under the new' wording, the owner of a| business can take out almost | an unlimited amount in I salary for himself. For | family employees the sum i must be reasonable," he | concluded. \ . ■