SOCIAL SECURITY

Wairarapa Times-Age, 20 December 1938, Page 7

SOCIAL SECURITY

■> CONTRIBUTIONS BY FIRMS TO STAFF FUNDS. EXEMPT FROM SPECIAL TAX. (By Telegraph—Press Association.) WELLINGTON, This Day. An assurance that companies making contributions to staff superannuation schemes approved by the Commissioner of Taxes would be exempt from the payment of the social security tax on such contributions was given by the Minister of Social Security, Mr Nash, in an interview last evening. He said that whatever steps were necessary to secure exemption would be taken at the appropriate time. “It has been brought to my notice that many companies are apprehensive of their position concerning exemption from the social security charge of Is in the £1 on that portion of their income which is contributed to staff superannuation funds,” said Mr Nash. “The position generally is that many companies have established funds to which they have a contractual obligation to contribute irrespective of -'/nether or not a profit or a loss has Leon made; whereas other companies rave established funds, their contrlbiti m to which is solely dependent up-i a profit being made or upon the making o’’ an annual grant by the company. Where the superannuation fu.’.d has been approved by the Comrnis-'m.-.er oi Taxes, the company is entitled to have its taxable income reduced by the amount of the contribution made by it to the fund, whether or not the contribution is made under contract or voluntarily. “I find, however, that in the case of companies making voluntary contributions to such a fund, there is some doubt as to whether the amount of the contribution will be deductible when computing the amount of income liable for social security charge. It is desirable that the same exemption in respect' of these contribn'i'-ns should obtain in respect of the social security charge as in respect of income tax, and I wish to assure -o upanies that, where superannuation funds have been approved by the Commissioner of Taxes, whatever is necessary to secure exemption, whether it be by regulation or by legislation, will be carried out at the appropriate time.”