TAX ARRANGEMENTS

Wairarapa Times-Age, 29 December 1939, Page 2

TAX ARRANGEMENTS

POSITION OF N.Z. SOLDIERS MINISTER DENIES REPORTS. CIVIL OBLIGATIONS OUTLINED. (Bj’ Telegraph—Press Association.) WELLINGTON. This Day. There was no foundation in the statement that soldiers would not be allowed to proceed abroad till their tax obligations had been met. said the Minister of Finance, Mr Nash, in announcing yesterday that income tax demands relating to income received during the last financial year and due on February 12 were being issued to members of the First Echelon of the Second New Zealand Expeditionary Force. “My attention has been drawn to a statement appearing in the daily Press in relation to this matter," said Mr Nash. ’While this statement has some foundation in fact, it is misleading without further amplification. "In the first place any suggestion that sodliers will not be allowed to proceed abroad unless and till their tax obligations have been completely fulfilled is entirely without foundation. Soldiers are citizens and as such are expected to fulfil their ordinary obligations and to pay debts owing by them. But their movements either in New Zealand or to countries overseas are matters of military duty, and are not affected by civil obligations. It is not necessary that they should obtain a clearance certificate in order to leave New Zealand. The necessity for obtaining such a clearance applies to civilians only: these are not permitted to proceed overseas till they have, made provision for the payment of tax owing by them.

'The action now being taken is with a view to assisting members of the forces to ascertain their liabilities and to make provision for them. Thus demands for tax payable in February next are being issued to members of the first echelon: these are demands showing the due date of the tax as February 12 next—the date upon which is payable all income tax upon income derived during the year ended March 31, 1939.

“The tax payable upon income derived during the current year ending on Mhrch 31 next; (other than military pay which is exempt from income tax) will be assessed in the ordinary course in August or September next and will be payable in February, 1941. Those soldiers who desire to do so may, by arrangement with the military authorities, provide that tax payable by them in the future be met by monthly or other deductions from their pay. Whether or not they make an allotment of this nature is a matter for decision by the individual members themselves.

“The position, therefore, is simply this: the military pay and allowances of soldiers are exempt from social security charge and income tax. So far as income not exempt from taxation is concerned, assessments and demands for tax are being made to soldiers in the normal course of the Income Tax Departments administration. Those who are able to pay the tax on due date are expected to do so —indeed this is their duty as ordinary citizens.’’