THE INCOME TAX.

Waikato Times, Volume XXXVIII, Issue 3075, 31 March 1892, Page 2

THE INCOME TAX.

(BY TELEGRAPH. —PIIE<S A^SOCtATtOM). Wkllinqton, Tuesday. The regulations necessary to enable the assessment of income to be made have been gazetted, and forms of the return have been forwarded to the post offices throughout the colony, and will shortly be available for those who require to make returns. This mode of distribution was adopted in South Australia, and found to bo generally convenient. Advertisements will be published shortly calling upon peoplo to Bend in a statement of income, and the last day named for forwarding them will be the 18th of April. It had been intended to fix the 14th as the latest day, but the Easter holidays following immediately after that has enabled the time to be extended to the 18th. It has been endeavoured to make the form as simple and as easily understood as possible,and with it are published schedules D, E, and F, which bear particularly on the assessment of persons and firms. Formsfor companies generally will be distributed immediately, but those for shipping companies and insuranco companies which require to be specially dealt with, have not yet been prepared. Income derived and received in the colony, although not derived from a source within the colony, j are both taxable. Thus, a resident in New Zealand living on an income derived from any place beyond it, will return such income. The first division of the form provides for income from business, and is classified in tho Gazette published last night. It should be remembered that as companies in the colony are subject to income tsx, recipients of dividends from such companies need not include them in their income. The first seven headings comprise most sources ot income, and under the eighth will be entered any not included in tho seven. As pastoral lands of thn Crown are exempt from land tax the incomes of pastoral tenants are made subject to taxation. Profits from gold and other mining, except coal, are liable to income tax. As provided by paragraph six schedule A, from the gross income will be deducted losses, outgoing, and expenses actually incurred in its production. Paragraph two of schedule F states several deductions that cannot be allowed, and this portion of the schedule will require careful attention in the compilation of the return. Paragraph six of schedule F provides for the deduction of a mm equal to five per cent, on the amount on which the occupier of business premises

is liable for land tax in respect of them. Further deduction up to £50 a year is authorised in respect of premiums paid for the insurance of the life of the person makthe return. The second division of the return deals with income from employment or emolument, and it is also set out in the Gazette. After the not income has been arrived at there will be a deductiou of exemption of £300 allowed under schedules D and E, but no person or firm will be allowed more than one exemption either in respect of business employment or emolument. Those whose net incomes do not reach £300 a year will bs exempt from the tax. In order to afford a cheek in allowing exemptions, provision is made in the return for stating the names of partners in firms, no persons being entitled to a deduction of more than £300 in respect of any interest in a firm, and any income derived by himself alone. To assist in collecting the tax from those in the employ of companies, firms, and persons, a list of employees receiving mora than £160 will bo given with each return, and in cases of Government departments and local bodies and others that are not taxpayers, separate lists will be provided, and will be obtainable at the post-nffices. It is not intended that the income tax shall be collected and paid by employers on behalf of employees, but each person in receipt of income will make his own return, and pay the tax in respect of it direct. The returns now called for wiil give the income derived during the year ending 31st March, 1892, and thereafter annual returns will be made of income derived in each year ending 31st March. The general exemption are : (A) General revenues receives by or on behalf of Her Majesty the Queen in New Zealand; (b) by the Governor of the colony so far as respects emolument of his office as Governor ; (0) revenues received by any County Council, Borough Council, Town Board, Road Board, Harbour Board, puplic university or public school, Education Board, school commissioners, licensing committee ; (d) by friendly societies or building societies; (k) by wner or occupier of land in New Zealand or from use or produce of such land derived by such owner or occupier, or from mortgages of such land, except whore otherwise specially provided. The last named is, of course, the most important, as its exempts from payment of income tax rents of land, interest on mortgage, and income derived from use or produce of land by owner or occupier. Income derived from dealing in produce, w'lether live stock, wool, grain, or any kind of produce, is not exempted by this provision.