PAYING THE TAX

Waikato Times, Volume 124, Issue 20739, 24 February 1939, Page 8

PAYING THE TAX

SOCIAL SECURITY ACT REGISTRATION AND COUPONS REGULATIONS DESCRIBED (By Telegraph.—Press Association) WELLINGTON, Thursdav The long-awaited “Social Security Contribution Regulations. 1939.'' dealing with registration, the issue of coupon books, exemptions charges on wages and salaries, etc., in other words what individuals’ commitments are to the Government under the Art. are issued under separate cover with to-night's Gazette.

After the preamble the first portion of the regulations deals with the question of the registration fee and coupon books. Tlie procedure with regard to these is in the main the same as that under the Employment Act, with the exception that women and all persons over 16 are liable. Persons w’ho are required to register and fail to do so before the last day of the first instalment of the registration fee commit an offence against the regulations. If coupon books are lost or destroyed new ones can be obtained on payment of Is fee.

Exemptions from -the registration fee have already been outlined. They include persons resident in New Zealand acting as consuls, vice-consuls or official representatives of Governments of other countries who devote their w'hole time to such duties, and those suffering from total disablement as a result of service during the Great XX'ar.

Question of Exemptions

Another interesting clause exempts any person who. on the date of any instalment and for at least the whole of the month commencing on such date, is in receipt of a monetary benefit payable to him on his own behalf from the Social Security Fund (not. being a superannuation benefit or a family benefit), and who is not In receipt of any salary or wages or other income.

Others exempt from the registration fee include inmates of mental hospitals, inmates of public and private institutions for the relief of the aged, needy or infirm persons, or for ar.v publio hospital established under the Hospitals and Charitable Institution Act, as well as inmates of prisons, reformatories or borstal institutions. Those enrolled as students of educational institutions are also exempt, as are members of religious bodies whose rules forbid the possession of property, and registered unemployed. With regard tc those who are absent from the Dominion, the exemptUn regulations state: “Any person who is liable for the registration f.> e and who ceases to be ordinarily resident in ?> .w Zealand shall not be liable for any instalment of registration fee that, becomes due after the dale of his ceasing to be so ordinarily resident.” Personal representatives of deceased persons ore al?' not liable for instalments of registration fees llvit would have been payablo by decease ! persons had they not died. Employees’ Contr'butle ns Maintenance of allowances provided for those attending educnMonnl institutions in terms of scholarshipor bursaries will not be deemed to be salaries or wages or other income The regulations make provision that should questions arise regarding pa: - ments under scholarships or bursaries such questions shall be determined by the Minister of Finaucvq, whose decls • icn will be final. After outlining the procedure to be observed where exemptions are claimed, the regulations go on to deal with the duties of employers m connection with an employee’s registration fee. They state that every employer, upon the commencement of employment of a person and thereafter during employment,, shall upon the first working day in each of the months of March. June, September and December, require the employee 1o produce hi? coupon book, showing that the current instalment has been paid. If such amounts are not paid, unless exemption is granted, the employer is empowered to deduct the instalment due from the employee’s wages and pay H to the authorities by the purchase of social security stamps. Employers failing to do so commit an offence on each day during which the employment of the erring employee continues. Provision is also made for employers to collect registration fees from employees and pay them to the authorities. Superannuation Funds The next portion of the regulation sl deals with exemptions from the social security charge. These in .the main, are the same as exemntions from payment of the registration fee, but in this case persons in receipt of sick pay from friendly societies and those in receipt of pensions or other benefits under the Act or Acts repealed by the Social Security Act are exempt as wril. Under this section every person, including companies, shall in respect of each year he exempt from liability to pay the social security charge upon such portion of income as has been paid during the year by way of contribution to a fund established for the benefit of employees, in other words, a superannuation fund. Most of the clauses dealing with charges on salaries and wages, the issue of social security stamps, charges on income other than salary and wages, substituted balance dates and provisional declarations are of a machinery nature and have been covered by various explanations of the Art given by Ministers and other authorities from time to time. Company Payments Clause 17 in the regulations dealing with companies is new. Tt. states: “The charge payable by every company on its chargeable income for any year shall be due and payable in the same manner and on the same dates as is the charge payable by persons other than companies the first such payment being the quarterly instalment due and payable on May j. 1939, and being in respect of income derived or by force of the Act or of regulations deemed to have be°n derived for the financial year ended March 31 immediately preceding Charges payable by companies in liquidation are also provided for.

One of the last clauses is that affecting persons leaving New Zealand. This states that the Commissioner of

Taxes may issue a certificate to a person about to leave the Dominion that such person is not liable to pay the social security contribution, that such contribution has been paid, or that arrangements nave been made for payment of the contribution that, may be Unless such certificate has been issued authorities for travel will not he issued. Any person contravening this regulation and issuing an unauthorised travel permit shall be personally liable for payment of the social security contribution due by the traveller.