TAX LIABILITY

Waikato Times, Volume 127, Issue 21177, 29 July 1940, Page 6

TAX LIABILITY

LAST YEAR’S INCOME DOUBLE FOR THREE QUARTERS NATIONAL SECURITY CHARGE National security tax at the rate of Is in the £ is imposed in respect of all income subject to the social security charge of Is in the £, says a statement by the Commissioner of Taxes. It applies to the same persons, trustees and companies as are liable for the latter charge and is payable in the same manner and on the same dates. All the provisions of the Social Security Act, 1938, and the regulations made thereunder, relating to the social security charge, are made applicable to the national security tax. In effect the position is the same as if the social security charge were increased from Id for every Is 8d (Is in the £) to Id for every lOd (2s in the £), and the social security and national security charges are to be collected on this basis accordingly. The increase in the charge, however, is limited, in respect of income other than salary or wages derived during the year ended March 31, 1940, to the August, 1940, instalment, and subsequent quarterly instalments of the charge thereon. In respect of salaries and wages, the increase in the charge is limited to amounts derived in respect of any period after July 21, 1940. The three quarterly instalments of the current year’s social security charge, on income other than salary or wages, due on August 1 and November 1, 1940, and February 1, 1941 (computed on the basis of the old rate of Is in the £ on income derived during the year ended March 31, 1940) will be payable at double the amount thereof in each case, and will be subject to a penalty of 10 per cent on any amount not paid within one month of the respective due dates. Payments on this basis will be required in cases where only the May, 1940, instalment of the social security charge has been paid. The immediate liability will be in respect of the instalment due on August 1, 1940, which will be subject to a 10 per cent penalty if not paid within one month of the due date. In cases where the four quarterly instalments of the social security charge have already been paid in full, the total national security tax payable for the current year will be an amount equal to a total of the last three instalments of the social security charge, or three-quarters of the total social security charge already paid in full. A quarterly instalment (ss) of the Social Security Registration Fee payable by male persons twenty years of age or over becomes due on August 1, 1940.