LAND AND INCOME TAX DEPARTMENT. REPORT OF THE COMMISSIONER OF TAXES UPON THE ADMINISTRATION OF PART IV OF THE SOCIAL SECURITY ACT, 1938, FOR THE TWELVE MONTHS ENDED 31st MARCH, 1940.

Appendix to the Journals of the House of Representatives, 1940 Session I, H-09a

H.—9A.

1940. NEW ZEALAND.

LAND AND INCOME TAX DEPARTMENT. REPORT OF THE COMMISSIONER OF TAXES UPON THE ADMINISTRATION OF PART IV OF THE SOCIAL SECURITY ACT, 1938, FOR THE TWELVE MONTHS ENDED 31st MARCH, 1940.

Presented to both Houses of the General Assembly pursuant to the Provisions of the Social Security Act, 1938.

REPORT. T HAvjfi the honour to present herewith a report upon operations carried out by the Land and Income "S X fi » anc f/ ear . elld f the 31st March, 1940, in the administration of the of tlw Social ** 40 the <«»> a » d ADMINISTRATION. The Social Security Contribution, consisting of— (a) A registration fee ; and (b) A charge on salaries and wages, and also on other income ; has been collected in substantially the same manner as employment tax (the registration lew and employment charge) previously payable in terms of the Employment Promotion Act 1936 The work m connectmn with employment tax was performed by a separate divisional stiff of the Department but the transfer of the Department to new premises in December, 1938, enabled an amalgamation and reorganization to be earned out. This has resulted in greater co-ordination of thework 0 f t£ Department m the collection of income-tax and of Social Security Contribution. During the year the Department has had to cope with a considerably increased volume nf m connection with the Social Security Contribution as compared with the m connection with employment tax. The increased volume was accounted for reason of new or additional liabilities imposed by the Social Security Act, under which women and persons sixteen years and under twenty years of age are liable for the registration fee and the charge upon income m addition, companies are now liable for the charge on income, this liability being substituted are P f thus been faced with the necessity for training a large number of officers, the work of the Department has been performed m a very satisfactory manner. Steps now being taken to mechanize the efficiency!" th « *** Wlt >' will "result in increaSd The Post and Telegraph Department continued its valuable assistance as agent in the collection " ,d ° f the So °"' &curi ' y dwec - " d -"' th hereunder" 1 * ° f Department ' s °P during the year is shown by statements (a), (6), and (c)

H.—9A.

(a) Statement showing Number op Persons registered under the Social Security Act, 1938, and Exemptions from Payment of the Registration Fee. Registrations. Males (twenty years of age and over) .. .. .. 530,937 Youths (males sixteen to twenty years of age) .. .. 65,161 596,098 Females .. .. .. .. .. .. 577,864 Total number of live registrations as at 31st March, 1940 .. 1,173,962

(6) Statement op Receipts for the Year ended 31st March, 1940. £ s. d. Registration fee .. . . . . . . .. .. 635,440 8 ] .1 Charge on income— £ s. d. Charge on salaries and wages paid by cash .. 3,096,876 10 6 Charge on salaries and wages paid by stamps .. 2,459,736 15 7 5,556,613 6 1 Charge on income other than salary or wages .. 3,304,306 19 4 8,860,920 5 5 Penalties .. .. .. .. .. .. .. 32,074 18 0 Total .. .. .. .. .. .. £9,528,435 12 4

(c) Statement of Exemptions granted, on the Grounds of Hardship, from Payment of the Charge on Income.

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Number of Persons granted Exemption. Total Exemptions from Payment of the 1939 > Instalment. Number of .Registration Fee on Account of August, November. February, "istaiMales, 1939, In- 1939, In- 1940, InTwenty t Vonthn t Total, stalment. stalment. stalment,. exBm I>wwi. Years and loutns.T May> 1930 , over.* , j . . _ (a) War pensioners (1914-19 1,194 .. .. 1,194 1,194 1,198 1,080 4,600 war) : Total disablement (b) Beneficiaries (monetary bene- 15,328 23,740 189 39,203 15,824 14,389 11,808 81,284 fits), Social Security Fund (c) Unemployed, inmates of 3,208 1,377 135 4,780 3,422 3,381 2,579 14,102 hospitals, prisons, &c. (d) Students and members of 1,123 5,793 4,001 10,977 1,185 804 536 13,502 religious bodies (e) Members of His Majesty's .. .. .. .. .. 8,630 14,749 23,379 Forces (/) Hardship .. .. 926 1,431 14 2,371 975 517 077 4,540 Totals .. .. 21,839 32,347 4,399 58,585 22,000 28,979 31,429 141,593 * Males twenty years of age and over are liable for quarterly instalments of 5s. each, payable in February, May, August, and November each year. t Females and youths are liable for 5s. annually, payable in May.

Number of JSxemption.s Amount of Charge granted (in whole remitted. or in part). £ s. d. Social Security charge .. .. 2,128 6,829 16 3 Arrears of employment charge .. 277 | 1,899 2 6 Totals .. .. .. 2,405 8,728 18 9 I ~ m J. M. Park, Commissioner of Taxes.