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, 1941.

Appendix to the Journals of the House of Representatives, 1941 Session I, H-09a

H.—9a.

1941. NE YV ZEA L A N J).

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, 1941.

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

REPORT.

I have the honour to present herewith a report upon operations carried out by the Land and Income Tax Department during the financial year ended the 31st March, 1941, in the administration of the provisions of Part IV of the Social Security Act, .1938, relating to the assessment, collection, and recovery of the social security contribution, consisting of — (a) A registration fee ; and (b) A charge of Is. in the pound on salaries and wages, and also on other income. All income is subject to a further charge of Is. in the pound for national security tax, imposed by Part-II of the Finance Act, 1940, but figures relating to collections under that Act are not included in this report. The Department's activities throughout the year have been carried out under difficult conditions arising through increased work and the release of a considerable number of experienced members of the staff for service with the armed forces. The Post and Telegraph Department continued its valuable assistance as agent in the collection of the registration fee and of the social security charge, and in dealing with various other requirements incidental thereto. The result of the Department's operations during the year is shown by statements (a), (b), and (c) hereunder. (a) Statement showing Number of Persons registered under the Social Security Act, 1938, and Exemptions from Payment of the Registration Fee. (i) Registrations. Males (twenty years of age and over) .. .. .. 531,824 Youths (males sixteen to twenty years of age) .. .. 66,140 597,964Females .. .. .. .. .. .. 592,503 Total number of live registrations as at 31st March, 1941 .., 1,190,467

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(ii) Exemptions from Payment of the Registration Fee granted during the Year ended 31st March, 1941, in respect of Instalments due for that Year.

(iii) Exemptions from Payment of the Registration Fee granted during the Year ended 31st March, 1941, in respect of Instalments due for Year ended 31st March, 1940.

Summary : Total number of instalments exempted under (ii) and (iii) above, 356,447 at ss. each, amount involved, £89,111 15s. (b) Statement of Receipts for the Year ended 31st March, 1941. £ s. d. £ s. d. Registration fee .. .. .. .. 604,179 3 5 Registration fee penalties .. .. .. .. 27,698 8 6 —_ 631,877 II 11 Social security charge on income (Js. in the pound)- - Charge on salaries and wages paid by cash .. 3,947, 220 11 8 Charge on salaries and wages paid by stamps .. 2,272,333 18 11 6,219,554 10 7 Charge on income other than salary or wages .. 3,890,022 9 6 — 10,109,577 0 1 Total .. .. .. .. .. .. £10,741,454 12 0

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

J. M. Pakk, Commissioner of Taxes.

Approximate Cost of Paper.—Preparation, not given ; printing (467 copies), £3 ss.

By Authority: E. V. Paul, Government Printer, Wellington. —1941.

Price 3d. ]

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Number of Persons granted Exemption. May, 1940, Instalment:.Males, Females, Males Twenty YmK and oyer of On account of ' InstalMalea ments iZ;2' m n( ,i August, November, February, exempted. yS and Youths.t M ''t 1940, In- 1940, In- 1941,. Inover* stalment. stalmont. stalrnent. (а) War pensioners (1 9 14 -1 9 1,957 3 .. 1,960 1,735 1,528 1,223 6,446 war) : Total disablement (б) Beneficiaries (monetary bene- 25,353 31,210 269 56,832 22,504 19,839 15,626 114,801 fits), Social Security Fund (c) Unemployed, i n m a t e s of 3,325 1,585 168 5,078 3,179 2,498 1,886 12,641 hospitals, prisons, &c. (d) Students and members of 1,123 6,144 4,243 11,510 1,116 802 403 13,831 religious bodies (e) Members of His Majesty's 15,514 68 1,735 17,317 28,531 47,355 63,393 156,596 forces (/) Hardship .. .. 1,269 1,425 26 2,720 787 279 665 4,451 Totals .. .. 48,541 40,435 6,441 95,41.7 57,852 72,301 83,196 308,766

Number of Persons granted Exemption. May, 1939, lastalment: Males, Females, Males Twenty Y(3ars and Qmt Nu^r ' of On account of and Youths. Iwt&lMales monfcs Twnntv Tot.nl August, November, February, exempted. Yeajs and Youths, t M ay 1939. «*9, *n- *}- In ; over * J ' stalment. stalment. stalment. (a) War pensioners (1 9 1 4- 1 9 249 3 .. 252 524 628 853 2,257 war) : Total disablement (b) Beneficiaries (monetary bene- 4,222 2,112 20 6,354 8,969 10,690 13,433 39,446 fits), Social Security Fund (c) Unemployed, inmates of 275 232 .. 507 403 573 767 2,250 hospitals, prisons, &c. (d) Students and members of 40 438 70 548 96 157 244 1,045 religious bodies (e) Members of His Majesty's forces (/) Hardship.. .. .. 439 229 9 677 604 668 734 2,683 Totals .. .. 5,225 3,014 99 8,338 10,596 12,716 16,031 47,681 * 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 Exemptions Amount of Charge granted (in whole remitted, or in part). 1 | £ s. d. Social security charge .. .. 2,061 | 7,182 14 7 Arrears of employment charge . . 71 815 15 1 Totals .. .. 2,132 J 7,998 9 8