INCOME TAX.

Auckland Star, Volume LVI, Issue 32, 7 February 1925, Page 7

INCOME TAX.

WHO PAYS THE MOST? ' INTERESTING DISCLOSURES. : I TAXABLE BALANCE TWENTY- j THREE MILLIONS. : Some interesting disclosures regarding! income tax arc made in the annual | review- of Inn (lovprnmcnt Statistician. ; Through the operation of the variou*i exemptions and reduction*, only :Hi.ool j. of the 74.7.")0 makers of vet urns of income ; dealt with by the Commissioner of Taxes' for the ifiVit year were assessed as havinp to pay income tax, the remain-j ins 3fi,60!) being either exempt as having! ii lower income than £:SOO, or havinp j no taxable balance left after tile otlierj deductions were taken into account. j Of the companies covered by thej statistics, (if) escaped taxation through the application of the provision relating to income derived from land, the number of taxpayers in this class being 2111. Tim whole of the 85 non-residont traders and of tlip J7!l agents for dehonlureholders were required to pay income tax nu exemptions being npplieable to tliese classes. I The urasM assessable income returned I was £}|.7:!5.1)1i4. of which £-J4.4'20.K70 ranked as earned income, and as Kiich became entitled to a reduction of 111 per ce7i( in taxation. The taxable balance, after allowing for all cxemp-. tions. was £&'l.olio..'ltf". or 7*l per cent of tlie gross assessable income. The percentage of taxable balance to us. , sessahlc income was: Person*, firms, etc.. :W : companies. !)l : »» f ,n, for debenture-holder.- and non resident traders. 100. Although Hi,, salary and wage-earning ■ las.s is the most important, its total of £1r.,000,000 assessable income shrinks to ii comparatively insignificant taxable balance of £3.022.000, out of a total of over £23,000,000, and yields only j £207.100 of tax. Second place, as regards income and number of taxpayers, is I held by invest ments. of which there I ■ ivere '.HUA taxpayers, returning taxation I :of £310.373. Commerce, trade, or bnsi-j ness was responsible for taxation j revenue of £270.tS.'>:>. and the professions I £114,902. The total income tax received , was £949:223. I There is one class of people that payincome tax in greater proportion than any other, (.if those earning income from industry or manufacture, accordling X" the 'returns furnished to the Tax ( ommisioners. 70 per cent are taxpayers, rompared with 74 per cent among the professions, 4:1 pet- cent in commerce, trade nr business. ,">.") per cent i among investors. .IS per cent in mining, I4S per cent in building and construction, j The lowest percentage is salary or wageI earners, who represent 42 per cent. The following table is interesting, as summarising the returns according: to I the amount of income, together with j the percentage of income on which tux lis payable: - i Asses*- NiiinNum- able b..r tier or Income, of lax- ' Income. returns. £ payers. ■ I'uiier i3l«i 1M,817 ."•.20-_ , .40-j ■ t';too to £:<uu... I'O.-jo.-, i;.!ii;4,io:: 7<i-i.-, , ; t4of> to £4!«1... 10.134 4,44.VXi<> Tlttli I £."i"K) t<. i'.WI... Kf.TtW '.:,(lTti J4-J lU'.lin | tlOOil to tlM'.t.. .".IMS .j.lMo.ir.o :;s4'.i 1 £2000 t.,, £4ilfin.. 1.44U 4. ITS/Jti:! 141s . fsooo to iiionn.. -jei 1.772.317 i'lO.ouO and over Ulo Ulu r The total exemptione allowed during the year IPSi-lM were £21,1J0!3.15f17, and - £1.5,1-2l,ili:}, or more than two-thirds of • the total, was planted in the caw of

incomes under £."illll. I ompanics were i "xempted t>, Uio extent of only £fIOS.BII. | ill rctspoet of the capital value c.xc.nip- | lion. Xlic reinaiaing of <-xemptions applied to the general class of persons, tinns. etc., £1u.52.3.7U0 being allowed under the £300 exemption provision. £1,280,Ti1l in respect of the capital value of land used in the production of income, £2.033.27-"> on account of allowances for children and widowed mothers, and (ilti.KW on account of life insurance premiums, payments to superannuation funds, etc

The average income between £300 and £400 pays only 17/11. or 1/ in the £1 of lotiil assessable income, returned, as compared with £72 i'/ti. or 1/1 in the £1 for incomes between £1000 and £2000. Incomes over £-iu,ooo paid in ]Sl2;i-24 slightly less on the average than tho maximum --5/H) in ilio £I—providedl—provided by the progressive rates in force.