STAFF PENSIONS.

Auckland Star, Volume LXIX, Issue 300, 20 December 1938, Page 17

STAFF PENSIONS.

COMPANY CONTRIBUTIONS. SECURITY TAX EXEMPTION. (By Telegraph—Press Association.) WELLINGTON, Monday. "It lias been brought to my notice that many companies are apprehensive of their position in regard to exemption from the social security charge of a shilling in the pound on that portion of their income which is contributed to staff superannuation funds," fiaid the Minister of Social Security, the Hon. W. Nash, in an interview to-day. "Many companies have established funds to Avhieh they have a contractual obligation to contribute,, irrespective of whether a profit or loss lias been made, whereas other companies have established funds their contribution to which , is solely dependent Upon a profit being made, or upon the making of an annual grant by the company. j "Where a superannuation fund has been approved by the Commissioner of Taxes, the company is entitled to have its taxable income reduced 'by the amount of the contribution made*by it to the fund, • whether or not the" contribution is made under contract or voluntarily," added the Minister. "I find) 'however, that in the case of com-

panics making voluntary contributions to such .a fund, there is some doubt as to whether the amount of tho contribution' will be deductible when computing the amount of income, liable for the social security charge. "It is desirable that the same exemption in respect of these contributions should obtain in respect of the social security charge as in respect of income tax, and I wish to assure companies that, where superannuation funds have been approved by the Commissioner of Taxes, whatever is necessary to securc exemption, whether it be bv regulation or by legislation, will be carried out at the appropriate time.''