MISUNDERSTANDING

Auckland Star, Volume LXXIII, Issue 233, 2 October 1942, Page 4

MISUNDERSTANDING

TAX ON DONATIONS COMMISSIONER EXPLAINS (P.A.) WELLINGTON, this day. It has been brought to the notice of the Commissioner of Taxes, Mr. J. M. Park, that there is a certain amount of misunderstanding in connection with the taxation of donations or gifts made by persons to patriotic, charitable or war funds. The commissioner stated to-day that a donation made out of income could not be allowed as a deduction from assessable income for income tax or fof social security charges. It did not matter whether it was made to the patriotic funds or War Expenses Account, and all the claims made under the heading of donations would be disallowed in a taxpayer's assessment. The commissioner added that taxpayers who held Government securities or deposits in the Post Office Savings Banks might donate to the Government interest to arise from their security or deposit by written authority. Individual applications should be made to the Treasury, or, in the case of Post Office deposits, to Post Office officials for the necessary authority. In such cases donors would have to give up or assign their right to receive interest with the result that the interest was not assessable as income.