THE INCOME TAX.

Press, Volume XLIX, Issue 8134, 30 March 1892, Page 6

THE INCOME TAX.

REGULATIONS FOR ASSESSMENT.

Crasss association telegram.] WELLINGTON, March 29.

The regtilationa necessary to enable ] Bseeajmeat of incofiss to be made have been gazetted, and the forms of return have beeu forwarded to the Post Offices throughout the colony, and will shortly be available for those who have to make returns. This mode of distribution was adopted in South AußtraKa and found most generally convenient. An advertisement will be published shortly calling upon people to send in ti&tements of their income, and the last day aamed for forwarding them will be the 18th "of ApriL It had been intended to fix the 14th as the latest day, but Easter holiday following immediately after that has 'enabled the time to be extended to the 18th. It has been endeavoured to make the form *cc simple and as easily understood as possible, and with it are published 'schedules D, E and F, which bear particularly on the assessment of persons firms. ITorms for companies generally ; wrjli be distributed immediately, but those ' for Shipping Companies and Insurance Companies, which require to be specially , dealt with, have not yet been prepared. Incomes derived and received in the colony, end incomes received in the colony although not derived from a source within 1 the colony, are both taxable, thus a resident "in New Zealand living on an income 'derived from any place beyond it will jreturn such income. \ /The first division of the form .provided is 'ifor income from business, and is classified ;'in the " Gazette" published last night. It I Bhouid be remembered that as companies in ,in the colony are subject to income tax, the 'recipients of dividends from such cornfames need not include them in their in'CO2DA. The first seven headings comprise most of the sources of income, and under 'eight will be entered any not included in the seven. Aβ the pastoral lands -of" the Crown are exempt from land tax, the incomes of pastoral tenants are ' made subject to taxation. Profits from 'gold and other mining, except coal, are liable to income tax, as provided by paragraph 6, schedule A. From the gross ( income will be deducted the losses, out- * goings and expenses actually incurred in * its production. Paragraph 2of schedule F * Btatcs several deductions that cannot be *■ allowed, and thia portion of the schedule ' will require careful attention in the compilation of the return. Paragraph 6of 'schedule F provides for the deduction of a 'sum equal to 5 per cent, on the amount of ■which the occupier of business premises is liable for land tax in respect of them. A •farther deduction up to £50 per year is * t *tuthorised in respect of the premium paid for insurance of the life of the person 'taakiag the return. r -Hie second division of the return deals 'With income from employment or emolu*tn£s&, and as also set out in the "Gazette." * After the netfc income has been arrived at r ehere will be a deduction of exemption of ; £300 allowed under, schedules Dand E, but no person or firm will be allowed more than one exemption, either in respect of business, employment or emolument. Those 'Whose net incomes do not reach £300 per <yißar will bo exempt from the tax. '• In order to afford a check in allowing exemptions, provision is made in tha return for stating the names of partners in firms, so person being entitled to a deduction of ' more than £200 in respect of any interest •fa a firm, and any income derived by him- , "sell alone. To assist in collecting the tax : from those in the employ of compazines, firms., and persons, a list of employees •teceiving more than £160 will be igiveii'with each return, and in cases of government Departments and local bodies and others that are not taxpayers separate lists will be provided, and will be obtainable at Post Offices. It is not intended that income tax - shall be collected and paid by employers on behalf of employees, but each person in receipt of income will make 'his own return and pay tax in respect of;it direct. The returns now called for ..will give tii© income derived during the .jtear ending 31st- March, 1892, thereafter annual returns will be made of income , derived ia each year ending 31st March. j General exemptions are ;—- (a) General " t revenues received by or or. behalf of her * Majesty the Queen in New Zealand, (b) {fig the Governor of the colony so far as !sespeetß the emolument of his office as -Governor, (c) The revenues received by ..sasy County CoandV Borough Council, Town Board, Eoad Board, Harbour Board, pablio University or public .gahqolj Education Board, School Commisgiouers, licensing Committees, &c. (d). JBj frieadly societies and building societies, .jfe). By the owner or occupier of land in •«ew Zealand, or from the use or produce .of .each land derived by euch owner or or £rom mortgages of such land, .-except where otherwise specially provided. \ The last-named is of course most impor- , feast, as it exempts feoni the payment of tas rents of land, interest on morti gages and the income derived from the use "or produce of land by the owner or occugsisr.. Income derived from dealing in whether live stock, wool, grain or ■JWay kind of produce, is not exempted by cUus provision.