EXEMPTIONS FOR CHILDREN

Press, Volume LXXXII, Issue 24866, 4 May 1946, Page 6

EXEMPTIONS FOR CHILDREN

INCOME TAX RETURNS THIS YEAR (P.A.) NEW PLYMOUTH. May t Contrary to the common belief, exemptions for children will be allowed in the assessment of taxation for the year ended March 31. 1946. Under IM recent legislation providing for family benefits, the exemption for wives » increased from £5O to £lOO, with the result that the taxpayer’s total exemptions will be £6O greater than they were last year even though he is recelvlhf universal family benefits for his children. For the year ended March B, 1947, however, the legislation has excluded exemptions for children. With the introduction of universal family benefits the exemptions from taxation were amended to provide for an idcrease in the exemption for the talwife to offset or eliminate the £5O exemption in respect of each Child dependent upon the taxpayer. This has led many taxpayers to believe that they would not be allowed exemption for their children for the year ended March 31. 1946. because now receiving the family When it was pointed out to the Commissioner of Taxes (Mr F. G. Oborn) at Wellington bv telephone to-day that confusion among taxpayers concerning the application of exemptions for the year ended March 31, 1946, with particular reference to exemptions w children, he explained that exemptiOM for that year were £2OO for the payer. £lOO for his wife, and £5O w each child. , . He said that the recent legislrtg provided that exemptions for cnildwn should not apply if the taxpayer was in receipt of the universal family benefit during the income year on ww the tax was being levied. The unlw* sal family benefits, however, were M* paid during the year ended March au 1946.