AMENDMENTS TO TAX ACT

Press, Volume XCVII, Issue 28492, 23 January 1958, Page 12

AMENDMENTS TO TAX ACT

Provisions In New BiU (Now Zealand Preu AMociaMon) WELLINGTON, January 22. The main provision at the Land and Income Tax Amendment Bill introduced into the House of Representatives today is that it substitutes a rebate of £lOO or the amount of the tax. whichever is smaller, for the' previous Government’s rebate of 25 per cent (with a maximum of £75) allowable to individual taxpayers. The rebate applies to tax payable on income earned during 1950-57 and due to be paid on February 6. Another major provision In the bill orders the payment within three years of the Social Security charge on income, other than salary or wages, derived in .the year ending March 31, 1958. This year is the transitional income year preceding the changeover to P.A.Y.E. on April 1. It was originally planned by the former National Government that the Social Security charge should be entirely rebated, but it later decided to make this charge payable at death or when the taxpayer left New Zealand permanently. The bill lays it down that this Social Security charge is to be paid in three equal instalments—on November 7, 1958. June 7. 1959, and June 7, 1960. Earlier payment must be made if the taxpayer dies or leaves New Zealand. A taxpayer may voluntarily pay the whole of this due on or before December 7, 1958. By doing this, he can gain a rebate of 5 per cent. The tax is to be paid at the usual rate of 1/8 in the pound or at the rate of Id for every 13 l-3d earned. The rebate of £7 10s—on the Social'Security charge as offered by the National Government is continued in the bill. The bill also includes some miscellaneous provision. Special assessments for tax on income earned on or after April 1, 1958. and provisional tax for that year are to be calculated on the tax provisions as set out in the 1957 Land and Income Tax (Annual) Act. This is, in fact, the National Government’s rebate of 25 per cent, with a maximum of £75. The rebate is also worked into the P.A.Y.E. taxation tables.