COST OF BUYING TEXTBOOKS

Press, Volume XCVII, Issue 28701, 26 September 1958, Page 8

COST OF BUYING TEXTBOOKS

Tax Deduction Rules

The distinction made between self-employed and salaried professional persons in the remission of income tax for books and equipment used in their work is explained by the Minister of Education (Mr Skoglund) in answer to representations by the New Zealand Educational Institute. “I am informed that for taxation purposes a distinction is made between the self-employed professional man and the professionally qualified employee,” Mr Skoglund says. “The doctor or lawyer in private practice incurs certain business expenditure, which is deductible from his gross fees. “For example, the rent of business premises or the cost of maintaining a library for reference purposes is deductible, although the initial cost of establishing the library is not deductible. On the other hand, a, doctor or solicitor in a salaried post does not enjoy those tax remissions, for it is considered that expenditure on books, equipment, fees, etc., is incurred in fitting himself to render services for which he is paid. "In short, no professional man in employment, whether in the medical, legal, accountancy or any other profession, is granted any tax remission for expenditure on books or equipment. “In view of this, I do not think I would be justified in pressing on behalf of members of the teaching profession for concessions which are not available for members of other professional groups. I am sorry I cannot support your remit, but I think you will agree that it would be difficult to make a case for preferential treatment of this kind,” Mr Skoglund says.