Tax Forms

Press, Volume C, Issue 29600, 24 August 1961, Page 5

Tax Forms

Sir,—lt would be of interest to learn to whom we are indebted for the compiling of the complicated and obtuse tax form, 1.R.3. Why the present Government, eight months in office, allowed such a document to be issued, is beyond my comprehension. Nothwithstanding that the personal exemption for widows and single persons is £468, elderly people on small fixed incomes (some considerably below the £468 exemption) are, through the provisional tax section of the form, being called or to contribute tax. —You re, etc, SHAMEFUL. August 16, 1961.

[The District Commissioner of Taxes (Mr D. A. Stevens) said: “It must be remembered that the , form 1.R.3. is designed to cover taxpayers in widely differing circumstances and , with a great variety in types and amounts of income. A further point is that certain classes of income are liable for both ordinary income tax and social security tax, while other classes, such as dividends ■ and universal superannuation, are only liable for ordinary income tax. The design of the return form must take into account all these factors, but the department is continually seeking ways of improving and simplifying the form and has the asssitance in this matter of the New Zealand Society of Accountants and other outside bodies. Regarding the reference to tax being payable where the total income is less than £468, it is pointed out that the personal exemption of £468 applies for ordinary income tax purposes only. In general, social security tax will be payable where the total income exceeds £104.”]