School Pupils Find No Difficulty With Tax Forms

Press, Volume C, Issue 29679, 24 November 1961, Page 7

School Pupils Find No Difficulty With Tax Forms

“The Press” Special Service

AUCKLAND, Nov. 23. Concerned about complaints of the complexity of its income tax forms, the Inland Revenue Department tested them on secondary school pupils, the Commissioner of Inland Revenue (Mr F. R. Mackeni told Auckland accountants. "We found that if they had the data and had read the instructions carefully they could fill in the forms correctly,” he said. “The trouble is taxpayers will not bother to read the instructions.” Mr Macken said that a personal friend had come to him in difficulties over his own form. "This chap.” he said, “knows the breeding of every horse alive in Australasia and can give you the performances of every horse running in New Zealand. When I asked him if he read the instructions, he replied: 'I haven’t got the time’.” For the average citizen there were only half a dozen facts to be mastered, and once this was done there was no trouble in filling the forms, said Mr Macken. Any complexity was due first to the legislation, and then to the ingenuity of the taxpayer and his financial advisers, said Mr Macken. Other taxation topics covered by Mr Macken were:— Suggestions that medical and school fees and gifts should be made special exemptions. The personal exemption already granted in New Zealand is worth while and greater than that enjoyed in England or Australia. Whether accountants should sign taxpayers’ returns.—lf you feel satisfied that you know as much about the taxpayers' affairs as he knows himself, it is all right. If you do not. consider the risk. It might be unwise to sign.

On the newly appointed i Taxation Board of Review’. — There is nothing more comI forting to a man in my posiI tion with wide discretionary I powers given him by legisla- ! tion to know that if I am . wrong, I can be corrected. In the long run, the board will provide a business code I and a practical guide to taxi payers through its decisions. On estimating provisional ■ tax.—This is normally done : on last year's income, but if ■ the taxpayer finds there is a significant drop in his in- . come, he is quite entitled to i make a new estimate and pay i the reduced amount of taxation. It is as important to us , to get the right amount as it is for the taxpayer not to overpay.