Commissioner Replies To Tax Query

Press, Volume CIV, Issue 30839, 26 August 1965, Page 8

Commissioner Replies To Tax Query

Factors taken into account in the calculation of tax payable by a person receiving universal superannuation and wages from a part-time job are given by the district commissioner of taxes (Mr T. M. Hunt) in reply to a correspondent signing himself “Over 70” who asks what tax he should pay on his income. The correspondent writes:— “Would you please tell me what tax I should pay on my income? I am on universal superannuation and I had a part-time job which brought me in £5OO. This was my total income, and I have received an account from the Inland Revenue Department for £46 12s, which to me seems out of all reason.” In his reply Mr Hunt says It is not possible to give a full reply without further details, and suggests that the correspondent call at the depart-

meut's office, where a full explanation can be given. “However, by making a number of assumptions it is possible to arrive at a figure fairly close to the amount of £46 12s. The assumptions are—(a) Correspondent is married; (b) His wife alse received universal superannuation; (c) His wages of £5OO were received in regular weekly amounts of £9 12s 4d (before tax) and tax was deducted for code S; (d) No provisional tax was paid for the year ended March 31, 1965: (e) Income from wages and universal superannuation will be approximately the same for the year ending March 31, 1966.

The tax assessment would ba Wages S(H) * * Universal superannuation M ” J 43 Less personal exemption £<«« 743 Less partial wife exemption (£312-2243 wife’i universal superannuation) . £W 537 Balance Ordinary Income tax on £2O« at »/- In the £ less 10 per cent 27 IS 1 Social security income tax on £5OO less £lO4 exemption 20 14 o Less P.A.T.I. tax deductions oa £5OO H 31 10 0 23 14 7 Plus provisional tax for 1965/00 (being virtually P.A.Y.E. tax on universal super, currently being received) 220" £45 14 2 "Tn effect, the liability of visional tax on game for the £45 14s 2d represents ordin- current year.” ary income tax on universal _. l Th ,'? information will .. , .. sist other persons in a sumsuperannuation for the pre- lar position.—Ed, The ceding year together with pro- Press."]