Dept. Endorses Tax Payment Scheme

Press, Volume CVI, Issue 31153, 1 September 1966, Page 3

Dept. Endorses Tax Payment Scheme

(New Zealand Press Association» WELLINGTON, August 31. The Inland Revenue Department supports a scheme of easy provisional tax payments started by a Napier firm of public accountants.

The firm wrote to the department telling how it aided its clients financially by levelling out the peak payment of tax payable by March 7. It suggested that the clients should voluntarily increase the first instalment of provisional tax from one-third to one-half. They would then have to meet only one-half instead of two-thirds provis-

ional tax for the second instalment on March 7. Most accepted the proposal. The department suggests that people required to pay the second instalment of provisional tax at two-thirds by March 7 might find it a strain on finance for three reasons. One is a heavy drain on funds over the Christmas and New Year period. The second is that rates and employer and public risk insurances are due in March and April. As well, people might have to provide for unproductive wages for statutory holidays in the period, including the Easter break. The department adds its own footnotes on the scheme. “But if you think that onehalf of the provisional tax is too much to pay as the first instalment, a voluntary increased payment of any amount above the amount of one-third normally due is quite in order.” It also repeats the reminder that the first instalment of provisional tax is payable on September 7.