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NON-ASSESSABLE INCOME

Repeal ot the non-assess-able income provisions of the Land and Income Tax Act 1954 is recommended by the Taxation Review Committee in its report tabled in Parliament last week. The report states that the only practical application of the non-assessable income concept is in taxing of companies which, in addition to ordinary assessable income, derive dividends from other companies. As a consequence the income tax liability of a company is increased. The amount of additional income tax paid by companies through having non-assessable income included in their assessments for tax rate purposes is estimated by the Inland Revenue Department at $300,000 * year. For individuals the application of the non-assessable income concept is so rare as to be exceptional and it is extremely unlikely that any additional revenue is assessed. Repeal of the non-assessable income provisions would be a simplification of the tax system of some significance and would involve a very minor cost to Government revenues.

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https://paperspast.natlib.govt.nz/newspapers/CHP19671107.2.86

Bibliographic details

Press, Volume CVII, Issue 31520, 7 November 1967, Page 13

Word Count
158

NON-ASSESSABLE INCOME Press, Volume CVII, Issue 31520, 7 November 1967, Page 13

NON-ASSESSABLE INCOME Press, Volume CVII, Issue 31520, 7 November 1967, Page 13