Tax Deduction Repayment

Press, Volume CVIII, Issue 31832, 9 November 1968, Page 1

Tax Deduction Repayment

(New Zealand Press Association)

WELLINGTON, November 8.

A student who was obliged to repay salary and allowances received under a studentship was also required to pay money deducted for taxation purposes, the Acting Minister of Education (Mr Adams-Schneider) confirmed in Parliament today.

He said this was so because the gross amount paid by the State for a student’s education included the amount that was paid in tax. Asked by Mr A. J. Faulkner (Lab., Roskill) for an explanation of this requirement, Mr Adams-Schneider said: “There is no reason why the Crown should be in any different position from any other employer in the private sector who is entitled to recover the full amount actually spent on a bursary.” ' Asked further by Mr Faulkner if he was aware that the Government’s decision to pursue this policy in 1963 was being retroactively applied—even to the extent of threatening court action—Mr AdamsSchneider said he was not, but would be pleased to have the point reviewed in any case which was brought to his attention.

Asked by Mr N. V. Douglas

(Lab., Auckland Central) if a student had to repay money paid out as tax, would the Inland Revenue Department refund the taxation money, Mr Adams-Schneider said it had been established that taxation in that situation was not deductible.

On the suggestion of Dr A. M. Finlay (Lab., Waitakere) that legislation be introduced to remedy the obvious inequality of the system, Mr AdamsSchneider said he would discuss the matter with the Minister of Education (Mr Kinsella) when the latter returned from overseas.

Workshop Fire.—Fire damaged a workshop and shed at 87 Daniels Road about 4.13 p.m. yesterday. An engine from Harewood and one from St Albans attended the fire Which did not cause extensive damage. The property is owned by Mr B. K. Brunie.