Tax exemptions

Press, Volume CXI, Issue 32587, 22 April 1971, Page 12

Tax exemptions

Sir,—Few people query the need for taxes but I am sure many Canterbury taxpayers must be querying the efficiency and administration of the local Inland Revenue'Department On a popular radio programme this morning we heard the “Tax Man” advise several people that the wife exemption is $375. But in their pamphlet we read that the wife exemption is $275. Are some wives more exempt than others?—Yours, etc., sss WIFE.

April 15, 1971. [The District Commissioner of Taxes (Mr C. K. Jones) replies; “While the point has not been commented on by anyone else, if, at any time in the programme I confused the figures referred to, I apologise. Your correspondent is correct of course and the wife exemption is $275, The figure of $375 is the income that a wife may earn before the exemption that a husband may claim is affected. Where the wife’s income exceeds $375, the wife exemption of $275 allowed to the husband is reduced $1 for every $1 by which her income exceeds $375, so that if her income exceeds $650, no wife exemption is allowable to the husband. This position is clearly set out in the pamphlet, ‘How t« fill in your 1R.5 return of income,’ which may be obtained from this department or any post office. The radio session was, of course, part of the campaign to assist taxpayers who are completing their returns of income at this time of the year. In addition, staff from the department will be at local city stores, malls and post offices towards the end of this month and during May on dates which will be advertised in this newspaper on April 27. The department’s inquiry counter on the second floor of the Government Life building will also be open each Friday night during May. We hope this service will be used by people who need assistance in completing their returns.”]