Therapeutic crafts may be taxable

Press, 18 July 1979, Page 12

Therapeutic crafts may be taxable

Some elderly and disabled people who make handicraft items as therapy may be liable for the sales tax announced in May. Few long-term hospital patients or former patients in Christchurch are thought to receive more than the SIOOO exemption figure from the sale of handicraft goods each year. However, the Customs Department has confirmed that any who do are liable for taxation on the same basis as other groups. The North Canterbury Hospital Board’s chief occupational therapist (Miss J. E. Davidson) has said that she was awaiting clarification on the sales tax from the Health Deartment. Miss Davidson said she was unaware of any patient who would now exceed the exemption figure with the sale of cane-work, weaving or other skills taught as therapy. However, there might be a small number who earned more than a SIOOO, working from home after discharge from hospital, she said. Miss Davidson said she did not know how the tax could be applied if it were found to

affect work in hospitals. The teaching of crafts and hobbies was a remedial or supportive therapy, she said. Taxing income from the product of this would "not be a very helpful thing for our patients.’’ The chief customs officer concerned with the sales tax (Mr B. J. Kearns) said he knew of no patient or former patient who was' licensed or required to pay tax on handicraft items. Mr Kearns said he would be surprised if any did earn more than $lOOO a year. If any cases came to the department’s notice "we will have to exercise some forbearance and look at any situation that arose,’’ he said. “There is no likelihood of the department’s pursuing this type of person relentlessly,” he said. There was some flexibility in collection of the tax. Mr Kearns pointed out that many items produced as part of therapy would not qualify for the sales tax anyway. He said the department was not giving any special attention to the licensing of home craftsmen who were liable to pay the tax.