Result pleases lawyer

Press, 7 December 1988, Page 6

Result pleases lawyer

PA Wellington Individual workers could be overtaxed by amounts ranging between $5OO and $lOOO because of the State Services Commission’s miscalculations, an accountant, Mr John Rex, of Rotorua, says.

Mr Rex, who discovered the discrepancies, said yesterday he was pleased to have been vindicated in what had been a “hell of a performance” with the Inland Revenue Department office in Rotorua. He had, however, received “total co-opera-tion” from I.R.D.’s head office in Wellington. While pleased he has been proven right, he said nothing had really happened yet to correct the 3000 to 4000 wrong calculations he believed had been made

The problem arose because the S.S.C. had, in effect, done part of the employees’ income tax calculations for them and had understated the taxfree allowances they should have been entitled to receive. This made the statement of income on the employees’ IRl2s incorrect as they were paying tax on higher levels of income.