TAXATION PITFALLS

Ellesmere Guardian, Volume LVI, Issue 41, 24 May 1935, Page 7

TAXATION PITFALLS

TRAPS FOR UNWARY.

There is a light side to the annual unpleasantness of furnishing income returns and signing other declarations required by the Commissioner of Taxes. It is provided by a study of the subtle differences that occur in the forms each year. They speak of a constant battle of wits between the Commissioner and the payer of dues who is not over-conscientious, says the "Auckland Herald."

It is a number of years since the Taxation Department caught in its net a host of salaried workers who had avoided their obligations by the simple expedient of not furnishing returns. This was done by the adoption of a' return in which employers were required to state the, salaries paid their employees. It acts to-day as a check , upon the payer who is too modest concerning his wages. This year the Commissioner has gone one better by asking taxpayers to give information against their landlords as to the amounts paid the latter as rent; Any details supplied will be used as a check on the statements of the landlord concerned.

There is a neat trap for the unwary in this year's declaration of income other than salary or wages for unemployment taxation purposes. Previously on the declaration form there was only one statement,to be filed in respect of dividends from companies. Now the taxpayer has to divide this into two parts, one concerning his income from companies trading in New Zealand, and the other dealing with income from companies trading outside the Dominion. Simple enough, it may be, but the taxpayer should take care and see that his statement regarding the companies trading in'New Zealand corresponds with a similar statement on his return of income for income taxation.

The Commissioner of Taxes does not receive many bouquets, but there are taxpayers who admire a wonderful system of cross-indexing and cross-checking of the great volume of information from all sources that goes into his office.