INCOME TAX

Evening Post, Volume CIX, Issue 92, 21 April 1925, Page 8

INCOME TAX

DIVIDENDS FROM COMPANIES.

O\ying to a rearrangement in the compilation of the income tax form a doubt has arisen as to how the information is to be supplied, and,as to whether income derived from dividends drawn from companies is to be specially taxable. The Taxation Commission last year recommended in its report to the Goveminent that legislation be passed instructing and empowering the Commissioner of Taxes, when obtaining future income tax returns, to compel the individual to include in his return the whole of his income from all sources, specifying the amount from each sourco separately. * In accordance with this recommendation the schedule has been altered by regulation for the purpose of ascertaining the amount of income derived from dividends, but there is no intention of levying double taxation. A taxpayer will be assessed according to his income as previously, apart from dividends. As was recognised by the Commission, all the data regarding dividends and other separate sources of income will not be compiled before the end of this year, and before then it wDI not be possible to decide whether or not a complete change can be. made from the present system of taxing companies direct as individuals- to the system of taxing every individual upon his total mcomo from all sources. This will be a matter for deliberation by the Parliament to be elected this year. a +«? ! ri"?ation Commission recommendrfiffip it a _ complete change is found difficult, or impracticable, a beginning should be made by taxing individual! in respect of tho dividends received by in^h. comPt nie.s> and supplementmg the revenue obtained in this way by Sanies 0 flatrai6OnaUthe Pr^^