INCOME TAX THIS YEAR

Evening Post, Volume CIX, Issue 121, 26 May 1925, Page 7

INCOME TAX THIS YEAR

FARMERS AND DIVIDENDS.

"Subscriber," a farmer correspondent, wished to know "if it is necessary for farmers t.o fill in the income tax this year." "The Post" is officially informed, in reply to this question, that farmers deriving their incomes from farms are exempt from payment of income tax on such incomes. But no particular class of persons as a class is exempt from income tax. Only certain classes of incomes are exempt, and these include those derived from farming. Farmers receiving income from sources other than farming will be required to state the fact.

As to the new section in the income tax schedule requiring information to be given to the Commissioner by the taxpayer of amounts received during the year by' way of dividend from companies, it may be necessary to again state for taxpayers' information that it is not proposed tin's year to assess them for taxation. But, it is required that the name of the company and the amount of dividend on ordinary and preference shares and bonuses be stated if the company is registered in New Zealand. If dividends arc derived from companies, not trading in New Zealand then no particulars of them need be furnished to tlie Commissioner; providing such outside companies pay income tax in Great Britain or tho British Dominions. The information, as to dividends from .shares is required by tho Government this year, but not necessarily for purposes of. assessment. Interest received on Government, public body, and company, and other debentures, is 'not required to be stated in the schedule.