TAX OBLIGATION

Evening Post, Volume CXXXI, Issue 102, 2 May 1941, Page 9

TAX OBLIGATION

MAKING OF RETURNS

A FARMER'S INCOME

Whether or not anyone, these days, is unaware of his obligation to send in an income tax return was the subject of discussion in the : Magistrate's Court today, when John Hugh Marshall, a farmer, was charged .before Mr. J. H, Luxford, S.M., with failing to send in x'eturns of income for the years 1936, 1937, 1938, and 1939. He pleaded guilty to all four charges, and was fined £2 on each charge, with costs.

"I 'don't want to say that this is a bad case so far as the amount of tax involved is concerned," said Dr. N. A. Foden, who appeared for the Department, "but I think I am justified in saying that Mr. Marshall has put the Tax Department to a considerable amount of trouble, and that h^e has been remiss in not sending in liis returns when he must have been well aware that it was encumbent upon him to do so."

The Magistrate: Is anyone unaware of that these days?

"We hear it mentioned in Court {hat people are unaware that they have to send in returns," said Dr. Foden.

The Magistrate: I suppose there are some anachronisms left in the world.

"Unfortunately, some people have a bona fide- belief—and Marshall is one of them—that in certain years they are not obliged to render returns," .said Mr. A. J. Mazengarb, who appeared for the defendant. v

Counsell said that Marshall was a sheep farmer who was shocked when he received a demand, for a five-year period, of over £1300. What occurred, said Mr. Mazengarb, was that Marshall had come within the land qualifications, and had also had a very successful speculation in wool. He was of the opinion that, this isolated transaction, as he was not:in business as a woolbroker, was not subject to income or social security taxes. On his farming operations he was making nothing, and he believed that he was therefore not obliged to make returns. ■