INCOME TAX

Evening Star, Issue 16779, 6 July 1918, Page 1

INCOME TAX

DEDUCTIONS FROM DIVIDENDS. [Special to the 'Star.'] WELLINGTON, July 6. The. (;omm.iss;o..er of Taxes has recently circularised jniWiu companies requesting a return of the dividends paid .to individuals. This has caused some apprehension, quite justifiably in these times when tint finance .Minister is known to be lu-.:n.ly on the look-out far more revenue. Hut this time the fears aro without daiiiou, for the intention of the department, is just the. reverse. Some effort is to be made to meet the anomaly of deducting iron; companies a high Income Tax, which is, in many c-ascs, taken out of the pocket of a small shareholder who should not be failed on, by reason of small income, to contribute to the Income Tax. A system of iehat.es is in force wider last year's •Finance Act,, but the procedure is not tak<?n advantage" of extensively, for the reason that this class of pea-son is not well np in the intricacies of the Law, and toe much trouble is involved in getting- the r<* bate. It is in the hops of devising some eornitablo scheme to meet the anomaly of taxing persons of small income, who should not be taxed in this way, that the department is secr.iinj; a statement of dividends paid to individual shareholders. The information will enable it to ascertain the cost of two or three schemes of relief which air© under consideration, and which will have to form iiie subject of amending legislation. Therefore it, is necessary, in the interests of an unfairly taxed class of the commitnity, that company officials should promptly iv.nd.--r tlic- return to the Income -"ax Department, as .u. is not contemplating further inroads on revenue, but hoping to make a badlv-nceded concession.