INCOME TAX METHODS

Evening Star, Issue 23352, 23 August 1939, Page 8

INCOME TAX METHODS

EARLY ISSUE OF ASSESSMENTS 1936 AMENDMENT TO ACT RECALLED POWERS RESTING WITH THE COMMISSIONER The early issue of income tax assessments regarding the amount of tax normally payable in February next year has occasioned a considerable measure of surprised comment. It is true, of course, that an assessment notice is in no sense a demand for the tax held to be due (states the Auckland ‘Herald’)- Every taxpayer concerned has the right to object to his individual assessment, and the actual tax does not become payable until the issue of the official demand. The normal procedure, however, is for assessment notices to make their appearance about November of every year, and their early issue on this occasion has caused speculation as to the intentions of the Government in the collection of the tax. The Budget has already indicated that the amount of statutory exemption on all incomes will be reduced from £2lO to £20(1This will have the effect of bringing many additional wage earners and others within the range of the taxgatherer’s net, and it may _be that early assessments are, being issued in order to cope with the potential increase.

But another possibility also arises. In its Land and Income Tax Amendment Act of 1936 the Government took power to demand the payment of income tax by instalments on two or more dates in any one year. This power can be invoked by Order in Council, and even though the annual taxing Act may not have; been passed, the Commissioner of Taxes is authorised to determine the amount of instalments payable on the dates fixed by regulation. It is possible, therefore, that the Government may be issuing early assessments with a view to obtaining a portion of this year’s tax before Christmas. Whatever is intended, a_fu]l statement should be made immediately, so that taxpayers, who will have to meet a higher levy on incomes this year than ever before, may know exactly what is expected of them.

CLUTHA AND MOLYNEUX SHARES Press Association—By Telegraph—Copyright LONDON, August 22. (Received August 23, at 11 a.m.) Share quotations : Clutha River Company —buyers 10! d, sellers Is IJd; Molyneux River Company—buyers 3d. sellers 4!d.