CHARGE ON INCOME

Grey River Argus, 30 July 1940, Page 2

CHARGE ON INCOME

National and Social

Security

In this issue appears an intimation from the Commissioner of Taxes with regard to Social Security and National Security charges on income. National Security tax of Is in the £ is imposed in respect of all income subject to the Social Security charge of Is in the £. It applies to the same persons trustees and companies as are liable for the latter charge and is payable in the same manner and on the same dates. All the provisions of the Social Security Act, 1938, and the regulations thereunder are made applicable to the National Security tax. The position is the same as if the Social Security charge were increased from Id for every Is 8d to 7d for every lOd (2s in the £) and the Social and National Security charges are to be collected on this basis accordingly. The increase in the charge, however, is limited, in respect of income other than salary or wages derived during the year ended 31st March, 1940, to 31st August, 1940 and subsequent quarterly instalments of the charge thereon. In respect of salaries and wages, the increase in the charge is limited to amounts derived in respect of any period after the 21st July, 1940. The three quarterly instalments of the current year’s Social Security! charge, on income other than salary or wages, due on the Ist August and Ist November, 1940, and Ist February, 1941 (computed on the basis of the old rate of Is in the £ on income derived during the year ended 31st March 1940) will be payable at double’ the amount thereof in each case and be subject to a penalty of 10 per cent, on any amount not paid within one month of due dates. Payments on this Jiasis will be required in cases where only the May, 1940, instalment of the Social Security charge has been paid. The immediate liability will be in respect of the instalment due on the Ist August, 1940 which will be subject to a 10 per cent, penalty if not paid within one month of the due date. In cases where the four quarterly instalments of the 1 Social Security charge have already been paid in full, the total National Security tax payable for the current year will be an amount equal to a total of the last three instalments of the Social Security charge or three-quarters of the total Social Security charge already paid in full.

Salaries and■ wages will be subject to deduction of the charge at the increased rate of Id for every lOd or part thereof from amounts derived in respect of any. period after the 21st July, 1940. All persons ordinarily resident in New Zealand, who have attained the age of 16, are liable for the combined Social and National Security charges. In the case of persons in receipt of a total disability war pension, however, the liability is limited, as previously, to the charge on salary or wages earned. Persons in doubt as to their liability are advised to make enquiry at the nearest Money-order office as early as possible during August, in order to avoid penalties for late payment. REGISTRATION’ FEE. A quarterly instalment (ss) of the Social Security Registration Fee payable by male persons twenty years of age or over becomes due on the Ist August, 1940. Failure to pay any instalment renders a defaulter liable, on summarj’- conviction, to a fine of £5. In addition a penalty of sixpence per month (with a maximum penalty of 2s 6d) accrues if payment is not made within one month of due date. Employers may deduct any overdue registration fees from the,

wages payable to employees. The quarterly instalment registration fee coupon-books at present on issue to male persons expire with the August, 1940, instalment. New books cover-

ing subsequent instalments are to be issued when payment of the August instalment is made. Persons, who have paid in advance are required to obtain a new book.