TAKEN FROM WAGES

Grey River Argus, 15 December 1942, Page 1

TAKEN FROM WAGES

Defaulter’s Income Tax

WELLINGTON, Dec., 5

“Every firm will become a collector for all the Government departments if this prinicple is carried further,” said the President of the Wellington Chamber of Commerce, Mr. A. L. Wall, commenting on the new system by which the Commissioner of Taxes may require firms to deduct from the wages of income tax defaulting employees and pay over to him such sums' as he may direct in liquidation of the employees’ income, tax dept.

The council of the chamber had before it a letter sent bv a member firm to the commissioner following receipt of an instruction to deduct weekly sums from an employee’s wages. The firm recorded its objection to the practice since it might tend to upset the relations between a firm and its employees, and. also. objected to the firm being cited as a debtor in the notice to collect sent out bv the commissioner.

Mr. M. G. C. McCaul said their forbears had fought for many years to prevent employers getting employees into their financial clutches and then deducting money from their wages before they were paid to 'them. As enlightenment had come the Truck Act had been passed. This made illegal any deductions from wages before they were paid over, and the firms had to hecover their money by the normal processes. “The present Government, it apnears to me, has cut right through this principle of freedom,” he said. He had no sympathy with the defaulting employee; any such defaulter was only letting down his fellow taxpayers. The council decided that, since the matter had been taken up with the Minister of Finance by the Taxation Committee of the Associated Chambers and the Minister’s reply was awaited, further' consideration should be deferred.