RETURNS OF INCOME

Hawera Star, Volume LIV, 4 May 1934, Page 5

RETURNS OF INCOME

PENALTY FOR. NEGLECT. Furnishing a return of income is an annual duty imposed by Jaw on all companies and persons in business, whether for the whole or part of the income year and irrespective of whether a profit or loss was made; also by ail persons in receipt of income from salary, wages, bonus, allowances, interest, rent, annuity or other annual payment, where such income in conjunction with income front free-of-tax Government securities, company debentures issued free of tax, and from dividends or other profits from shares in companies trading in New Zealand exceeds £2OO per annum. Returns are required annually from such persons notwithstandiiig that by reason of the special exemptions allowable by law they may not be- liable for tax.

Form No. 3, .which is now obtainable ut. all post off ices, is the form to be utilised by all individual taxpayers, partnerships, estates, and commercial, industrial, or investment companies. The return should be completed and forwarded to the Commissioner of Taxes, Wellington, Cl, on or before June 1. If for any reason the return cannot be furnished by the prescribed date application should be made for an extension of time. Where returns are accepted compiled to a date subsequent to March 31 they should be furnished within two months of that date.

Any person required by law to furnish a return and neglecting to do so is liable on conviction to a penalty not exceeding £IOO. Neglect to furnish returns at the prescribed time not only renders taxpayers liable to prosecution, but also results in many cases in an assessment of considerably more tax than would otherwise be payable. In the absence of a return the Department lias power to make an assessment of an amount on which it is considered tax ought to be levied. The acceptance of the “ estimated assessment does not, however, absolve the taxpayer from the duty of furnishing a return. If the tax payable under the estimated assessment is more than the amount payable on the taxpayer’s actual assessable income, the taxpayer may render himself liable for the higher amount in addition to prosecution for failure to furnish the return at the prescribed time. If the tax payable under the estimated assessment is less than the amount of tax payable on the taxpayer’s assessable income, the taxpayer may render himself liable to a penalty of treble the amount of such deficient tax in addition to prosecution for failure to furnish the return at the prescribed time. Reports of prosecutions for fan are to make returns in the past should be taken as a warning, and all persons liable to furnish returns are therefore advised in their own interests to forward such returns on or before June I.