INCOME-TAX EXEMPTIONS

Hawke's Bay Tribune, Volume XXIV, Issue 9, 21 December 1933, Page 6

INCOME-TAX EXEMPTIONS

Women Who Support Husbands ALLOWANCE FOR HOUSEKEEPERS By Telegraph—Press Association. WELLINGTON, Dec. 20. The Land and Income Tax Amendment Act of last session granted an exemption of £5O for a married man in respect of his wife. Provision is made in a bill introduced in the House of Representatives to-day to grant the same exemption to a woman who supports her husband. Cases of hardship have arisen where a widower or widow has to pay a housekeeper to look after children, and the same allowance is now proposed as if the housekeeper were a wife, or, in the case of a widow, a husband.

Public amateur sports bodies such ag the New Zealand Rugby Union, Cricket Council, etc., are granted exemption from tax on income other than gate receipts. Gate receipts were never assessed, but interest from investments was. The new provision gives total exemption.

It is proposed to exclude from exemption the premiums paid on a spec, ial class of insurance policies which are purely investments. These policies require no doctor’s certificate, and in tho case of death tha premiums only are returned. It is held that exemtion in such cases was not contemplated by the original Act, in which the intention was that provision for dependents after death should be encouraged.

A special provision applicable to assessment of income tax on interest on capital borrowed out of New Zealand states that the amount deducted from tha total income by the borrowing company in respect of interest on such money shall be separately assessed, and that the tax on it will be charged against the lenders of the money.