UNEMPLOYMENT TAX

Hawke's Bay Tribune, Volume XXIV, Issue 237, 19 September 1934, Page 7

UNEMPLOYMENT TAX

Half-Million Men Liable TRACING OF DEFAULTERS Inspectors Searching Records [By Telegraph—Special to “Tribune”’) WELLINGTON, Sept. 19. Nearly half a million males are liable for unemployment taxation in the Dominion, according to 'the report of the Unemployment Board 1 . The report states that inspectors arc busy searching the records for evidence of nonpayment of taxation, and a considerable amount of money has been recovered in this way. At March, 1934, there were some 493,000 males on the register kept by the Post and Telegraph Department in accordance with section 10 of the Unemployment Act. This figure represents an increase of approximately 12,000 registrations during the year, and includes all inales aged 20 years or over ordinarily resident in New Zealand at the time the Act came into force, together with those males who have attained the ago of 20 years since December, 1930, and males aged 20 years or over who subsequently arrived in the Dominion with the intention of becoming permanently resident. Excluded from this figure are those males who have died or have left the Dominion permanently after registration under the Act. In other words, the register is a fairly accurate record of all males aged 20 or over (including Maoris) permanently domiciled in New Zealand at the date mentioned. It is used mainly as a basis for the collection of 'the special unemployment relief taxation. Cash payments of the wages tax a.re made to permanent post offices, which also are responsible for the sale of stamps. Out of the total of £2,891,715 received into the Unemployment Fund' from the charge on salary or wages, £1,492,944 was paid in cash and £1,428,771 accounted for by the sale of special relief tax stamps.

In October, 1932, inspectors were detailed to investigate the payment of wages tax, and up to May 26, 1934, 41,192 inspections had been carried out, resulting in the recovery of £35,351 additional tax. An investigation of taxpayers’ records for the payment of the emergency unemployment charge on “other income” is being carried out by the Land and Income Tax Department inspectors during the course of their own inspections. Quite a number of persons/ however, while exempt from the payment of income tax, are liable for the payment of the unemployment charge on “other income.” The board has recently appointed a number of qualified accountants to investigate tho declarations of these persons, and the results obtained to date fully justify their appointment. While the majority of the breaches are dbe to ignorance of the law or 'to insufficient records being kept, it has been found in some cases that taxpayers have deliberately avoided payment of the tax. In these eases prosecutions have been taken.