TAX AND CENSUS

Manawatu Standard, Volume LVIII, Issue 121, 22 April 1938, Page 8

TAX AND CENSUS

DECLARATIONS OF INCOME. SMALL FARMERS’”NEW PROBLEM (By Telegraph.—Special to Standard.) WELLINGTON, April 22. The filling in of official forms is not a popular pastime, although the problems involved have frequently to be faced, and they take oil a. new complexion in this year’s declarations of income, required before the next instalment of the employment levy becomes due. Small farmers and many others "’ho have had no occasion to face the task of an income ta.x return will find that this annual process of collecting employment tax other than salary or wages is being utilised to make a complete survey of incomes, and that much of the intricacies of tho income tax schedule has teen introduced into the new form which replaces that dealing •with declaration of income other than salary or wages. Thosg. who render income tax returns will not be seriously concerned in the section of the new form which they are required to complete, excepting that they must disclose, not only the figures relating to income on which wage tax has not been paid during the past.year, but they must show the "hole of thenincome, classified under the headings of wages or salary, and that of “other sources” detailed in the usual return. FARMERS’ BALANCE-SHEETS. A large section of the new form is devoted to the use of farmers who do not render an income tax return. In such cases they will be called on to show in detail the grows income derived from the business of farming or dealing in livestock during the year. There is space for a detailed enumeration of the numbers and value of all livestock owned at the beginning of the year, also stocks of grain, fruit, hops, tobacco or other produce, and for purchases of stock during the year for which the return is being, made. Then the same category is repeated at the end so that the producer may enter the sales of livestock and produce, any other farming income, and (if an employee) the rental value of free house and rations if provided. Finally the stock account has to be balanced by an enumeration of livestock owned at the date of completing the return. The farmer must include for income assessment purposes the estimated value of meat, milk and other produce of his farm used for private or domestic purposes daring the year. Over a dozen items of expenditure must be stated, and these are important to the taxpayer as they all combine to reduce tho net taxable amount. OCCUPATIONAL CENSUS.

The conversion of the old wage tax of 8d in the £ into a social security tax of a shilling on every £ of income increases the importance of closing _ up every loop-hole of possible evasion, hence the importance of the industrial and occupational census which is being taken through the Post Office on this occasion. This section presents only minor problems of “filling in.” Sex and age have to be shown and the occupational status clearly defined. Wives and dependants, pensioners and relatives not receiving wages "-ill write N.A. (Not Applicable) in that section of the return.

Occupations are to be explained under two headings, the industry and the branch of the industry in which the taxpayer is employed. Then the actual calling in the industry must also be detailed, while State employees must mention their department, and local body employees the name of the public authority for which they work. If unemployed, mention must be made whether sustenance is being received, or the person is employed on scheme 5 works.

In summarising gross income, taxpayers are directed not to exclude such items as wage tax, superannuation union fees, insurance and similar payments. The forms have to be completed by May 31. as a levy then becomes due. Women have to declare their total income, but tax is payable on £SO less than the amount declared, and the return must be furnished by all women of 20 years and over.