TAX ON INCOMES

Manawatu Standard, Volume LVIII, Issue 276, 20 October 1938, Page 8

TAX ON INCOMES

PAST YEAR’S FIGURES. RETURNS. Income statistics for the 1937-38 tax year show an increase of 33 per cent, in total of all classes of assessable income and of 41.5'per cent, in the total tax assessed,, according to details published in the latest Abstract of Statistics. The 1937-38 assessable income was £91,873,189, against £69,077,678 in the previous year and £59,495,601 in 1935-36. The tax assessed in the past year was £9,130,042, compared with £6,454,117 in 1936-37 and £4,264,453 in 1935-36. TWO YEARS COMPARED. Totals for the past two years are as follow:—

Compared with the previous year the figures for the Class I. (individuals) show an increase of 38,730 in the number of returns to 188,049, an increase of 29,515 in the number of taxpayers to 110,045, an increase of £18,257,327 in the amount of assessable income to £73,014,832, and an increase of £1,378,583 (59.4 per cent) in the amount of tax assessed to £3,699,679. In Class 11. (companies) there were increases of 924 in the number of returns to 5997, of £4,597,123 in the amount of assessable income to £18,499,042, and of £1,305,653 (32.1 per cent) in the amount of tax assessed to £5,377,162. LEVELS OF TAXATION. The numbers of individuals and companies paying tax at the various levels for the past year were:— Assessable Income. Individuals Companies

The classification in the past year has been extended to incomes of £20,000 and over. In the previous year 10 individuals were shown as having incomes of £IO,OOO and over. The following table shows the total assessable income for certain classes of individuals: —

Of 188,049 individuals covered by the statistics, no fewer than 102,21 S

(54.4 per cent.) had assessable income of less than £3OO, their incomes aggregating £24,283,259. A further 58.421 (31 per cent) with aggregate assessable income of £21,411,930 had assessable incomes ranging between £3OO and £499. INCREASES OF VARIOUS CATEGORIES. Increases in the 1937-38 tax year over 1936-37 in the class for individuals are as follow : Assessable Sizo-of-income Returns income Tax

Totals 38,730 £18,257,327 £1,378,583 Although incomes bleow £IOOO were responsible for £12,715,837 of the increase in assessable income, they accounted for only £332,231 of the increase in the amount of tax assessed.

Of the 5997 companies, 2467, or 41 per cent, had assessable income of under £3OO. The combined assessable income of these 2467 totalled only £264,021, or 1.4 per cent of the total for all companies. The 280 companies with incomes of £9OOO or over (the maximum rate is reached at £8950) represent 4.7 per cent of all companies, but account for 69.6 per cent, or £12,868,655, of the aggregate assessable income for this class.

1937 38. 1936-37. Returns (No.) 195,578 155,677 Taxpayers (No.) .. 117,574 86,888 Earned income £63,663,202 £46,053,072 Assessable inc 91,873.189 69,077,678 T’l returnable inc. 95,940,109 72.371,195 Exemptions ' 48,934,838 38.274,512 Taxable balanco .. 42,938,351 30,803,166 Tax assessed 9,130,042 6,454,117

Under £200 6.887 1,965 £200-300 33,954 502 300-400 27.870 415 400-500 14,084 230 500-600 7,930 248 600-700 1,720 181 700-800 3,130 192 800-900 ■ 2,225 146 900-1000 1.545 138 1000-2000 5,775 795 2000-3000 1,167 339 3000-4000 ...: 388 178 4000-5000 154 143 5000-6000 90 85 6000-7000 51 7000-8000 30 37 8000-9000 17 22 9000-10.000 ... 12 15 10,000-20,000 ... 19 121 20.000 rind over 6 — 20,000-30,000 — 43 30,000-40,000 ... — 23 40,000-50,000 • 14 50,000-100.000 .. ' 39 100,000 and over — 25 Totals 110.045 5,997

Assessable Tax income assessed £ £ Under £200 375,366 38,604 £200-£300-23,907,893 112,747 '300-400 v ......... 14,530,400 212,145 400-500 6,881,530 204,517 500-900 ..... 11,643,568 652,361 • 900-1000 120,300 1000-2000 7,744.511 841,884 2000-3000 2,808,214 465,598 3000-4000 1,327,668 280,030 4COO-EOOO 683.588 175,332 6000-8000 497,102 179,439 8000-lfl,000 ..... 256,698 101.096 10.000-20,000 252,636 105.987 20,000 and over .. 147,807 58,659

£ £ Under £300 . 16,158 4.165,022 39,027 £300-500 ... 15,578 5.619,611 105,202 500-1000 ... 4,343 2,931.204 188,002 1000-5000 ... 2,518 4,468,552 650,356 5000-10,000 . 118 789,866 280,500 10,000 & over 15 283,072 115,496