RETURNS OF INCOME

Northern Advocate, 20 May 1929, Page 8

RETURNS OF INCOME

DUE IST. JUNE. PENALTY FOR NEGLECT. Furnishing a return of income is an animal duly imposed by law on ail 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 all persons in receipt of income from salary, (wages, interest, rent, annuity or other annual payment, where such income exceeds £250 per annum. Returns are required annually from such persons notwithstanding that by reason of the special exemptions allowable by law they may not he liable for tax.

Form No. 3, which is now obtainable at all post offices, is the form to be utilised iby all individual taxpayers, partnerships, estates, and commercial, industrial, or investment companies.

The return should be completed and forwarded to the Commissioner, of Taxes, Wellington, on or before the Ist June. 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 the 31st March they should J)e furnished within two months of that date. 1

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 eases in an assesesment of considerably more tax than would otherwise be payable.

In (the absence of a return the Department has power to make an assessment of an amount on -which it is considered tax ought to be- levied. The acceptance iof -the- estimated assessment does not, however, absolve ttli.o 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 high er amount in addition to prosecution for failure to furnish the return at the prescribed time.

If the tax payable* wider 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 title return at the prescribed time. Reports of prosecution for* failure to make returns in the past should be taken as a warning’, and all persons iliable to furnish returns are therefore advised in their own interests to forward such returns on or before the Ist. Juno,