Social Security Amendment

Northern Advocate, 4 July 1939, Page 3

Social Security Amendment

I i Special to “Northern Advocate ”i ! WELLINGTON, This Day. | The Prime 'Minister, Mr Savagle, l announced yesterday the intention of j the Government to introduce legislaj tion exempting a wife separated from j her husband from the payment of the I social security charge or income-tax jon maintenance money paid to her j under a deed of separation or Court J order. j Mr Savage said that under the j present law, maintenance payments I made in the terms of a deed of separ-

ation or Court order to a wife living apart from her husband were liable, in the hands of the wife, for the social security charge, 'and for income-tax also in cases where the amount exceeded the personal exemption allowable. In many cases, such maintenance money had already borne tax in the hands of the husband, for these payments were usually met by the hus-

band out of his income. The Government proposed to remedy the position at the earliest opportunity. The legislaion would not affect the liability of the husband to pay in-come-tax and social security charge on these sums where payment was made out of income, but the husband whuld, of coujrse, continue to be entitled for income-tax purposes to the statutory exemption in respect of

his dependent wife.

Where the maintenance money is paid out of a trust fund created by a settlement, so that the income has not already borne tax, the wife will remain liable for the social security charge 'and income-tax on the sums received by her. The concession does not extend to alimony paid by a man to his former wife.