INCOME TAX LAW

Nelson Evening Mail, Volume LXXIII, 5 April 1940, Page 7

INCOME TAX LAW

RECENT AMENDMENTS CHANGES IN THE FORMS HUSBAND AND WIFE'S POSITION ! Alterations in taxation law made last' September are apparent in the new forms to be filled in for income tax purposes now available at money-order j post offices. However, no hint is given | in these of further new departures in j taxation such as might be expected ; from the knowledge that the Minister l of Finance intends to levy still higher amounts from taxpayers. In filling in the new forms the tax- j payer will start off with the usual personal particulars, and then be required , ito give information relating to joint \ incomes under the recent amendment ! to the legislation. By this amendment authority was given for the aggrega- | lion of incomes of husband and wife | for taxation purposes. AGGREGATION OF INCOMES - Assessment is now to be made on j the incomes of a husband and wife i living together at the rate of tax pre_ scribed for the combined figure, except where the income of one is less than £SO. The taxpayers must state whether the income was less than £SO or more I than £2OO. Where separate assessments

are made the personal exemption of £250 allowable to them both is divided between them, in accordance with the I respective amounts of their assessable | Having given the necessary informa- j tion on this aspect of the new taxation, the next task provided in the form is to supply details of any life insurance premiums, superannuation and National Fund contributions. The taxpayer is reminded in the form of the new limits that may now be . claimed as special exemption. The third section in the form relates to particulars of dependent chil ' dren in respect of which changes, pro- ! viding for the apportionment of exemp- i t.ions between husband and wife as the commissioner thinks fit. were made vj under the amending legislation. There . are also other changes relating to the f housekeeper exemption, which will be | i noted by those affected by this section | of the return. I I COMMERCIAL VEHICLES \ ! New reduced rates for depreciation j on commercial vehicles are quoted and ; also those for motor velficles used in ; production of income. The rate of de- § preeiation allowable on a motor-car is i 10 per cent, on cost; on lorries and j trucks, 10 per cent, or 15 per cent if j subject, to heavy traffic licence fees; f

on motor_buses for 10 or more pas- \ sengers, 20 per cent; and on taxis about I 10 per cent, on cost, or, if working j \ 24 hours a day, 12* per cent. The return of income for the year I; ended 31st March must be sent to the j: Commissioner on or before Ist June. , i Social security charge declaration j § forms are not attached to the income j s tax return forms, as was the case last i year. The declaration relates to all = income other than salary or wages, and ! must be completed by all persons, other than those receiving total disability war pensions, over the age of 16 years. The forms are supplied separately by post offices.