INCOME TAX BELIEF.

New Zealand Herald, Volume LVIII, Issue 17716, 26 February 1921, Page 6

INCOME TAX BELIEF.

REDUCTION OF PENALTIES,

NO BANK ENDORSEMENT. [BY TELEGRAPH. —PRESS ASSOCIATION'.] WELLINGTON, Friday. Interviewed to-day regarding the question of deferred income tax payments, the j Prime Minister said : —" It is impossible, without very seriously interfering with the Dominion's finances, to give effect to the suggestion which has been put forward that half of the income tax should be c6llected now, that is, at the end of the financial year, and the other half during the next financial year; but we are very anxious to avoid hardship to taxpayers who may have difficulty in meeting the claims to which they are liable. I have arranged that a reduction in the penalty tax, which was provided for by last session's Land and Income Tax Amendment Act shall apply to payments of incoas tax which are now being made- That is, a person failing to pay his tax on Monday would have only 5 per cent, instead of 10 per cent, added. If he failed to pay within three months of the due date, February 7, he would have 7£ per cent, added, and if he failed tc pay within six months of due date he would have 10 per cent, added. That is, he could have jast short of six months to pay the 'ax dt a cost of 7£ per cent, of the amount of tax."

In reply to a question regarding the endorsement by a bank of bills for the deferred tax, which was one of the principal causes of complaint in connection with the deferred payment, the Prune Minister said that the endorsement was not now essential, and taxpayers affected had been so advised.

The conditions of the tax payment now to be varied, are set out on the notice to the taxpayer as follow:—Ten per cent, additional tax is chargeable on all tax not paid within 21 days of the due date. Should the tax not be paid within three months after that date, the additional percentage will be per cent. ; if not paid within six months after, 15 per cent. The 21 days from the due date, February 7, expires on Monday, the penalty payable after Monday and" up to three months from February 7 has, therefore, been reduced from 10 per cent, to 5 per cent. ; that for the period between three months and six months from the due date from 12£ per cent, to 74 per cent. ; and that for nonpayment until after, six months from the due date has expired from 15 per cent, to 10 per cent.