TAX ON WAGES

New Zealand Herald, Volume LXX, Issue 21520, 17 June 1933, Page 14

TAX ON WAGES

FAILURE TO DEDUCT A DIRECTOR'S HONORARIUM Charges of failing to deduct the emergency unemployment charge from tho secretary's wages and from a director's honorarium wero heard in the Magistrate's Court yesterday against the Parker-Lamb Timber Company, Limited. Appearing for the defendant company, Mr. Finlay said that with respect to tho director's honorarium there was a complication in that although tho cheque had been made out, it had not actually been presented to the bank. Tho timber trade was at present in a depressed state, and although the honoraria were made out, they were frequently not cashed for several months. In any case, Mr. Finlay contended that tho secretary, in actually paying the wages, was liable for breach of tho regulation, not the company. The magistrate, Mr. F. K. Hunt, disagreed, but said he considered an adequate explanation had been made concerning the honorarium. Tho company was fined £2 and costs on tho first charge and convicted and ordered to pay costs on tho second. Appearing for Frederick Brown, dentist, who was similarly charged, Mr. Townshond explained that tho young mechanic employed by defendant had been expected to deduct tho wages tax from his own wages and put tho tax stamps in the book kept for the purpose, but had failed to do so. Defendant was fined £1 and costs.