WAGE TAX PAYMENTS

New Zealand Herald, Volume LXXI, Issue 21829, 18 June 1934, Page 10

WAGE TAX PAYMENTS

f - FARMING AND SALARY COMMISSIONER'S RULING "A loss suffered in respect of one business in one year may bo set out against profit derived in the same year from all sources, except salaries and wages," was the ruling received by the Auckland provincial executive of the New Zealand Farmers' Union from the Commissioner of Unemployment, Mr. G. C. Godfrey, who had been asked to explain tho position with regard to the payment of unemployment taxation by persons who are farming and have other incomes. % The commissioner was asked whether the loss on the farm could be offset against other income for taxation purposes. For instance, what would be paid by a man. who earned £IOO in salary and lost £l5O in farming. In explanation of his ruling tho commissioner said:—"The emergency unemployment charge on salary or wages is imposed by section 12 (1) of tho Unemployment Amendment Act, 1931, by which a definite responsibility is placed on employers to deduct the tax from all salaries or wages paid. The emergency unemployment chargo on income other than salary or wages is, however, imposed by section 13 of the Act, and as cadi section refers to a different class of income, it will be seen that a loss on 'other income' cannot set off against salary or wages for the purpose of reducing the chargo payable on such salary or wages. "In-the case quoted, the £IOO earned would be subject to deduction of the emergency unemployment charge at the time of payment, and it is immaterial that the wage-earner suffered a loss in respect to his fanning operations."