EMPLOYMENT TAX

New Zealand Herald, Volume LXXIII, Issue 22403, 27 April 1936, Page 13

EMPLOYMENT TAX

AMENDING CLAUSES IN BILL EXEMPTIONS FROM PAYMENT [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON. Saturday Amendments to the Employment Promotion Bill were introduced in the House of Representatives on Friday by Governor-General's Message. Ihey embody alterations to two clauses regarding exemptions from payment of employment tax. Clause 19 of the bill provides that aged or disabled persons whose incomes do not exceed £lO4 a year shall be exempt from the tax. but this has been extended under the amendment so that persons whose incomes do not exceed £lO7 lis 8d will have to pay only the difference between the actual income and the exempted amount of £lO4. Explaining the amendment, the Minister of Employment, the Hon. H. T. Armstrong, said that as the clause stood originally an elderly or disabled person receiving £lO5 a year would pay £3 10s in tax, thus reducing his net income to a figure £2 10s below the exempted limit. The new sub-clause would remove that anomaly and also any hardship that might be suffered by an elderly or disabled person whose income, through being a few pounds in excess of £lO4. was subject to a tax disproportionate to the amount of the fxcess.

The other amendment deals with the provision in the bill that persons giving vip residence in New Zealand, and the astates of deceased persons, shall not be liable for instalments of the employment tax on income other than salaries and wages falling due after the date of departure or of death. It is proposed to remove those exemptions. Mr. Armstrong said that, with the handing over to the commissioner of taxes of control of the assessment and collection of employment tax, it would be inconsistent if that official was empowered to grant exemptions which would not be allowed in respect of income tax. The amendment would place the classes of income referred to in the clause under the same liability for employment tax as they were for income tax. Under the clause as amended, tax would be payable in all cases until the date of departure or death.