TAXATION LAW

New Zealand Herald, Volume LXXVI, Issue 23470, 6 October 1939, Page 9

TAXATION LAW

FURTHER. AMENDMENTS GROUPED INCOME EXEMPTION EXPLANATION BY MINISTER [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Thursday Amendments to tho Land and Tncome Tax Amendment Act which was passed this week were introduced and agreed to in the House of Representatives late to-night. The amendments give legislative effect to changes decided upon during the debate on the bill.

The Minister of Finance, the Hon. \V. Nash, said that the first amendment dealt with the pay of members of the New Zealand Forces. It provided that instead of only such forces as went overseas having their military pay exempt lrom income tax ' the exemption would be extended to the military pay of members of the special force whether or not. they left New Zealand. A second clause was eoncerned with the allowance of an exemption of £<loo from income tax in the case of a husband and wife with separate incomes, Mr. Nash said that the maximum exemption for either husband or wife would be .1200. This would overcome eases where a man earned £4OO and his wife I'loO, and where it might be thought that the exemption should bo £4OO. In fact, it would be £.' 100, comprising £2OO for the man and £l5O for the wife.

In short, the Minister said, the exemption could not exceed- the income. Jn the case be had quoted as an example the wife earned £l5O and could, therefore, got only £l5O exemption. The total income was exempt to £2OO. but not more.