INCOME TAX LAW

New Zealand Herald, Volume LXXVII, Issue 23620, 2 April 1940, Page 8

INCOME TAX LAW

-RECENT AMENDMENTS CHANGES IN THE FORMS HUSBAND AND WIFE'S POSITION Alterations in taxation law mado last September are apparent in the new forms to be filled in for income tax purposes now available at money-order post odices. However, no hint is given in these of further new departures in taxation such as might bo expected from the knowledge that the Minister of Finance intends to levy still higher amounts from taxpayers. In filling in the new forms the taxpayer Avill start off with the usual personal particulars, and then be required to give information relating to joint incomes under the recent amendment to the legislation. By this amendment authority was given for the aggregation of incomes of husband and wife for taxation purposes. Aggregation of Incomes Assessment is now to bo made on the incorftes of a husband and wife living togethor at the rate of tax prescribed for the combined figure, except where the income of ono is less than £SO. The taxpayers must state whether the income was less than £SO or more than £2OO. Where separate assessments are made the personal exemption of £250 allowable to them botli is divided between them, in accordance with the respective amounts of their assessable income. Having given the necessary information on this aspect of the new taxation, the next task provided in the form is to supply details of any life 'insurance premiums, superannuation and National Fund contributions. The taxpayer is reminded in the form of the new limits that may now be claimed as special exemption. The third section in the form relates to particulars of dependent children in respect of which changes, providing for the apportionment of exemptions between husband and wife as the commissioner thinks fit, were made under the amending legislation. There are also other changes relating to the housekeeper exemption, which will be noted by those affected by this section of the return. Commercial Vehicles. New reduced rates for depreciation on commercial buildings are quoted and also those for motor vehicles used in production of income. The rate of depreciation allowable on a motor-car is 10 per cent on cost; on lorries and trucks, 10 per cent, or 15 per cent if subject to heavy traffic licence fees; on motor-buses for 10 or more passengers, 20 per cent; and on taxis about 10 per cent on cost, or, if working 24 hours a day, 12J per cent. The return of income for the year ended March 31 must be sent to the commissioner on or before June 1. Social security charge declaration forms are not attached to the income tax return forms, as was the case last year. This declaration relates to all income other than salary or wages, and must'be completed by all persons, other than those receiving total disability war pensions, over the age of 16 years. The forms are supplied separately by .post offices.