LEGAL INQUIRIES

New Zealand Herald, Volume LXXVII, Issue 23758, 11 September 1940, Page 6

LEGAL INQUIRIES

MANY PROBLEMS SOLVED This column appears each Wednesday. Care will be taken to ensure that the legal guidance is sound and accurate and as complete as possible on the facts supplied, but no responsibility is undertaken for the advice or information. Send questions to "Advocatus," care of Editor, New Zealand Herald, Auckland, and enclose, name and address as guarantee of good faith. Postal box numbers are not accepted as bona fide addresses. Initials or a pseudonym must also be given for purposes of reference in this column. P.J.C.—Where an employee is provided with n free house he must pay tax on houso allowance as well as on his wages. Non-Security.—Under the regulations mado under the Post and- Telegraph Act, the department can insist on any person providing a box for the receipt of mail at such person's road boundary, irrespective of tho distance that the house is from the boundary. You are entitled to free hospital benefits. You cannot deduct anything from your social security tax payments. Fair. —There is no award in force governing private domestics, and therefore their, hours of work, holidays, wages, etc., are entirely a matter of agreement between the parties. A.L.W.—Persons engaged under Now Zealand articles on an inter-colonial trading ship are, for the purpose of the Social Security Act in relation to tax, deemed to bo ordinarily resident in New Zealand, unless in the case of any such person who is not in fact ordinarily resident in Now Zealand ho satisfies the commissioner that he is liable in the country in which he is ordinarily resident to a special tax or charge levied to provido funds in relief of unemployment or for tho provision of social services. This

brings to light a somewhat curious position. Tho general exemption of overseas incomo where the taxpayer also paid a similar tax was repealed by the Social Security Amendment Act, 1939, hut the particular section dealing with persons employed on ships does not appear to have been repealed in this respect. L.E.M. —Estate and succession duties are not pavable on gifts mado three years prior to the deceased person's death. This does not apply io gift duty. Gift duty is payablo when the gift is made and can be recovered at any time thereafter. Contract. —Contracts made under tho Government Scheme -IB aro not subject to the

5 per cent increase. P. 8.1. —Soldiers pay both the national security tax and the social security tax on their income, other than salary or wages or military pay, derived from any sourco for the period commencing: April 3, 1039, and onward, except that for the income year ending March 31, 1910, national security tax is assessed at what is equivalent to threequarters of the rate. As far as their military pay is concerned, they pay neither social security tax, national security tax nor income tax on it. The pay is assessed for both national security and social security tax, but the position is met by some internal adjustment made by tho Government, and the soldier receives the full amount of his agreed-on pay. The amount of liis military pay is not taken intc consideration with regard to the fixing of the rate of income tax on income othor than military pay. If tho income of a soldier other than his military pay. after deducting the usual allowances and exemptions, does not excoed £2OO, he will not bo liable for income tax on such other income, even although Iris military pay may bring his total income ~ovor £2OO. The registration feo of Os por quarter is not payable by members of the Expeditionary Force, but is payable by territorials. Volunteer —(a) See answer to "P. 8.1.". (b) In proper cases the Post and Tolegraph department will make a refund of the unexpired portion of a radio licence feo paid in advance if the uso of the radio set is being discontinued. Application for a refund should be made promptly as a refund is not granted in respect of any period prior to the application. You should address vour application to the Radio Inspector. Auckland, stating briefly the circumstances and what is to be done with the set. You should forward with tho application your copy of the licence.

Grateful.—The total death and succession duties which would be payable on your estate would amount to about £IOO. Gifts made within three years are deemed to form part of the estate and are chargeable with duty accordingly. Gifts exceeding XoOO in total made by one person in any one year are chargeable with gift duty. Widow. —See answer to "Grateful." The estate and succession duties in this case would amount to £ls. Gift duty would be at the rate of 5 per cent. The total cost of making a gift to your daughter, including gift duty, conveyancing fee and conveyance duty, would work out at something like £OS. Nemo.—l. The ace benefit commences on the first day of the month in which application for the benefit is received by the commission or on the date on which the applicant becomes qualified to be granted the benefit (whichever is the later). '2. If they have any income whatsoever other than the benefit they receive under (he Social Security Act all pensioners must pay the registration levy and social and national security tax on such other income. Anxious.—Where the parents of an illegitimate child inter-marry the child automatically becomes legitimate and it is the duty of tho parents to give the proper notice to the registrar of births accordingly. The position is not altered even if it was impossible for the narents to marry at the time of the child s birth, the law in this respect having been modified. If, however, the parents are unable to marry the best course to follow is to have the child adopted. Bit Puzzled.—l. If you sold your farm it would be necessary for you to disclose the fact to the Social Security Department and you would also have to indicate in what way tho money was disposed of. It would appear that if you receive £2OOO for tho. property this would disentitle vou to your age benefit. It is doubtful i* vour proposal could be given effect to without disentitling you to your benefit. 2. Your son should advise the Pensions Department of any gift received by him. Where a married man with no children under 36 dependent on him is in receipt of a war disability pension and an economic pension n!of I? income (including the pensions) per week are a^owec * ls i® 9 A.8.C.—(1) No child under the age or 15 .Years shall be employed for hire or reward as an agricultural worker on any dairv farm. (*.) If a soldier has been living with a woman, although she is not his wife, for n period of 12 months prior to his enlistment she will be treated by the Army Department as his wife and will receive I wifos allowance. Ignorant.—You must pay both national and social security tax on any income you have other than the benefit you receive under the Social Security Act. I.J.M.—Your father will bo liable for the levy. The fact that the wife of a person over (jo years of age, and thereby, irrespective of income or property, entitled to the superannuation benefit, is in receipt of an age benefit does not disentitle the husband to the superannuation benefit. The wife's ago benefit may, however, .be affected if the amount of the superannuation benefit brings the joint income of the couple, including all benefits over £2OS per annum. Any excess over that figure would be deducted from tho wife's benefit. I.R.V.—Generally speaking, it should not be necessary for a shareholder to make any claim against a company in liquidation in order to participate in a distribution to shareholders. The liquidator's duty is to distribute surplus assets to shareholders appearing in tho company's register of members. If you have any doubts about tho matter, you should ascertain from the liquidator that your namo appears correctly in tho register of members. Aussie.——You will not bo taxed on your capital- Your income from Australia will be liablo for social security and national security tax, but will not be liable 'for income tax here if it has actually borne incomo tax in Australia. You will requiro to got tho permission of the Reserve Bank to tako any money to Australia. Manure.—Tho Share - milkings Agreement Order, 1930, provides: "Cost of manure for maintenance purposes, including cartage, shall bo borne by the farm owner. If parties desiro additional manure, the extra cost shall be borne by them in tho same proportion as milk and cream cheques are distributed. Share-milker to apply same at owner's discretion." Unless this has been covered by the increased payments made to the share-milker agreed on, the share-milker will be entitled to claim the cost of the manure.