LEGAL INQUIRIES

New Zealand Herald, Volume LXXVII, Issue 23770, 25 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. In Doubt.—A hedge, if it is a close and sufficient fence, may be a boundary fence within the meaning of tho Fencing Act: (a) If the adjoining occupiers have agreed lo this effect, or (b) if it has been accepted by the adjoining occupiers as a boundary, or (c) if it has been declared by a magistrate to be a sufficient fence within the meaning of the Act. If it is a boundary fence, then the parties are subject to the provisions of the Act, i.e., that neither party can destroy it and both parlies must keep it in repair, which in this case would include trimming. If it is not a boundary fence, then the owner of the • land on which it is growing can do as he likes with it. The height of boundary fences causes some trouble, and in the event of dispute between neighbours is a matter which will be settled by a magistrate. The same position arises with regard to tho method of trimming, and so forth. Provisions as to notice contained tn the Fencing Act must be observed. Assessment.—Where a person has both earned and unearned income, an additional 33 1-3 per cent of the tax is payable on the unearned income only. All special exemptions are deducted first from earned income and arc not apportioned as between earned and unearned income. That is to say thai a deduct ion will be made from unearned income only if the earned income is less than the amount of the special exemptions. 313.—The principal purposes of the premises beiim business, the Fair Rents Act does not apply. Tho ordinary rule as to tenancies therefore will apply. The landlord cannot raise your rent except by agreement. What he can do. however, is to determine your tenancy by appropriate notice, unless you agree to pay an additional rent. Storekeeper.—As tho debtors are members of the forces, you will require the leave of the Court before you can enforce any judgment. Worried. —Dependants of members of the military forces arc protected by tho Debtors Emergency Regulations, 19-10. J.F.S., To Aroha.—The Social Security Act provides that a married woman shall bo entitled to receive a sickness benofit only if the commission is satisfied that her husband is unable to maintain her. Yon could applv to the Social Security Department, but it is doubtful whether you would be entitled to any benefit. You should, however, bo entitled to receive a family benefit of 'ls a week in respect of one of your children, and you should make application to tho Social Security Department for this. M.E. —Under the Social Security Act treatment in State mental hospitals is free. Takapuna.—Tho trustees are not liable for tho acts of thoir tenants. You can call on tho trustees by proper notice under tho Fencing Act to contribute toward tho cost of the fence. Briton. —Section 86 of tho Land and lncomo Tax Act provides that a person other than a company shall be deemed to bo resident in Now Zealand within the moaning of the Act it his homo is in New Zealand. Tho provision in tho Social Security Act which also proverns tho position in relation to national security is that everv person who has remained or remains in New Zealand for a continuous period of not. less than I 1.! months shall, unless and until he satisfies tho commissioner to the contrary, be deemed, for the purposes of the social security tax, to have been ordinarily resident in New Zealand. It therefore appears that you will be exempt under the Land and Incoma Tax Act from any

disabilities which attach to persons ordinarily resident in New Zealand, but you

will have to satisfy the Commissioner of Taxes in so far as social security and national security taxes are concerned.

B.lL—The Land and Income Tax Amendment Act, 193 1, reduced the exemption of farmers the total unimproved value of whose land did not exceed £7500 to those the total unimproved value of whose land was less than £3OOO. This exemption of farmers was repealed by section 11 of the 1930 Amendment Act, and therefore farmers are liable to income tax on their income for the year ending March 31, 1910. Farmers have, of course, been liable for the various unemployment and social security taxes, and now for the national security tax. The Income Tax Acts in general provided that a standard value of stock might, be. adopted. This-applies only to those farmers who were liable for income tax and, of course, excludes a very large number of farmers. The Commissioner of Taxes insists in respect to farmers who arc making a return of income for income tax purposes for the first time that they adopt the market value of their stock as at the beginning of their income year. With regard to farmers who have been returning their income and payinpr tax and who have adopted a standard value which is less than the true value, section 7 of the 1910 Amendment Act provides some relief. It applies, however, only to those cases whero substantially the whole of the farmer's stock is disposed of cither by sale or under a will or otherwise. 11l such a case the standard value at the commencement of the income year may be adjusted to bring it up to the true value provided that the same shall not exceed £"> per head for cattle and 19s per head for sheep. The excess over this amount of the proceeds from the clearing sale or other substantial disposal of the stock will ho deemed income for the year. Tho Land and Income Tax Amendment Act, 1939, section 14, provides that tho assessable income of any person shall include all profits or gains derived from the use or occupation of any land. Presumably the increased value of a permanent dairy herd which is being built up over a period of years would be deemed income. Presumably also if the dairy farmer had land totalling in unimproved value £3OOO or more and had been making returns and paying tax on his income, and had adopted a standard value of £5 or less and held a clearing sale of his dairy herd, (lie cost over £5 per head would be deemed lo be income and taxable accordingly. Also those farmers who have not been liablo for income tax mav meet, with difficulties with regard to social and national security taxes if they sell out. Some such farmers have adopted (heir own values in making their returns for the social security lax, and unless they are allowed to readjust this in those cases where they disposo of (heir dairy herd, they may be paying tax on a very considerably greater sum than they should Say. The Leader of the Opposition, Mr. [amilton, has made a statement in connection with this matfer, and suggests that in such cases, which may. of course, extend beyond dairy farmers, the farmer should bo permitted to adjust his values as at the date when ho first established them. This possibly might result in tho farmer having to pay additional tax over a number of years, but it certainly seems a fairer basis on which to work. All these sections of the Acts and Amending Acts arc lengthy and complicated, and it is impossible to give a really simple explanation of them. Your best course is to get in touch with some expert in the matter of income tax and get him to apply (he law to your particular facts, as it will be necessary to work out your position from several different angles and at varying rates of tax. Assessment.—You must pay national security tax, social security tax and income tax on tho value of the premises you receive rent free as part of your emolument. This being so, tho income tax assessed ajrainst you appears to bo correct. Hard Hit. —(1) If you wish to secure yourself you should not only receive a receipt from tho mortgagee for any moneys thai you pay off the mortgago, but also an acknowledgment from your husband that yon are entitled to bo repaid this, and a security over the property securing repayment. 2) You are not 'entitled as of right to ascertain what is in your husband's will until after his death.