TAX-GATHERER’S NET

Otago Daily Times, Issue 22391, 12 October 1934, Page 10

TAX-GATHERER’S NET

EVER-WIDENING CIRCLE BRITISH INCOME TAX ADDED. (SrECIAI. to Daily Times.) AUCKLAND, October 11. Income tax assessment notices are now being delivered in Auckland. The, method of assessing dividends from British companies such as the National Bank of N evr Zealand, the Union Bank of Australia, and the Bank of Australasia has come as a surprise to many taxpayers. Instead of accepting the amount received in New Zealand currency, the office of the commissioner of taxes is., adding to the dividend the amount paid in British income tax. This in some eases is paid hv the company or bank before declaring the dividend. In others, the dividend is declared and the British income tax is deducted before payment to the shareholder. In all cases, the amount of British income tax is now being added to the New Zealand income tax assessment as if it had been received by the shareholder. Thus a good deal of trouble is being taken to swell an amount of income which is not in the ordinary sense taxable. By this increase of assessment, however, the commissioner of taxes increases the rate at which the taxable income is taxed. In some cases, also, the personal exemption allowed against assessable income is reduced.