PAYMENT OF INCOME TAX

Otago Witness, Issue 3495, 1 March 1921, Page 53

PAYMENT OF INCOME TAX

RELIEF PROPOSALS. The following memorandum regarding the payment of income tax has been issued by the secretary of the Association of New Zealand Chambers of Commerce to the aifilated chambers: — “In order primarily to assist importers who are possibly financially embarrassed owing to the heavy .stocks which are generally being carried, the Commissioner of Taxes is prepared, subject to prior arrangement between the taxpayer and himself, to permit the payment of income tax, which is due this month, to be made in the following manner: 1. Half the amount of the income tax payable to be paid on due date. 2. The balance can be paid by cne bill at three months or by two bills at three and six months. “To the amount of tax represented by the bills is to be added 15 per cent, penalty, the hank charges, stamps, etc., and there is to be included in the hills an amount to cover the discount of the bills at 65 per cent, and exchange on bills payable else where than at Wellington; in other words, the bills are to be of such an amount as when discounted by the commissioner will represent the amount of taxation, and the 15 per cent, penalty. The commissioner also requires that the hills shall be endorsed by the taxpayer’s bankers. On payment of the bills at due date the penalty tax will be refunded. “ This method of payment will be permitted only in those cases where the taxpayer is unable to find the full amount of income tax himself, or obtain it from his bankers, and only after arrangement has been made by the taxpayer with the commissioner. The association is given to understand that the Government must discount the bills, as it is necessary to bring the revenue into the financial year ending March 31 next, in terms of the Public Revenues Act. “This method of paying the income tax will be permitted only in the circumstanc« • mentioned above, and in view of the special conditions obtaining at this time, and is not to be considered as a precedent. It is suggested that chambers of commerce should advise such of their members as are likely to be interested.