New Zealand Farmer's’ Union

Otago Witness, Issue 4074, 12 April 1932, Page 16

New Zealand Farmer's’ Union

Dominion President ...Mr W. J Polson, MJ’.. Forded Dominion SecretaryLieut.-Colonel J. Pow P.O. Box 715. Wellington President Otago Provincial CouncilMr C. R. Sheat. Milton Secretary Otago Provincial Council... .Mr A. C. Cameron. P.O. Box 043, Dunedin President North Otago Executivev.Mr R. Walker, Ilillgrove Secretary North Otago ExecutiveMr A. W, Woodward, P.O. Box 90,'Oamaru President Southland Provincial CouncilMr E. K. Sim. Pukemaori Sec. Southland Prov. CouncilMr A. L. Adamson, P.O. Box 219. Invercargill

TAXATION CONCERNING THE FARMER.

account and balance sheet, if made out specially for unemployment purposes) posted to the Commissioner of Taxes, I Wellington, with the amount due.' .Form U 855 (a white one) will then be completed by .striking out the declarations (1) and (3) and handing it to the local post office. The first instalment of onethird of the income derived for the year ending March 31. 1932, must be paid before June 1, 1932, otherwise a 10 per cent, penalty will be added. Besides this, there is the liability of a fine of £5. The remittance must accompany the forms, and it can be noted that the number of the unemployment coupon-book of the taxpayer must be written on each declaration. \\ ages Paid.—As already indicated, the farmer is obliged to deduct from each employee's wage when it is paid three pence in the £1 (or whatever the. rate is increased to) and affix unemployment stamps to the receipt. Many farmers do not keep a wages book, but it is wise to ! make use of one for unemployment tax I purposes. Small books very suitable can i be bought from any stationer at little cost, and in some of them useful instructions are given. The employee has to cancel the stamps. Wages paid to part-time or casual employees, whether on time or piece-work, are’ liable to the tax and also .payments to contractors working as individuals. In cases where farm employees are paid a wage and keep ” the value of the “ keep,” assessed as under, must be added to the wage, ami the total sum deemed to be the weeklv income. Single man or married man not accompanied o.v wife and/or children—

By

D. M. Maloch, A.R.A.N.Z.

IV.—UNEMPLOYMENT TAX

This tax concerns the farmer in three ways: — (a) He must pay the general unemployment levy of £1 a year. (b) He must pay the emergency unemployment charge of 3d (or increased rate when it becomes law) in the £ on his income. , , , • + (c) He is responsible for seeing that everyone who works for him has P« u the levy of £l, and also that the' unemployment charge on wages is deducted when he pays his employees. General Levy—All male persons of the age of 20 years or upwards are liab e loi an annual charge of 20s payable in Quarterly instalments on the first day of February, May, August, and November. A month is granted from these dates before a late penalty of 6fi a month accrues. Besides this late payment penalty, a defaulter is liable to a fine ot £o. £ he desires, the charge can be paid in one sum at the beginning of the year, and th ; s is the wisest proceedure for most farmers to follow, so that there need be no further worry about forgetting to pay when an instalment is due -.., E \ C j r>on this time is familiar with the htGe coupon-booklet, “Particulars of Reglst a tion,” which is issued by the department,

and which contains information winch need not be repeated here. Keep the booklet in a safe place, because i it is lost, it will cost Is to replace it and cause needless trouble Under the Act any person who employs anyone liable for an instalment of the levy which is overdue seven days is himself 'able to a tine of £2O. Business funis make a point of inspecting the registration booklets of all the staff after the last day an m&talment is due. In like manner a fannei Should see to it that all his employees have paid, and so protect himselt against possible action. The following which my concern the farmer are among those exempted from liability Pensioners, and all Natives who do not elect to register, persons m receipt of nar nensiono 'for total disablement, and persons who may be in hospita on the due date of the levy and for at least one mouth thereafter. In addition, tlm Un employment Board may exempt any snecified instalments of any person from whom payment of the levy would through poverty or sickness of any member of his family constitute a serious h . ards ’?,£' any farmer wishes to appeal under this hardship clause, he should write direct to the Commissioner of Unemployment. " ' lington, who will on request supply the necessary forms to fill m and the

Charge.—Every farmer without 8 exception is liable, to pay au unemployment charge on his rnfp nt present is 3d in the £, but icce indications point towards R tn lOd or Is in the £. AH iarniin 9 i come, irrespective of the amount oi the unimproved value, becomes liable, and the basis of arriving at the income is ex-iedy the same as for income tax, nlncli nas been already explained. there snecial exemptions, however, for hung expenses, children, and lite insurance premiums, etc. Depreciation on buildFn's can be claimed, however, it treated Um same way as .indicated previous y, and -also depreciation on plant, nnple ments, machinery, and motors it “““'J® are presented by double eutij. .It will understood that even if there ’f * d ° u ”| in any farmers mind as to whether not it is worth while claiming depreciation on his implements, etc-, tor ' tax, there is a certain direct saving to be made in unemployment tax'. Filling in the Return.—Ask foi two copies each of the three forms, ÜBOB, U 855, and U855.V. Always keep one copy of the return for reference later on, and also to assist in completing the one toi; next year. Having dissected all receipts and payments and prepared the accounts for income fax purposes, no more work is involved in completing the unemployment relief tax return, which is practically identical with the income return already furnished. To the farmer whose unimproved value is, under, £3OOO and so exempt from furnishing an income return, ' it is possible that it will pay him to prepare his accounts by double entry, so that he can claim depreciation allowances. In this case he should follow the instructions already given on the subject oi double entry, which, summarised, are: — (a) Preparing a balance sheet at the beginning of the year. (b) Drawing up receipts and payments for the year. . (c) Collecting certain balance information necesssary. (d) Preparing profit and loss accounts and balance sheet at the end of the year. Form ÜBSB amounts to a profit and loss account, and needs no further explaining except that depreciation will be written at the foot of the return among “other items.” Rations bought for employees is identical to “ stores,” which has also been explained. It is presumed that all farmers prefer to furnish income to Wellington, and not to the local post office. In such cases form ÜBssa should be completed, part (a) fil'ed in, and with form ÜBSS attached (as well as profit and. Lass

Wages of women and girls in private domestic service are exempt from the charge. Where a farmer has taken advantage of the relief work offered by the No. 4a scheme, and the 4r. scheme, and iemploying relief workers, the wages paid to them are subject to the unemployment tax m the same way as ordinary wages. Under the 4a scheme, which applies to single men, keep to the value of 15s a week must be added to any wages paid by the farmer, and likewise with any relief workers who are under the 4b scheme and are “ kept.” It can be noted also that relief workers are not exempt trqm the £1 a year levy, and if it is not paid both the farmer and the worker are liable to the fine already mentioned. It any person pays wages without detle unemployment tax, he is liable to a fine of £2O and to pay treble the amount which should have been deducted. It is a good idea to buy- sufficient stamps to last a few months so that there is no need to procure them every time wages are paid. It will be gathered from the above that wages for shearing, innstering. and other casual or contract work are subject to the tax. but in the cases like threshing and chaffeutting it will depend on the arrangement with’ the millowner whether or not he is an independent contractor and who pays the men. If the mill-owner is paid a contract price for the whole work, and himself pays his men. the unemployment levy would not, of course, come within the responsibility of the farmer.

, General.—lt is not difficult to see that from the point of view of economy- it wou.d pay most farmers to give serious thought to any means whereby they can themselves prepare or have prepared for them the results of the year's work, with expert accountancy- assistance and advice as regards taxation ready whenever re quired. There are numerous other advantages which accrue, as. for instance, the benefit of having one's affairs recorded clearly so that needless legal and estate expenses may- not accrue at death. It is remarkable that intricate wills are sometimes made giving instructions for the handling of an estate about which the person making the will has vague and indefinite ideas, instead of actual figures. lhe general theory- of taxation has been explained, and care taken to avoid income from sources other than from farming. There are some farmers who, luckily, or perhaps rather by foresight, are in the happy nosition of having an income from investments. Special taxes accrue in such cases, however, which complicate the making out of returns and the assessment of the tax. Any inquiry concerning this will be dealt with. The method of keeping books has not been attempted, because the only way of teaching this practical side of the subject successfully- would be by practical demonstration.

(Concluded.)

UNEMPLOYMENT SCHEMES. SETTLING THE UNEMPLOYED ON THE LAND. Mr A. C. Cameron advises that the recent scheme outlined by Mr Coates wherein the Government proposes to spend up to £1,000,000 building public works houses on small rural allotments in an endeavour to place unemployed families in the country, is meeting with a very- mixed reception from prominent farmers in Otago. Many frankly admit there are areas of good land adjacent to such places as Milton or Mosgiel where

selected families could and would, no doubt, make good on 10 or 20 acres. In such districts the young men and girls could get employment in woollen mills and other industries, and thus augment the family- income.

PROPOSED POULTRY REGISTRATION BILL.

Everything depends upon the type of family selected and upon the situation of the allotment, but judging by the activities of the various unemployment boards in the past, very little confidence is felt in their ability to select the right types. It is felt that unsuitable land Inay be chosen, also that the Government's offer will be accepted by many who will later get “ fed up ’’ and driit back to the towns. Some farmers welcome the scheme, be- | cause, as they humourously put it, they require shepherds’ huts and farm buildings, and when the public works huts are abandoned they anticipate being able to purchase them cheaply. One prominent farmer expressed it as his opinion that concentration is necessary upon production for overseas markets, as distinct from production for the local market. In his opinion the type of settlements proposed by Mr Coates would mean increased production for the local market only, and be points out that there is a limit to the capacity of New Zealand to absorb the surplus products of these small patches, after the family wants are satisfied. Many farmers do not think the proposed areas are large enough. Generally speaking, all admit that there is a future for mixed farming on a small scale on good land, but careful selection of settlers and farms is absolutely necessary if the scheme is to prove successful.

Proposals have been unanimously approved of by poultry organisations throughout the Dominion, and also by the annual conference of the New Zealand Poultry Association held in March, for the efficient organisation and development of the poultry industry. These organisations have applied to the Government for a Registration and Development Act under which the industry will have powers somewhat on the lines of the Orchardists’ Bill. The ex-Minister of Agriculture, Mr A. J. Murdoch, granted the sum of £245 to assist in the necessary work of organisation and with propaganda work, and lhe present Minister, Mr Macmillan, has now promised to proceed with lhe preparation of a Bill. The Bill will provide for a census of poultry to be furnished and a registration fee to be paid by a]] poultry keepers other than:—-

TRADE WITH GREAT BRITAIN.

POLICY OF THE NEW ZEALAND FARMERS’ UNION. In view of the approaching Imperial Conference at Ottawa, a statement of the policy of the Farmers’ Union regarding trade with Great Britain will be of general interest. During the past four years the following phases of trade with Great Britain

Mr Fred. W. Bayly, of Merino Downs, near Gore, writes to us as follows:— “ Dear Sir,—Enclosed you will find a snapshot of a halfbred ewe with lamb at foot. What is the natural life of a ewe? This ewe was lambed in 1917, had her first lamb in 1919, and has reared a lamb every year since, the lamb in the photograph being her twelfth lamb, Last shearing (first week in February) she shore a skirted fleece of (Hlb. She

have come before the annual conferences: 1. Empire free trade is in the best interests of the Empire as a whole, and is an essential step towards the preservation of the unity of the Empire. 2. As Great Britain, our principal customer. has no protective tariffs against New Zealand products, a gradual reduction should be made in the protective duties imposed against the products of Great Britain coming to New Zealand. In 1930 a remit embodying the principle of increased preferential duties being imposed to encourage trade within the Empire was defeated. At a meeting of the Advisory Committee held on March 15. 1932, it was decided to recommend to the Government that the delegates to the Ottawa Conference should support the quota system of allocating the imports of primary produce into Great Britain as being the only plan to give relief to British and Dominion fanners. If, however, tariffs had to be imposed, then they should be imposed only in conjunction with the quota system. The advantages which are claimed tor the quota system are: —

1. Home producers would bo assured of a market, and they would obtain better prices for their products.

2. The area under cultivation would lie increased, thus checking the decline in arable cultivation.

3. Imports from foreign countries would be reduced, with a corresponding increase from the Dominions,

4. Preferential tariffs would not restrict foreign imports to the same extent as the quota system. Even with a heavy preferential tariff in operation, most foreign countries could put their produce on the British markets as cheaply as the Dominions owing to a much lower cost of production. One argument against the adoption of inter-Empire tariffs is that the erection of tariff barriers might be interpreted as British Imperial aggressiveness, and thus arouse the hostility of foreign nations. Advocates of Empire preference have never suggested so suicidal a policy as the inhibition of foreign products, even assuming that it were possible to do so, which it is not. It would be unwise for Great Britain, as for the Dominions, to erect a tariff barrier too high, as that might so curtail imports as to influence adversely the purchase of goods from Ug by the foreign countries affected.

(1) Owners of less than 12 head of poultry. (2) Old age pensioners. (3) Persons registered as unemployed at the time when registration is due or who have been so unemployed at any time within three months of such date. (4) Such other persons as may be exempted by regulation under the Act. I Particular attention is drawn to the last-mentioned exemption, as this would empower the Minister of Agriculture to grant exemption in all cases which would otherwise result in undue hardship being imposed on any individual or section of the community.)

forward a vigorous protest, and to seek the co-operation of other branches in this matter.

After the conclusion of the ordinary meeting the annual meeting was held. The secretary presented the balance sheet, which showed a small credit balance ot 12s lid cash in hand. A certain amount of capitation was due, and would probably soon come to hand. After discussion, the balance sheet was adopted. ’lhe election of officers for the ensuing year resulted as follows:—Messrs T. L. Spence, president (re-elected); J. Gall, senior vice-president: A. Jones, junior vice-president; A. T. Ward, secretary (re< elected); G. S. Wilson, auditor (reelected). A social half-hour was then

spent over a cup of tea. and a supper provided by the W.D.F.U. in its usual generous style.

Money derived from registration fees, less cost of collection and administration, to be expended in furthering the interests of the poultry industry. A provisional committee to be appointed by the Minister as soon as convenient after the Act comes into operation. Such committee to consist of four representatives of the poultry industry nominated by the New Zealand Poultry Association and two Government nominees and to hold office for one year unless such term should be further extended by the Minister. Thereafter a committee based on similar re-

is bred, from a merino ewe and Romney ram. and is still quite fresh and lively.” The life of a sheep will depend upon its constitution, and the country on which it is grazed. One of the chief factors influencing a sheep’s life is the conditions of its teeth, which in turn depend upon the character of the country and its herbage. Under favourable conditions the average life of a sheep may be considered to be 10 years.

presentation to be appointed for a term of two years, and this procedure repeated. Or, alternately, when the New Zealand Poultry Association has been efficiently organised under the operation of the Act, that the funds be passed over to this association for administration. In this connection it is proposed that every registered poultry keeper having paid the required fee shall be ipso facto a member of the New Zealand Poultry Association for the currency of the period for which such fee is paid.

There are many undoubted advantages to be obtained by the enactment of the proposed legislation, not the least being the maintenance of a minimum local price of Is per dozen for eggs. About 7,000.000 dozen eggs are marketed annually in the Dominion during the four Hush months. If through the scheme nowadvocated the price on the local market could be maintained at even Id per dozen higher than would otherwise be the case, the additional return to poultry keepers would be in the vicinity of £30,000. Therefore if the registration fee must be called a tax, it is certainly a “ betterment tax,” returning a handsome profit on the outlay.

The matter of dealing with the seasonal glut of eggs which is the bugbear of the industry need not be stressed. A solution of the problem would give a new lease of life to the industry. BRANCH ACTIVITIES. GLENOMARU. The usual monthly meeting was held on Saturday evening, April 2. There was a fair attendance of members, and the president (Mr T. L. Spe'nee) occupied the chair. The minutes of the previous meeting were confirmed, and the correspondence' read, duly considered and received.

Messrs T. L. Spence and A. T. Ward, supported by Messrs G. S. Wilson and W. Blackie, were appointed to represent this branch at a meeting to be held in Owaka next month to elect one member to represent the Catlins group on the Provincial Executive. It was agreed that the proceeds of the lecture on astronomy (kindly given by Mr M. Geddes) be divided equally between the hall committee and this branch N.Z.F.U.

The high charge for railage on wool was discussed, and it was resolved to

rood only . . 10s per week. Lodging onlj' 5s per week. Food and lodging .. . . 15s per week. Married man with wife and/or children— Food only Lodging only . . . . JOs per week. Food and lodging . . 25s per week.