EMERGENCY TAX

Poverty Bay Herald, Volume LV, Issue 17609, 27 October 1931, Page 5

EMERGENCY TAX

THE CHARGE ON INCOME Tlie emergency unemployment charge on income other than salary or* wages—-tho . first instalment of which will become due on November 1, is at the same rate sis the wages tax —namely, Id in each 6s Sd, or fraction thereof, and is based on twothirds of the income for the year ended March 3.1, 1931, and on onethird of tho income for the year ernlin .March 31, 1932.

Every person who ,is not wholly exempt from liability for the general unemployment levy, and every woman whoso income for -the year ended March 31, 1931, or March 3.1, 1932, is not less than £250 is liable for the charge. It is necessary to point out that, men over the ago of 65 wlt.o have obtained cxeinption from payment. of the levy under.! cortaim i conditions are not exempt from the Unemployment Act from payment of the charge on income.

•'flan charge is not payable on any amoUnt from which the wages tax has been deducted, nor .oh any class of income which has been decblrod by the Unemployment Board to be subject to the wages tax. .Practically the.only items of income which are exempt from the emergency charge are war pensions, compensation under the Workers’ Compensation Act, income derived from beyond New Zealand upon which income tax has been paid in any other British Dominion, and all income derived in New Zealand by people who .are not ordinarily resident in the Dominion or are- otherwise exempt from the unemployment levy. “income” nioans net income. A person deriving income from rents is entitled to deduct from the gross amount received, the cost of earning rents, such as interest, rates and repairs, etc. All cash receipts are not subject to the charge. For • instance; gifts, legacies, art union prizes, and capital receipts do not represent, income; but totulisator receipts and racing stakes must be included in the income of the recipients.