TAXING INCOME TAX

Poverty Bay Herald, Volume LXI, Issue 18528, 15 October 1934, Page 11

TAXING INCOME TAX

UNWELCOME ASSESSmm

DIVIDENDS PROM BRITAIN

lncon* tax assessment notices are now Heine delivered. The method of assessing dividends from British companies, such as the National Bank of New Zealand the UiHWt Bank of Australia and the Bank of Australasia, comes as a surprise to many taxpayers. Instead of accepting the amount received m New Zealand curacy, the office of the Commissionier of Taxes is adding the amount paid in British income tax, This, in •some cases, is paid by the company, or bank before declaring the dividend; m others, the diiSend l declared and the British Income tax deducted before payment to tho shareholder. In all cases the amount of the British 'Wm tt». w hAw being added ip the New 2ea)#n« «»• <spWifax assessment, au jf it had been fedeiVed by tho shareholder. Thus a jWod deal of trouble is being taken to I SfiU the aiwunt of WQm which is not A* dn tbo Mrdinary sense taxable. By tms inicrease of assessment, however, the Commissioner of Taxes increases the rate »t ; ’irhich the taxable inepm is taxed. Also, in some cases, the personal exAdaption allowed against assessable illcome is redacud.