SOCIAL SECURITY

Poverty Bay Herald, Volume LXVI, Issue 19886, 13 March 1939, Page 4

SOCIAL SECURITY

THE NEW TAXATION LARGE BUDGET OF FORMS NET NOW SPREAD WIDER TASK FOR EVERYONE What may be regarded as the reverse side of the picture presented by the Government's pre-election booklet on social security, which dealt almost exclusively with the proposed benefits, has now appeared in the formidable set of taxation forms which practically all persons over the age of 16 will have to obtain, and deal with before the end of May. The forms and. directions, which relate to both social security and income taxation, cover 12 foolscap pages. While they are of most concern to income tax payers and persons liable for social security tax on "income other than salary or wages," all other taxpayers are involved to the extent of having to fill in at least two of the forms. Registration Necessary As a preliminary, every person over 16 not. already registered under the Employment Promotion Act is- required to register \inder the Social Security Act at a post office between March 31 and May 31, and to procure a coupon book on payment of the May. instalment of the registration levy. He or she must then procure a set of tax forms and fill in the declaration of income other than salary or wages for the year ended March 31, 1939. If there has been no such income, a "nil" declaration must be made. The second form to he filled in by everybody is the declaration of industrial and occupational status. That the net of social security taxation is being thrown much wider than that of employment taxation is clear from the requirement that returns of income other than salary or wages shall he supplied by all persons of both sexes over 16 and ordinarily resident in New Zealand, including natives, except those receiving total disability war pensions. Housewives and Domestics

Broadly speaking, the principal new classes of people who are being brought under the taxation arc those between the ages of 16 and 20, women in. private domestic service, and women in. receipt of £SO or less of income other than wages. All women will in future foe liable for a registration levy of 5s a year, whereas they have been exempt from, the employment levy of £1 a year.

Natives' are to be on exactly the same footing as Europeans. Hitherto they have been exempt from the levy unless they apply to become contributors, but have been liable for the wages tax. Some changes have been made in regard to civil pensioners and aged persons.

Classes of people exempt from the registration levy include inmates of institutions for the aged, needy and infirm, public hospitals, mental hospitals and prisons, students and registered unemployed.

One effect of the new taxation will be to make housewives responsible for seeing that their female domestics- pay the levy regularly and give wage receipts bearing tax stamps at the rate of Id for every Is Bd. Overseas Income

The declaration' of income other than salary or wages is the same as formerly, "except that provision is made for the deduction of income which is derived; from elsewhere in the British. Dominions and which is chargeable at the source with a special (tax for unemployment or social services. The Commissioner of Taxes must toe satisfied that these conditions are fulfilled before the exemption can be granted. The directions attached to the form do not assist the taxpayer to find out whether the exemption of particular overseas income can be claimed. Many complications are involved, particularly in regard to dividends from companies operating in Australia. In May, 1938, the Land' and Income Tax Department issued 1 a circular listing a large number of such companies in two categories for the guidance of taxpayers. It is hoped that the deDartment will bring out a.revised and up-to-date list before this year's tax returns are required. ' Payments to Share-milkers Among other new forms is one giving details of land used or occupied for farming purposes in cases where the unimproved value of the land farmed is under £3OOO and' income tax is not payable. Farmers are also required to make a separate return of amounts paid to share-milkers during the year 1938-39. A form to be filled in* by all persons who pay interest or rent of any nature is another innovation. This shows amounts for the year and' the name and address of every recipient. Income tax payers must "also, as formerly, complete a return of persons from' whom interest is received.

Minor changes have been made in various other returns on the sheets, but they are of only a machinery character.