SOCIAL SECURITY CHARGE

Southland Times, Issue 23652, 29 October 1938, Page 6

SOCIAL SECURITY CHARGE

BUILDING SOCIETIES EXEMPT NO PAYMENT TO BE MADE BY WAR PENSIONERS (Special to The Times) WELLINGTON, October 28. Some doubt having been raised about the liability of building societies for payment of the social security charge of one shilling in the £1 on their incomes, inquiries were made in official quarters today and it was learned that building societies are exempt from this payment. Under the Land and Income Tax Act they are not required to pay income tax and as the Social Security Act imposes a charge only on those incomes liable under the land and income tax, building societies automatically come under the heading of exemptions. Of course, dividends from these societies in the hands of shareholders are liable to the social security charge. In the same way war pensions are exempt from this charge and the Minister of Finance (the Hon. W. Nash) also has already undertaken to exempt from the charge all benefits payable under the Act. This point was raised by the Government’s opponents with some Vigour during the election campaign, but their contention that the benefits w -e to be subject to a charge of one shilling was effectively denied. • Mr Nash has also announced that persons between the ages of 16 and 20 who are still at school are to be exempt from the registration fee.