TAX PAYABLE BY SOLDIERS

Southland Times, Issue 24011, 29 December 1939, Page 6

TAX PAYABLE BY SOLDIERS

ARRANGEMENTS MADE BY GOVERNMENT

DEMANDS BEING ISSUED EARLIER (United Press Association) WELLINGTON, December 28. Commenting on statements made about income tax payable by soldiers proceeding abroad, the Minister of Finance (the Hon. W. Nash) today said that any suggestion that soldiers would not be allowed to proceed abroad unless and until their tax obligations had been completely fulfilled was entirely without foundation. The soldiers were citizens and as such were expected to fulfil their ordinary obligations and to pay the debts owing by them but their movements either in New Zealand or countries overseas were matters of military duty and were not affected by civil obligations. It was not necessary that they should obtain a clearance certificate in order to leave New Zealand. The necessity for such a clearance applied to civilians only. These were not permitted to proceed overseas until they had made provision for the payment of the tax owing by them. The action now being taken, said the Minister, was with the view to assisting' the members of the forces to ascertain their liabilities and to make provision for them. Thus demands for tax payable in February next were being issued to members of the first echelon. This was for the year ended March 31, 1939. The tax payable for the current year, other than military pay, which is exempt from income tax, will be assessed in the ordinary course .in August or September and will be payable in February 1941. Soldiers who desired to do so might provide that tax payable by them in the future be met by monthly or other deductions from their pay. But whether they made this allotment was a matter for decision by the individuals themselves. Military pay and allowances were exempt from the Social Security charge and income tax. So far as income not exempt from taxation is concerned the assessments and demands fpr tax were being made to soldiers in normal course. Those who were able to pay on the due date were expected to do so, said Mr Nash.