RETURN OF INCOME

Te Awamutu Courier, Volume 58, Issue 4187, 22 May 1939, Page 8

RETURN OF INCOME

PENALTY FOR NEGLECT. Furnishing a return of income is an annual duty imposed by law on all companies and persons in business, whether for the whole or part of the income year and irrespective of whether a profit or loss was made; also by all persons in receipt of income from salary, wages, bonus, allowances, interest, rent, annuity or other annual payment, where such income in conjunction with income from free tax Government securities, company debentures issue free of tax, and from dividends or other profits from shares in companies trading in New Zealand exceeds £2OO per annum. Returns are required annually from such persons notwithstanding that by reason of the special exemptions allowable by law they may not be liable for tax. Form No. 3, which is now obtainable at all post oflices, is the form to be utilised by all individual taxpayers, partnerships and estates.

Form No. 4 is to be utilised by com panics.

The return should be completed and forwarded to the Commissioner of Taxes Wellington, C. 3, on or \before the Ist June. If for any reason the return cannot be furnished by the prescribed date application should be made for an extension of' time. Where returns are accepted compiled to a date subsequent to the 31st March, they should be furnished within two months of that 1 date. Any person required by law to furnish a return and neglecting to do so is liable on conviction to a penalty not exceeding £lOO. Neglect to furnish returns at the prescribed time not only renders taxpayers liable to prosecution, but also results in many cases in an assess-

ment of considerably more tax than would otherwise be payable. In the absence of a return the Department has power to make an assessment of an amount on which it is considered tax ought to be levied. The acceptance of the estimated assessment does not, however, absolve the taxpayer from the duty of furnishing a return. If the tax payable under the estimated assessment is more than the amount, payable on the taxpayer’s annual income, the taxpayer may render himself liable for the higher amount in addition to prosecution for failure to furnish a return at the prescribed time. If the tax payable under the estimated assessment is less than the amount of tax payable on the taxpayer’s income, the taxpayer may render himself liable to a penalty of treble the amount of such deficient tax in addition to prosecution for failure to furnish a return at the prescribed time.

Reports of prosecutions for failure to make returns in the past should be taken as a warning, and all persons liable to furnish returns are therefore advised in their own interests to forward such returns on or before the Ist June.