CHRISTMAS BOX TAX

Taranaki Daily News, 23 December 1931, Page 3

CHRISTMAS BOX TAX

UNEMPLOYMENT FUNDS. GRATUITIES TO EMPLOYEES. The question has been raised whether the unemployment tax of 3d in the pound on wages and salaries is chargeable upon a “Christmas box received from an employer, a typical instance being a monetary gift by a householder to his gardener or other employee at Christmas. , The Unemployment Amendment Act makes liable to the tax every person who receives in consideration of his or her employment or service ... any salary or wages (including any bonus, gratuity, extra salary or emolument of any kind in respect of or in relation to employment or service).” Strictly speaking, the definition appears to cover gratuities othe kind mentioned, and if so the employee receiving a “Christmas box” of ios would have to affix special stamps to the value of 2d to his wages receipt. However, the employer could no doubt render this unnecessary if he wished by making a gift in kind or by handing a married employee the money, with instructions to give it to his wife. Gratuities to the postman, the dustman, or anyone else not in the giver s employ are not subject to the tax mentioned. They are taxable as “income other than salary or wages."