INCOME TAX AMENDMENT

Taranaki Daily News, 21 December 1933, Page 5

INCOME TAX AMENDMENT

AMATEUR ATHLETIC BODIES.

CASES OF HARDSHIP CONSIDERED.

By Telegraph—Press Association. Wellington, Last Night.

The Land and Income Tax Amendment Act of last session granted exemption of £5O for a married man in respect of his wife. Provision is made in the Bill introduced to-day to grant the same exemption to a woman who supports her husband.

Cases of hardship have arisen where a widower or widow has to pay a housekeeper to look after children, and the same allowance is now proposed as if the housekeeper were the wife or, in the case of a widow,-a husband. Public amateur sports bodies such as the New Zealand Rugby Union, Cricket Council, etc., are granted exemption from tax on income other than gate receipts. Gate receipts were never assessed but interest from investments were. The provision gives total exemption.

It is proposed to exclude from exemption the premiums paid on special classes of insurance policies which are purely investments. These policies require no doctor’s certificate, and in the case of death the premiums only are returned. It is held the exemption in such cases was not contemplated by the original Act, in which the intention was that provision for dependents after death should be encouraged.’

A special provision applicable to the assessment of income tax on interest on capital borrowed out of New Zealand states that the amount deducted from the total income by the borrowing company in respect to interest on such money shall be separately assessed and that tax on it shall be charged against the lenders of the money.