NO CONCESSIONS.

Star (Christchurch), Volume XLIV, Issue 296, 14 December 1931, Page 3

NO CONCESSIONS.

Demands for Payment of Year’s Taxes. COUNTRY NEEDS MONEY. Per Press Association. TV ELLINGTON, December 14. Present indications are that there is practically no hope of any concession this 3 r ear in regard to demands for the payment of land and income tax. The due date has not been notified yet, but unless the whole amount of the taxation is paid by that date 5 per cent penalty on the amount of taxation liable to be paid is imposed upon the defaulter. Under the existing law there is no provision for allowing a person to pay his taxation after the due date without the penalty for late payment being added. The law concerning payment of income tax is rigid and Parliament would have to pass amending legislation before anything could be done to allow taxation payments to be made in instalments after the due date. There is at present no intention on the part of the Government to do anything of the kind. This being so, taxpayers will have to meet their obligations promptly or be subject to a 5 per cent penalty. This is likely to cause embarrassment •to many taxpayers whose incomes have been considerably reduced since last year. The coming demands will be issued to cover returns of income for the year ended March 31, 1931, and assessments already sent out by the department show the unmistakable effect of the recent direct taxation increases. In numerous instances taxpayers will be called tipon to pay double and even treble the amount of taxation they had to find in the previous year, and it is almost certain that hardship will be experienced by many individuals and companies in meeting their obligations. Taxpayers now are called upon to pay into the Consolidated Fund levies calculated upon what is probably a much higher rate of income than is being received at the present time. The Revenue Needed. It is pointed out in official circles that any remission of taxation would be quite impossible. Budgetary estimates already have been revised to meet the changing conditions and the whole range of Government activity is dependent upon the estimated revenue being received. Borrowing by means of Treasury bills has been undertaken by the Government in anticipation of revenue, and a serious position would be created if this revenue did not materialise. For that reason alone much reliance is placed upon the returns from income and land tax.