RETURNS OF INCOME

Waipawa Mail, Volume LXVI, Issue 94, 16 May 1938, Page 3

RETURNS OF INCOME

PENALTY FOR NEGLECT. Furnishing a return of income is an annual duty imposed by law on all companies and persons in business, xvhether for the whole part of the income year and irrespective of xvhether a profit or loss xvas made; also by all persons in receipt of income from salary, wages, bonus, alloxx'ances, interest, rent, annuity or other annual payment, xvhere such income in conjunction with income from free-of-tax Government securities, company debentures issued 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 alloxvable by laxv they may not be liable for tax. Form No. 3, xvhich is now obtainable at all post-offices, is the form to be utilised by all individual taxpayers, partnerships, estates, and commercial, industrial, or investment companies. The return should be completed and forxvarded to the Commissioner of Taxes, AVellington, C.l, 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. AA’here returns are accepted compiled to a date subsequent to the 31st March, they should be furnished within two months of that date. Any person required by laxv to furnish a return and neglecting to do so is liable oi conviction to a penalty not exceeding £IOO. Neglect to furnish returns at the prescribed time not only renders taxpayers liable to prosecution, but also results in many cases in an assessment of considerably more tax than xvould otherwise be payable. In the absence of a return the Department has power to make an as--sessment of an amount on xx'hieh it is considered tax ought to be levied. The acceptance of the estimated assessment does not, hoxvever, absolve the taxpayer from duty of furnishing a return. If the tax payable under the estimated assessment is more than the amount payable on the taxpayer’s actual income, the taxpayer may render himself liable for the higher amount ill addition to prosecution for failure to furnish the 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 the 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 oxvn interests to forward such returns on or before the Ist June.