RETURNS OF INCOME

Waipukurau Press, Volume XXVIII, Issue 120, 16 May 1932, Page 2

RETURNS OF INCOME

DUE JUNE Ist 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 ofwhether a profit Or a loss was made; also by all persons in receipt of income from salary, wages, interest, rent, annuity or other annual payments, where such income in conjunction with income from freerof-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 allowable by law they may not be liable for tax.

Form No. 3, which is now obtainable at all post-offices, is the form to be uti : lished by all individual taxpayers, partnerships, estates, and commercial, industrial or investment companies. The return should be completed and forwarded to the Commissioner of

Taxes Wellington, on or before the Ist

June. If for any reason the return cannot be furnished by the prescribed date of 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 monthrs of that date. Any person required by law to furnish a return and neglecting to do so is liable on conviction to a penalty of 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 assessment 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 actual assessable income, the taxpayer may render himself loable for the higher amount in addition to prosecution for failure to furnish the return at the prescribed time.

If the tax payable under the estimat-

ed assessment is less than the amount of tax payable on the taxpayer’s assessable 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 prsecutions for failure to make returns in the past should be taken as a warning and all persons liable to furnish returns are therfore advised in their own interests to forward such returns on or before the Is? June. " ‘ 0