TAX ON INCOME

Waipukurau Press, Volume XXVIII, Issue 132, 30 May 1932, Page 5

TAX ON INCOME

DECLARATION MUST BE SIGNED

TEN PER CENT. PENALTY It does not seem to be generally known that, in cases, where declarations (U 855 are required in respect of income (other than wages or salary), if these are not filed with the Post Office or the Commissioner of Taxes and the tax paid within one calendar month of the. due date, a penalty of 10 per cent, is automatically added to- the tax. There is no option about this ,and the Post Office officials must collect it.

This regulation comes into force after June 1, next Wednesday, in re-

spect of the quarterly payment due on May 1. This means that payments made on Thursday and aftei’ will be at the rate of 3 3-10 d in the pound on last year’s income. Only in the case of hardship subsequently proved to the Unemployment Board can this penalty be remitted.

Section 17 of the 1931 Act also imposes a maximum fine, of £5 in cases of conviction before a Court for late payment. The foregoing applies to women equally with men. An Obligation Every man, twenty years of age and over, whether or not he has an income apart from wages or salary, is under the obligation to complete and sign this declaration known as U 855. In the case of women, only those who have an income (exclusive of wages or salary) in excess of £2O are obliged to complete and sign the form. There is no minimum age in the case of women. Where girls and infants receive interest and other income of £2O and upwards, declarations must be made.

There appears to be a great deal of confusion in the community with regard to questions of liability for taxation on income, and how the declaration should be made out. Many persons, because of the difficulties and perhaps hardship involved, are inclined to neglect to attend to their obligations. Where doubt arises, it would pay all concerned to take competent advice from a practising accountant, solicitor or other well Informed person. i