DAY BY DAY

Waikato Times, Volume 94, Issue 14603, 2 March 1921, Page 4

DAY BY DAY

There are some features of the Cana-

dian income tax law Income Tax passed last year whicli In should make the most Canada. disgruntled taxpayer in New Zealand realise that he might be worse off than he is. The normal tax, it may be mentioned, is 4 per cent, on incomes up to 6000 dollars, and 8 per cent, on those above that figure. Added to this, there is a graduated surtax on incomes over 5000 dollars, which rises from 1 per cent, on the first thousand dollars over the 5000-dollar mark up to 65 per cent, on anything over a million dollars. On the top of these two taxes, 5 per cent, of tuejr combined amount is payable on any net taxable income of 5000 dollars or more. In calculating the normal tax a taxpayer is entitled to deduct, if unmarried or a widow or widower ana without dependants, a thousand dollars, and two thousand dollars if possessing dependants, or, if married, with 200 dollars extra for each dependant child upder eighteen. Dividends from companies doing business in Canada whicli have themselves paid normal tax, may also be deducted, while among the exemptions from all income tax are pensions granted for disabilities incurre 1 in the great war, and “money made by speculation outside the ordinary course of the taxpayer’s business.” "j be Canadian taxpayer must not. under this new law, defer The Onus payment of his lax on until he is asked for it The Payor, and must calculate the amount himself, which is as if a man who is going to have some teeth pulled out, had to supply the dentist with the necessary implements. Furthermore, having calculated the amount of tax that lie has to pay. In' must send in with the return by a fixe 1 date —the penalty for being late is the addition of 25 per cent to his tax—at least one-fourth o! - the actual tax for which, by his own estimate, he is Halil ■. tup rest being payable subsequent!'-. \» • ft 11 fi per cent added, in three twoinstalments. Any inclination he

may have to under-state his income and underestimate the amount of his tax is checked by penal clauses of the Act, which provide that for under-statement of not more than 10 per cent., tax must be paid on the deficiency with 10 per cent, added; of not more than 20 per cent., half the inc ome omitted has to be paid, while If the deficiency la over 20 per cent., the whole of the unreported iuoorne r is taken from him. Indeed, the Canadian taxpayer seems to be menaced by fines and penalties of a most rigorous character, whether bis offence is unintentional or due to a desire to get the better of the Government.