United States. Dept. of Commerce and Labor United States. Bureau of Foreign Commerce.

Consular reports, Issues 196-199 online

. (page 13 of 82)
Online LibraryUnited States. Dept. of Commerce and Labor United States. Bureau of Foreign CommerceConsular reports, Issues 196-199 → online text (page 13 of 82)
Font size
QR-code for this ebook


the satisfaction of the Commissioner at the date fot making the annu&l

return of income, was invested by such company on mortgages of land

in New Zealand duly registered, and also that such mortgages of

land had been assessed for land-tax under Schedule A of this Act, and

that the then holder of any such debenture was residing beyond New

Zealand ; and such regulations shall from time to time be prescribed as

may be necessary to give effect to this provision.

** Provided also that where a company has borrowed, or may here-
after borrow, money on debentures, and the land in New Zealand owned
by such company is in any way charged as security for the moneys pay-
able under such debentures, the amount so charged shall be deemed to
be a mortgage of land, and may be deducted in any annual or other
return to be made by the company, and such amount shall be returned
by the company as agent for the debenture-holders, and the company
shall be liable to be assessed and to pmy tax accordingly on behalf of
the holders of such debentures, but no such debenture- holders shall be



Digitized by LjOOQ IC



76 LAND TAXATION AND LABOR LAWS IN NEW ZEALAND.



allowed any deduction by way of exemption. The interest accruing
due upon debentures so deducted shall not be assessed as liable to
income-tax either by the company or the debenture- holders. No deduc-
tion shall be allowed under this provision unless and until the company
proves to the satisfaction of the Commissioner that the amount claimed
to be deducted as aforesaid was a charge upon the land of the com-
pany."
Company not 3. No company shall be entitled to any exemption in respect of the assess-
cmption in* *e- ™^"^ ^^^ ^^^ ^^ income, but the person receiving any income in respect of any
spcct of income- share or interest in any company shall not be liable to tax thereon.

How Hfc-insur- 4- '" respect of companies or associations carrying on the business of life
a"«c^™P*°*** insurance in New Zealand (including the department created under "The
Government Insurance and Annuities Act, 1874"), tax shall be assessed and
paid upon the income derived by each such company or department from in-
vestments of any kind other than investments in land or upon mortgages of
land.



Schedule D.



SCHEDULE D.



INCOME PROM BUSINBSS.



Meaning of ex-
pression.



Extended
meaning of " in-
come from busi-
ness."



Persons liable i. Every person shall be liable to tax in respect of income derived from busi-
ness, ness on the full amount of the balance of the profits or gains of such business.

[" Income derived from business " means the gains or profits derived or re-
ceived in New Zealand from any trade, manufacture, adventure, or
concern in the nature of trade, whether the same shall be respectively
carried on in New Zealand or dsewhere, in each year ending on the
thirty-first day of March, and not taxed under any other Schedule of
this Act, and shall include income so derived or received from any
pastoral lands of the Crown in New Zealand held by any person under
lease or license issued by or on behalf of the Crown.]
(4.) In Schedule D,—

The definition of " income derived from business" in the first sec-
tion of the said Schedule is hereby repealed, and in lieu thereof the
following is enacted : —

"* Income derived from business' includes, but without limiting
the meaning of those words, the gains or profits derived or received
in the colony by any person in or out of the colony in each year
ending the thirty-first day of March, from the following sources : —
(a.) From any trade, business, manufacture, adventure, under-
taking, or concern of whatsoever nature :
(d.) From the purchase, sale, or other disposition of real or per-
sonal property, or of any right, estate, or interest therein :
(c) From loans, investments, or deposits of money whatever may
be their nature, and howsoever made, and from any con-
tract whatever under which income is derived or received,
except investments made upon mortgages of land in the
colony :
{d.) Income from pastoral lands of the Crown in the colony held
under lease or license issued by or on behalf of the Crown :
{e.) From every source or kind whatsoever (including income
derived or received from lands or mortgages) outside the



Digitized by



Google



LAND TAXATION AND LABOR LAWS IN NEW ZEALAND. 77

colony whereby income is derived or received in New

Zealand by any person:

But shall not include income liable to tax under any other Schedule

of this Act or expressly exempt from taxation under this Act.

[2. Tax shall be assessed and paid by every person upon the income de- Deduction from

rived from business as aforesaid, and, when the taxable amount of income so ^*jjy ^f^^^^

derived has been ascertained in accordance with this Act, every person or firm ^°°-

of partners engaged in any business shall be entitled to a deduction by way of

exemption of three hundred pounds ; and no person, whether in partnership or

carrying on business alone, shall be allowed more than one such exemption

either in respect of business, or employment, or emolument.]

Section two of the said Schedule is hereby repealed, and in lieu

thereof the following provision is enacted : —

** (2.) Tax shall be assessed and paid by every person upon the income Deduction from

derived from business as aforesaid, and, when the taxable amount ofbywayofexemp-

income so derived has been ascertained in accordance with this Act, '^°"'°f****?^'"'

' come irom busi-

every person, whether carrying on business alone or in partnership, shall nes8.
be entitled to a deduction by way of exemption of three hundred pounds;
but no person shall be allowed more than one such exemption either in
respect of income derived from business, or in respect of income derived
from employment or emolument."



SCHEDULE E. Schedule E.

INCOMB PROM BMPLOYMBNT OR BMOLUMBirr.

I. Every person shall be liable to tax in respect of income derived from P««ons liable.
employment or emolument and not derived from business as aforesaid. ployment or

"Incomes derived from employment or emolument" means the gains or *f"*'
profits derived or received in New Zealand in each year ending on the pression.
thirty-first day of March, and whether such person is residing in New
2^aland or elsewhere, from the exercise of any profession, employment,
or vocation of any kind not otherwise liable to taxation under this
Act, or from any salary, wages, allowances, pension, stipend, or charge
or annuity of any kind not charged on land.
[2. Tax shall be assessed and paid by every person upon the income de- Deduction from
rived from employment or emolument as aforesaid, and, when the taxable by'^^ay^f^JJ'JJJJp*
amount of income so derived has been ascertained in accordance with this Act, ^*o"-
every person or firm of partners engaged in any employment or receiving any
emolument shall be entitled to a deduction by way of exemption of three hun-
dred pounds ; and no person, whether in partnership or engaged in such em-
ployment alone, shall be allowed more than one such exemption either in
respect of business, employment, or emolument.]
(5.) In Schedule E,—

Section two of the said Schedule is hereby repealed, and in lieu Deduction from
thereof the following is inserted : — by-way of e^Te^inp^

"(2.) Tax shall be assessed and paid by every person upon the f'"^" '" cases of
^ ' r / y 1- r mcome from em-

income derived from employment or emolument as aforesaid, and, pi ov men t or
where the taxable amount of income so derived has been ascertained *"*** ""**°''
in accordance with this Act, every person, whether engaged in any



Digitized by LjOOQ IC



78 LAND TAXATION AND LABOR LAWS IN NEW ZEALAND.

employment or receiving any emolument either alone or in partner-
ship shall be entitled to a deduction by way of exemption of three
hundred pounds ; bui no person shall be allowed more than one such
exemption either in respect of income derived from employment or
emolument, or in respect of income derived from business."



Schedule F. SCHEDULE F.

MISCELLANEOUS RULES AS TO ASSESSMENT OP INCOME.

>v.lf?^'^^'' '** ** ^^^ losses and outgoings actually incurred by any person or company in
^ross amount of production of the income shall be deducted from the gross amount of his

income. :„^^«,« .

mcome :

For what mat- 2. But, in estimating the balance of the income liable to tax in the case of
ters no deduction
10 be allowed, any busmess, employment, or emolument, no sum shall be deducted therefrom

for—

(a.) Any sum expended for repairs of premises occupied for the purposes
of the business or employment, nor for any sum expended for the
supply of or repairs to or alterations in any implements, utensils, or
machinery employed or used for the purposes of such business or em-
ployment, beyond the sum usually expended in any year for such
purposes;

(^.) Nor on account of loss not connected with or arising out of such busi-
ness or employment; nor on account of any capital withdrawn
therefrom, nor for any sum used or intended to be used as capital in
such business or employment, nor for any capital used in the im-
provement of premises occupied for the purposes of such busmess or
employment ;

(r.) Nor on account of any interest which might have been made on such
sums if laid out at interest;

{d.) Nor for any bad debts, except bad debts proved to be such to the sat-
isfaction of the Commissioner;

(e.) Nor for any average loss beyond the actual amount of loss after ad-
justment, nor for any sum recoverable under any insurance or con-
tract of indemnity;

(/.) Any disbursements or expenses whatever not being money wholly and
exclusively laid out or expended for the pur|x>ses of such business
or employment ;

(^.) Any disbursements or expenses of maintenance of the parties, their
families, or domestic establishments ;

(A.) Nor for the rent or value of any dwelling-house or domestic offices, or
any part of such dwelling-house or domestic offices, except such
part thereof as may be used for the purposes of such business or
employment not exceeding such proportion of the said rent or value
as may be allowed by the Commissioner ;

(j.) Nor for any sums expended in any other domestic or private purposes

distinct from the purposes of such business or employment.

Computations 3. The computation of tax arising in respect of any business or any em-

scparatcly* *"* ployment carried on by two or more persons jointly shall be made and slated

separately and distinctly from any other tax chargeable on the same persons or

any of them.



Digitized by LjOOQ IC



LAND TAXATION AND LABOR LAWS IN NEW ZEALAND. 79

(6.) In Schedule F,—

The following provision shall be read as part of the third section of Ameadinent of
. , ^ , , , section 3 as to

the said Schedule : — partners.

" Persons carrying on any business or employment in partnership

shall be liable to make a joint return as such partners in respect of

the business or employment which they carry on or are engaged in,

with such particulars as may from time to time be prescribed.

4. Every company and local authority, and every person carrying on busi- Companies,
ness or engaged in any employment, shall, in such manner and form as may be ^^^ ^f perMms
prescribed, from time to time furnish the Commissioner with lists of all persons employed,
employed by them, and the salary, wages, stipend, or other allowances or emol-
ument paid or allowed to each such person.

5. Allowances made to any person by way of house-rent, and all amounts Certain allow-
received or receivable by way of extra salary, bonus, allowance, or emolument, into account as
shall be taken into account as part of the annual income liable to taxation. income.

6. When any person or company occupies for the purposes of business or Deduction al-
employment any land in respect of which tax on land is payable by him or it Jj^c^ liSld occ"
under this Act for the same i>eriod, such person or company shall be entitled, p»ed for business
in any return of income derived or received from such business or emplo3rment has paid tax on
for such period, to deduct a sum equal to five per centum on the amount on *

which such person or company is liable to pay tax on such land, urn/er Sched-
ule A to this Act.

I At the end of section six of the said Schedule the following words Amendment 01

are added : « under Schedule A to this Act." **^''^ ^'

7. Any person who has effected or may hereafter effect an insurance on his Deduction of
own life for hb own benefit, or for the benefit of his Wife and children, or one \^lT^^^'^nl\
or some of them, with any company or association carrying on the business of P'* ji"°> »1-
life insurance, shall be entitled to deduct firom his income as an outgoing the

amount of premiums paid in any year in respect of such insurance: Provided
that no greater deduction than fifty pounds shall be allowed in any year in re-
spect of all premiums ]>aid for such insurance.

The following provision shall be read as part of section seven of the said Addition to
Schedule:- ao„'."fo'?

" Where a person carries on business or is encased in any employ- life-insurance
.... , premiums.

ment m partnership with one or more other person or persons, and is in

receipt of no other income than that derived from such business or em-
ployment, the amount paid in respect of his life insurance, as herein-
before provided, may be deducted as an outgoing from such business or
employment, or from the gross amount of the partnership income, as
the case may be.

" The provisions of this section shall apply to any insurance effected
with the Government Insurance Commissioner under any Act or authority
relating to such insurance."



Digitized by VjOOQ IC



LAND AND INCOME ASSESSMENT ACT, 1891.



MEMORANDUM AS TO THE ASSESSMENT OF INCOME.



Subject.




Annuities not charged on land, assessable...

Bad debts, allowance for

Boarding-school proprietors, storekeepers,
tradesmen, hotelkeepers, and others, do-
mestic expenses not deductible..

Bonus assessable

Building society dividends and profits
assessable

Business premises occupied by owner,
allowance for : Depreciation of„

Calls paid on shares and losses on invest-
ment in shares not deductible

Capital, interest on, not deductible

Capital used in or withdrawn from business
not deductible

Commissions assessable

Deductions of losses, outgoings, &c

Deposits, interest on, assessable

Depreciation of and repairs to business
premises, plant, and machiner>-

Dividends on shares not to be included,
excepting building societies

Employes, list of, to be supplied....

Exemption up to ;C3oo

Families and domestic establishments, ex-
penses of, not deductible.

Fees assessable

Firms, allowance of exemption to

Firms, returns of.

Firms' returns, sums drawn by partners
not deductible from

Forms of returns obtainable

Goodwill, deduction cannot be claimed for
diminution in value of.

Grain, income from dealings in, assessable..

Hotelkeepers, boarding-school proprietors,
storekeepers, tradesmen, and others, cost
for maintenance of family, &c., not de-
ductible from income of.

House-allowance not assessable...

Income, definition of.

Income from beyond the colony assessable...

Income-tax in any year, on what payable....

So



X3(«0»i5



30



35

13 W
30
»3

3(<^).2o
10, II,

13(a)
24.39

36

5.6

13 (i-).

»3 (0. M

30

6

27,28

28



«4



2.3.4

2, 3 (^).

7. '9




Income-tax and land-tax paid not deduct-
ible

Incorrect returns, check on, provided....

Insurance, losses recoverable not deduct-
ible..„. ^

Insurance funds, sums to form, not deduct
iblc

Interest, assessable or otherwise.



Interest on capital not deductible...

Investments other than mortgage, interest

on, assessable

Land-tax and income-ux paid not deduct-
ible ^

Land beyond the colony, income from,

assessable

Land within the colony, income from, not

assessable— exception.

life-insurance premiums deductible up

to jCso

Live-stock, income from dealings in,

assessable

Loans other than upon mortgage, interest

assessable

Losses, outgoings, and expenses deduct-
ible

Losses, outgoings, and expenses which

are not deductible

Losses of one business deductible as

against profits in another

Losses of business not deductible from

income from employment

Ix>sses of previous year not deductible....
Machinery and plant, depreciation in, and

new

Maintenance of parties, their families, or

domestic establishments, not deductible.
Meat, profits from dealing in, assessable...
Mming on Crown lands assessable for

income-tax

Mortgages, interest on, how to be dealt

with



Para-
graph.



'3 (/).»«
41

X3W

3a

3(c),

«3W.i6.

17,18,

19, 90

35

3ic)
X3 U), 21

3(0.7

7, 22

33.34



3ic)

«3

«3

37

37
38

>«, 13 (<»)

13 (r). M



8.3a

3(<'). «7.
18, 19



Digitized by



Google



LAND TAXATION AND LABOR LAWS IN NEW ZEALAND. 8 1
INDEX — continued.



Subject.



Overdraft in connection with business,

intenst on, deductible.

Partners of firms, allowance of exemption

to, and individual returns by

Pastoral lands of Crown, income from,

assessable,

Penalties...... „

Pensions

Persona! property, profits from trading in,

assessable

Plant and machinery, depreciation and

repairs to..

Power to obtain information...

Premises, business, allowance for, when

occupied by owner: Depreciation of.....
Produce of land, income from dealings in,

assessable..

Profits from live-stock, grain, wool, meat,

&c., assessable

Profits only ascertained beyond the colony

assessable

Repairs to business premises, renewals to

plant and machinery, &c

Real property, profits from dealing in.



Para-
graph.



z6

6, 29

3(^,8

4.9

3W

XX, 13 (a)
4X



». 3
x«» 13 («)

3(^)



Subject.



Rent of business premises deductible

Rent of private residences not deductible

Rents, assessment of.... .»

Residence free, not assessable to occupier^

Returns, further or fuller, may be re-
quired..

Returns to be made by all employ^ in
receipt of ;(j9oo or more per annum

Salaries and stipends assessable...

Shares, calls, dividends, and profits on,
bow treated

Storekeepers, boarding-school proprie-
tors, hotelkeepers, tradesmen, and
others, domestic expenses not deduct-
ible

Sums drawn by members of firm not
deductible from firm's return

Tradesmen , hotelkeepers , boarding-school
proprietors, storekeepers, and others,
domestic expenses not deductible

Wages assessable

Wool, income from dealings in, assess-
able«

Year for which tax payable, and for which
returns to be made



Para-
graph.



i3(A),a6

i3(A),a6

7

31



36

4



14

4



Memorandum as to Assessment of Income.

(i) Income tax in any year is payable on the amount of income derived during the twelve
months previous to such year. The returns required to be made by the 1st of June, 1895, will
show the amount of income derived during the year ending the 31st of March, 1895. The tax
payable on the amoimts shown in these returns, therefore, will be paid in the financial year ending
the 31st of March, 1896. Forms of return are obtainable at any postal money-order office.

When the date of the annual balance does not fall on the 31st of March return may be
made at the date of such balance, provided it is not more than three months distant from the
31st of March. In all other cases an estimated return should be made, subject to revision
when the balance sheet is completed.

(2) Income is defined in the land and income assessment act of 1891 as meaning "any
gains or profits derived or received by any company or person in any year, or by any means
or from any source made the subject of taxation under this act.*' The profits for the year and
the gross income required to be stated in the return must not be taken to be the money actually
received, or the cash receipts merely, but all sales or fees for services, whether for cash or on
credit, from which losses, outgoings, and expenses will be deducted. Income derived and
received in or from the colony, and income received in the colony although derived from a
source beyond the colony, are alike liable to taxation. Thus, a resident in New Zealand
receiving income from any place outside of New Zealand should include it in his return, ex-
cept in cases provided for in clause 9;^ and any person or company deriving income from the
colony, notwithstanding that the actual profits are only ascertained at a point beyond the colony,
should make a return of profits so derived.

(3) The following is the definition of income derived from business:

" * Income derived from business ' includes, but without limiting the meaning of those
words, the gains or profits derived or received in or from the colony by any person, firm, or



No. 196-



Digitized by



Google



82 LAND TAXATION AND LABOR LAWS IN NEW ZEALAND.

company in or out of the colony in each year coding the 31st of March, from the following
sources:

" {a) From any trade, business, manufacture, adventure, undertaking, or concern of what-
soever nature.

" (A) From the purchase, sale, or other disposition of real or personal property, or of any
right, estate, or interest therein.

" (r) From loans, investments, or deposits of money, whatever may be their nature, and
howsoever made, and from any contract whatever under which income is derived or received,
except investments made upon mortgages of land in the colony.

" ({/) Income from pastoral lands of the Crown in the colony held under lease or license
issued by or on behalf of the Crown.

" (e) From every source or kjnd whatsoever (including income derived or received from
lands or mortgages) outside the colony whereby income is derived or received in New Zealand
by any person.

** But shall not include income liable to tax under any other schedule of this act, or expressly
exempt from taxation under this act.'*

(4) The following is the definition of income derived from employment or emolument :

" * Income derived from employment or emolument ' means the gains or profits derived
or received in New Zealand in each year ending on the 31st of March, and whether such per-
son is residing in New Zealand or elsewhere, from the exercise of any profession, employ- ■
ment, or vocation of any kind not otherwise liable to taxation under this act, or from any
salary, wages, allowances, pension, stipend, or charge, or annuity of any kind not charged on
land."

(5) A deduction of ;£'300 by way of exemption is allowed from the income of every
resident in the colony. No such allowance is, however, made in the case of a person not
domiciled or not permanently resident in New Zealand. This deduction, when allowable, is
made in the income-tax office, and should not be deducted by the taxpayer when filling in his
return.

(6) In asses.sing firms and individual partners for income tax the exemption for each
partner will be allowed in the firm's assessment, and each partner will pay in full on his
income other than that derived from the firm, if he has any ; but if the income from the firm
is not sufficient to allow of the full deduction of the exemption for each partner the remainder
of the exemption will be deducted from the partner's individual income. If the share of
income of any partner does not amount to ;f 300 no deduction by way of exemption greater
than the share of such partner in the income can be deducted on his account in the firm's
assessment.

(7) Income derived from land in New Zealand, except from land described in the next
succeeding clause, should not be included in the return of income; but income received in
the colony from land outside New Zealand should be included. The same rule applies to
rents, and to any profit derived from the use or produce of land.

(8) Income from pastoral lands of the Crown in the colony held under lease or license
issued by or on behalf of the Crown, and income from Crown lands held or occupied for any
kind of mining, is liable to income tax, and should be returned, the land and the interests of
lessees or occupiers therein being exempt from land tax.

(9) A pension derived from the Crown in Great Britain or from any British possession
need not be included in a return of income if income tax has been paid thereon in the place
from which it is derived.

(10) A deduction from income can not be claimed for or on account of depreciation in



Online LibraryUnited States. Dept. of Commerce and Labor United States. Bureau of Foreign CommerceConsular reports, Issues 196-199 → online text (page 13 of 82)