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

Consular reports, Issues 196-199 online

. (page 14 of 82)
Online LibraryUnited States. Dept. of Commerce and Labor United States. Bureau of Foreign CommerceConsular reports, Issues 196-199 → online text (page 14 of 82)
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the value of premises, land, or buildings.

(il) The deduction which can be allowed for depreciation of machinery and plant is an
amount which represents the diminished value by reason of wear and tear during the year of
any machinery or plant, such wear and tear being of a kind which can not be made good by
repairs.



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LAND TAXATION AND LABOR LAWS IN NEW ZEALAND. 83

The cost of repairing and maintaining plant, machinery, and buildings in a state of effi-
ciency will be allowed, and, in some cases, a deduction may be claimed for the cost of replac-
ing worn-out machinery and buildings. The outlay in the purchase and erection of new and
additional plant, machinery, and buildings can not be allowed as a deduction from income,
such expenditure being a charge against capital. The same applies to expenditure on im-
provements.

(12) Profits made by dealing in live stock, grain, wool, meat, or any other produce must
be retimed as income.

^13) From the gross income may be deducted losses, outgoings, and expenses incurred in
New Zealand in the production of such gross income, but not further or otherwise; but certain
deductions can not be allowed, and some of these are stated at length in part 2, Schedule F,
which is as follows :

" But in estimating the balance of income liable to tax in the case of any business, employ-
ment, 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
emplojrment, beyond the sums usually expended in any year for such purposes; provided that
the commissioner may allow such deduction for depreciation of any implements, utensils, or
machinery as he may consider just in respect of the diminished value during any year by
reason of fair wear and tear not being of a kind that could be made good by repairs or by the
implements, utensils, or machinery being rendered obsolete or useless.

" {d) Nor on account of loss not connected with or arising out of such business 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 improvement of premises occupied for the purposes of such business or employ-
ment

" {c) Nor on account of any interest which might have been made on such sums if laid
oat at interest.

** (</) Nor for any bad debts, except bad debts proved to be such to the satisfaction of the
commissioner.

" (g) Nor for any average loss beyond the actual amount of loss after adjustment, nor for
any son recoverable under any insurance or contract of indemnity.

** (/) Any disbursements or expenses whatever, not being money wholly and exclusively
laid out or expended for the purposes of such business or employment.

" ii) -A^ny disbursements or ex|>enses 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 pur-
poses of such business or employment, not exceeding such proportion of the said rent or value
as may be allowed by the commissioner.

" (1) Nor for any sums expended in any other domestic or private purposes distinct from
the purposes of such business or employment.

" (J) Nor for the amount of any land tax or income tax paid under any act.

*' (Jk) Losses, outgoings, and expenses in connection with income derived from land or
mortgages shall not be deducted from the gross amount of income derived from business,
employment, or emolument; provided always that, if such losses, outgoings, and expenses are
difficult of apportionment between land or mortgages, and business, employment, or emolument,
they may be adjusted in such manner as the commissioner may think Bt.

" (/) In estimating the balance of the income liable to tax in the case of any business,
employment, or emolument, no sum shall be deducted therefrom for any interest payable in
respect of any mortgage, unless such mortgage is secured upon the premises actually used
for the purposes of such business, employment, or emolument."



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84 LAND TAXATION AND LABOR LAWS IN NEW ZEALAND.

(14) Hotel keepers, boarding-school proprietors, storekeepers, tradesmen, and others,
whose household expenses, including cost of board of themselves and families and of main-
tenance of their domestic establishment, are not kept distinct from the outgoings in connec-
tion with their business, should reduce their claim for deductions by such a sum as will cover
the cost of such domestic establishment if maintained separately. This expenditure is not
deductible from income — see paragraph 13 (g).

(15) The amount of debts proved to be bad and actually written off daring the year for
which the return is made may be claimed as a deduction in the return of income, but noth-
ing should be deducted by way of a general estimate or reserve for bad and doubtful debts.
A list of all deductions claimed for bad debts must be supplied to the commissioner on its
being demanded, and also any evidence he may require to prove that the debts are actually
bad and became so during the year.

(16) Interest paid on bank overdraft and other advances required and obtained for the
purpose of carrying on business only may be deducted.

(17) Interest paid on mortgages of premises used by the owner for purposes of business
or employment may be deducted in a return of income, but interest on any other mortgage
may not be deducted.

(18) Interest received on mortgages of land in New Zealand should not be included as
income, the mortgages being liable to land tax.

(19) Interest received on mortgages of land outside New Zealand should be included as
income.

(20) Interest received from money on deposit or from any source other than mortgages
of land in New Zealand should be included as income.

(21) In making deductions from income neither income tax nor land tax paid should be
included as expenses or outgoings incurred in the production of income.

(22) In making up the return of income all profits made by the use or produce of land
in the colony must be omitted on the one side, and all outgoings and expenses incurred in
connection with land in the colony must be omitted on the other. (Vide paragraph 8 for
exceptions.)

(23) A person or company can not claim to deduct any sum written off the good-will ac-
count, for any diminution in the good will must be held to be a loss of capital, and not a
decrease of income.

(24) Calls paid on account of shares in registered companies, or losses made on invest-
ment in shares, can not be deducted from income, and dividends, excepting dividends paid or
proBts credited by any building society, should not be included in income.

(25) The deduction to be allowed when premises are occupied by the owner for purposes
of business or employment is to be calculated at 5 per cent on the amount on which the
owner is liable to pay land tax in respect of such premises ; this is not to be taken to be 5
per cent on the value of the property, but 5 per cent on the sum on which land tax is paya-
ble in respect of the property — that is, after deducting the improvements and mortgages, and
exemption in cases where one has been allowed. WTien portion of the premises only arc
occupied by the owner for purposes of business or employment, a deduction can only be
allowed in respect of the portion so occupied. This allowance will be made in the income-
tax office, and should not be included in the deductions in the return.

(26) Where a person pays rent for the premises used for business or employment he is
entitled to deduct the rent in his return of income, but he can not deduct the rent paid for
a private residence or for such part of his premises as may be used as a residence, or for any
portion relet.

(27) The return of a firm should be distinct from that of the individual partners, and
should include all the gains and profits of the firm.

(28) Sums drawn by members of a firm as salary or wages can not be deducted as out-
goings or expenses of the firm in its return of income, and neither can any individual draw-
ings by or any sums credited to partners out of profits.



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LAND TAXATION AND LABOR LAWS IN NEW ZEALAND. 85

(29) PaitDers in a firm should make separate individaal returns of income derived fix>m
any soorce other than from the firm, but no income from the firm should be included in the
separate return.

(30) Fees, commissions, bonus, or extra allowance paid in consideration for work done
or services rendered should be included in income, and, on the other hand, may be deducted
in the return of income of the person or company making the pa3rment.

(31) The annual value of a free residence and money received by way of house allowance
in lieu of a residence are not assessable for income tax and should not be included in a return
of income.

(32) Sums set aside to form an insurance fund are not deductible.

(33) Amounts paid, not exceeding ^^50 in the year for which the return is made, for life-
insurance premium on the life of the person for whom the return is made, for his own benefit
or for the benefit of his wife or children, are deducted in an assessment of income. This
allowance will be made in the income-tax office, and should not be included in the deductions
in the return, on the face of which the actual amounts paid should be stated.

(34) Where a person has no income apart from that derived from a business carried on in
partnership, the deduction as above for life insurance will be made in the assessment of the
partnership.

(35) Interest on capital employed in business should not be included in deductions.

(36) In order to obtain information as to persons receiving salaries, a schedule has been
inserted in the return of income on which should be stated the names, occupations, and
addresses of employ^; but it is not necessary to give the names, etc., of those whose total
annual payment does not exceed ;f 160. This, however, does not relieve an employee fix)m
making a return if the income aroonnts to ;£^200.

(37) If a person is engaged in more than one business, he may claim to set off the losses
in one business against the profits in another, and he will be liable to taxation on the balance
of income. In filling up his return he should state the particulars for each business separately.
A loss made in business can not, however, be deducted from income derived from emplojrment
or emolument.

(38) Losses made in a previous year can not be carried forward and deducted from the
profits of the year for which the income is returned.

(39) Annual or other dividends paid or profits credited to any member or shareholder in
any building society are part of the income of such member or shareholder, and should be
included in his return of income. The societies themselves are exempt from tax.

(40) Under section 5 of the act of 1893 a person or company may be required by the
conunissioner to make a new or further or fuller return of income.

(41) Power is given by section 6 of the act of 1893 ^^ ^^^ commissioner, or any person
appointed by him, to require, for the purpose of obtaining full information as to land or income,
the production at his office or at any place appointed by him of any deeds, instruments, books,
accounts, trade lists, stock sheets, etc. He may also require information to be given to him
verbally or in writing, and may require any person or the public officer of any company to
attend at the office of the commissioner, or at any place appointed by him, to be examined
as to land or income. The attendance of any person' whom the commissioner may deem
able to furnish information as to the land or income of any other person or of any company
may also be required.

(42) Section 7 provides a penalty of not less than £2 and not more than ^loo for failure,
without resonable excuse, to comply with the provisions of sections 5 and 6 of the act of 1893.

JOHN McGOWAN,
Commissioner of Taxes.
Land and Income Tax Office,

Wellington^ February ii^ iSgS-



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86 LAND TAXATION AND LABOR LAWS IN NEW ZEALAND.

Income-Tax Returns.



All Letten, &c., should be ad-
dressed " The Commissioner of
Taxes, Wellington/' and not to
any name. Letters so addressed
go free by post.



FonnC.



PERSON OR FIRM.
«*THE LAND AND INCOME ASSESSMENT ACT, 189I.'*

In pursuance of the above act, and of the regulations made thereunder, every person in
receipt of income within the meaning of the said act is required to HU up the following return
as far as is applicable to his particular case, and deliver the same at, or forward it by post to,
the office of the commissioner of taxes, Wellington, on or before the 1st day of July, 1896.

JOHN McGOWAN,
Commissioner of Taxes.

Note. — Any person failing or neglecting to furnish a return at the prescribed time, or any person making
a false return, is liable to a penalty of not less than £s nor more than jC'oo, and to pay treble extra duty.



RETURN OF THE INCOME OF



i^ Name in full : -

^ Postal address:

c

, Occupation :



J made in pursuance of 'Hhe land and income assessment act, 1891," and the regulations



V thereunder.

•c



INCOME DERIVED DURING THE YEAR ENDING 3IST MARCH, 1896.



GROSS INCOMB FROM BUSINESS.

X. From interest of money deposited or lodged with any bank, society, company, firm, or person.,
a. From interest on bonds, debentures, or like instruments

3. From annuities or other annual payments

4. From the trade, bu-siness, manufacture, or concern of , carried on by me at (as per

details shown under head " statement of gross income."

5. From pastoral lands of the Crown

6. From mining on Crown lands

7. From dividends paid or profits credited by any building society^ I

8. From any source not coming within any of the foregoing heads (state source) ,



Total..



N. B. — Dividends and debenture interest received from companies trading within the colony
should not be included as income.

Income derived from any source whatsoever beyond the colony and received In the colony
should be included in this return.

Deductions {as per details shoTvn under head ** deductions /rom gross income").
Losses, outgoings, and expenses incurred in the production of the gross income stated above... ....^^

Net income derived from business.. ..£



Amounts.



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LAND TAXATION AND LABOR LAWS IN NEW ZEALAND.



87



GROSS INCOME PROM SMPLOYMBNT OR KMOLUMBNT.



I. From the profession » employ mcnt, or vocation of„

9. From salary, wages, allowances, bonus, pension, stipend, fees, charge, or annuity of any kind..

3. From commissions or share of profits by way of or in lieu of salary

4. From any other source not coming within any of the foregoing heads (state source)..



Amounts.



Total £.

Deductions.

Losses, outgoings, and expenses inctured in the production of the gross income stated above... „;^
Net income derived from employment or emolument J^



I claim deduction on account of amount actually paid by me during the year as life insurance

premiums on my own life..... £

N. B. — This deduction is limited to ;^5o, and if the amount paid be less than (hat sum, the exact figures
should be entered.

NoTB. — The exemption of £y>o allowed by law will be deducted in the office of the commissioner of taxes.

I, the persoQ making the foregoing return, do solemnly and sincerely declare that the
same, and the statements therein referred to or accompanying such return, contain true and
accurate details of the several matters and things set forth, and in particular contain a true
and accurate account of all income derived by me during the year ending 31st March, 1896;
and the deductions claimed by me are those which I am legally entitled to deduct. And I
make this declaration under the provisions of "the land and income assessment act, 1891."

Dated this day of , 189

[Usual signature :] .

Note. — Any change of address should be at once notified to the department.

/ claim to have a deduction made frotfi net income shown under foregoin; head " deductions'''
on account of liability to pay land tax in respect of land occupied for business or etftploy-
mentf such deduction being equal to j per cent on the amount upon which I am liable to
pay land tax on such land under Schedule A, ** land and income assessment acty iSgrJ*^



Asacss-

ment No.



Description of land used as place of business or
employment.



Unimproved
value.



Amount of
mortgage.




N. B.— No deduction can be claimed by the owner in respect of premises or portion of premises let to a



Mimes f addresses, and shares of partners.
(To be filled up in the case of returns made by or on account of a firm.)



Name in full of each partner



Address.



Share or interest in firm.



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88 LAND TAXATION AND LABOR LAWS IN NEW ZEALAND.



SteUement io be made by persons acting as attorneys or agents.

Description of every person for whom I act as attorney or agent where principal b permanently or tempo-
rarily absent from the colony and is in receipt of income liable to taxation.



Name in full.



Occupation.



Residence.



Statement to be made by Government departments^ local authorities ^ persons, firms ^ companies^
banks, and societies employing officers, managers, travelers, clerks, foremen, workmeft, serv-
ants, and others in New Zealand, whether paid by salary, weekly wage, or otherwise.

List of persons in my service or employ during year ending 3xst March, 1 896.



Name in full.


In what capacity em-
ployed.


Place of residence.


Amount of pay received,

including salary, wages,

bonus, commissions, and

allowances, but excluding

house allowances.



































NoTS. — In the case of any person the total payment to whom does not exceed ;Ci^ ^ y^fur, ad entry need
not be made.

If there should not be sufficient space in any of the above forms, a sheet giving the required infcMination
may be attached.

Statement of gross income from business and deductions therefrom.

(NoTR. — This may be taken for twelve months ending at date of stock taking or annual balance nearest to

31st March.)

For the year ending , 189 .



Sales both for cash and on credit for twelve months ending at date of stock Uking
(include goods supplied for proprietor's own use and goods used in the business or
upon buildings, plants, fixtures, etc.)

Stock in hand at date of stock taking on expiry of the twelve months



Less: Stock in hand at the commencement of the twelve months

Purchases, etc., for twelve months ending at date of stock taking (at cost laid

down on the premises)

Labor and materials used in manufactures

(This should only appear in case of a manufacturing business.)
Other income from business, viz, commissions, etc., as follows :



Amount.

£



Total.



Gross income

Gross income should correspond with amount shown under head ' gross income
from employment or emolument."



••^•£



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LAND TAXATION AND LABOR LAWS IN NEW ZEALAND. 89



DBDUCnOKS FROM GROSS INCOME.

Salaries and wages (not to include any stuns drawn by proprietors or any sums claimed
nnder above heading " labor and materials ")

Rent (include only rent of premises or portion of premises used exclusively for the
purpose of the business), not to include rental value of buildings owned by proprietors
of the business „

Rates on business premises (not to include payments for land or income tax)

Fire insurance (on business premises and stock only) ,

Interest, exchange, and dbcounts allowed, less amounts received (not to include in-
terest on mortgages, except mortgages on premises used for business or employment).

Printing, stationery, advertising, stamps, and telegrams.

Traveling expenses, incurred in the business only.

Repairs or maintenance (not to include additions or improvements to property or plant).

Sundry petty expenses, incurred in the business only

Bad debts (to include those proved to be bad during the year and actually written off,
and no others) ^ »

Other items (to include deductions in respect of heads of income) :



Total deducticms

N. B. — Total deductions should correspond with amount shown under head "de-
ductions/'

Net income



Amount.



•^£,



Toul.



Land and Mortgage Returns.



All letters, &c., should be ad-
dressed " The Commissioner of
Taxes, Wellington," and not to
any name. Letten so addressed
go free by post.



*' THE LAND AND INCOME ASSESSMENT ACT, 189I."

In pursuance of the above act and of the r^ulations made thereunder, every owner of land
and every owner of mortgages.is required to fill up the following return as far as the same is
applicable to his particular case, and deliver the same at, or forward it by return post to, the

office of the commissioner of taxes, Wellington.

JOHN McGOWAN,

Commissioner of Taxes.

NoTB. — Any person failing or neglecting to furnish a rettim or any person making a false return is liable
to a penalty of not less than ^£5 nor more than £,xqo and to pay treble extra duty.

RETURN OF THE LAND AND MORTGAGES OP



% Name in full: .

^ Postal address : .

« Occupation: -.

"^ made in pursuance of ''the land and income assessment act, 1S91," and the regulations
t; thereunder, so far as respects all land owned by me, and all mortgages held by me, as at
X noon on the 31st day of March, 1896, according to the several particulars hereinafter set
^ forth and of deductions made at such date as are allowed by law.



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90 LAND TAXATION AND LABOR LAWS IN NEW ZEALAND.



Ordinary Tax,

Land owned by me (particulars follow) according to its unimproved value £,,

Mortgages of land held by me (particulars follow) according to the actual value
thereof to me as mortgagee, amounting to £

Total land and mortgages jf

Deduct amount due or owing by me on mortgage of above land (particulars follow) .. £

Balance £

The deduction by way of exemption allowed by law will be made in the tax office.

Graduated Tax.

Land owned by me, according to its unimproved value, included in the particu-
lars following jf.

I, the person making the foregoing return, do solemnly and sincerely declare that the same,
and the statements therein referred to or accompanying such return, contain true and acciuiUe
details of the several matters and things set forth, and in particular contain a true and ac-
curate account of all land in New Zealand owned by me as at noon on the 31st day of March,
1896, and of all mortgages of land in New Zealand held by me on the same date, and that
the mortgages for which I claim deduction are mortgages which I am legally entitled to de-
duct. And I make this declaration under the provisions of ** the land and income assess-
ment act, 1 89 1."

Dated this day of , 1896.

[Uiual signature :] .

NOTES.

In respect of properties under lease the owner and lessee will each be assessable upon the
value of his interest in the improved land.

Care should be taken to distinguish clearly between mortgages owing by and owing to
by placing them under their respective headings in the spaces provided for that purpose.

The name, occupation, and address of the owner should be correctly and clearly stated,
and the declaration in all cases signed and dated. Any change of address should be at once
notified to the department.

An exemption of ^500 is allowed where the value of the land, less improvements and
mortgages due upon such land plus mortgages due to the owner, does not exceed ^^1,500.
Between that sum and ;f 2,500 the jfsoo diminishes by £\ for every £2 the value of land
and mortgages rises. Beyond ;^2,5oo no exemption is allowed.

Particulars of money lent by me secured on registered mortgage and any amount owing to
me in respect of land sold on time or deferred payment.



Persons to whom the money is lent.


Amount of
mortgage.


Amount owing
on ^ I St March,
1896, not includ-
ing interest (the
actual value of


Name.


Occupation.


Address.


the mortgage to
be inserted).








£.


£.






































- ~ —





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Online LibraryUnited States. Dept. of Commerce and Labor United States. Bureau of Foreign CommerceConsular reports, Issues 196-199 → online text (page 14 of 82)