LAND AND INCOME TAX DEPARTMENT. REPORT OF THE COMMISSIONER OF TAXES UPON THE ADMINISTRATION OF PART IV OF THE SOCIAL SECURITY ACT, 1938, FOR THE TWELVE MONTHS ENDED 31st MARCH, 1942.

Appendix to the Journals of the House of Representatives, 1942 Session I, H-09a

H.—9a.

194-2. NEW ZEALAND.

LAND AND INCOME TAX DEPARTMENT. REPORT OF THE COMMISSIONER OF TAXES UPON THE ADMINISTRATION OF PART IV OF THE SOCIAL SECURITY ACT, 1938, FOR THE TWELVE MONTHS ENDED 31st MARCH, 1942.

Presented to both Houses of the General Assembly pursuant to the Provisions of the Social Security Act, 1938.

REPORT.

I have the honour to present herewith a report upon operations carried out by the Land and Income Tax Department during the financial year ended the 31st March, 1942, in the administration of the provisions of Part IV of the Social Security Act, 1938, relating to the assessment, collection, and recovery of the social security contribution, consisting of— (a) A registration fee ; and (b) A charge of Is. in the pound on salaries and wages, and also on other income. All income is subject to a further charge for national security tax, imposed by Part II of the Finance Act, 1940, but figures relating to collections under that Act are not included in this report. The Department's activities throughout the year have been carried out under increasingly difficult conditions arising through an increased volume of work and the release of a considerable number of experienced members of the staff for service with the armed forces. During the year a machine accounting system was installed in connection with the social security charge and is operating efficiently. . The Post and Telegraph Department continued its valuable assistance as agent in the collection of the registration fee and of the social security charge, and in dealing with various other requirements incidental thereto. The result of the Department's operations during the year is shown by statements (a), (b), and (c) hereunder. (a) Statement showing Number of Persons registered under the Social Security Act, 1938, and Exemptions from Payment of the Registration Fee. (i) Registrations. Males (twenty years of age and over) .. .. .. 530,377 Youths (males sixteen to twenty years of age) .. .. 67,898 598,275 Females .. .. .. .. .. 604,754 Total number of live registrations as at 31st March, 1942 .. 1,203,029

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(ii) Exemptions from Payment of the Registration Fee granted during the Year ended 31st March, 1942, in respect of Instalments due for that Year.

(iii) Exemptions from Payment of the Registration Fee granted during the Year ended 31st March, 1942 in respect of Instalments due for Years ended 31st March, 1940 and 1941.

Summary : Total number of instalments exempted under (ii) and (iii.) above, 181,807 at ss. each, amount involved, £45,451 15s. (does not include exemptions granted to members of His Majesty's forces). (b) Statement op Receipts for the Year ended 31st March, 1942. £ s. d. £ s. d. Registration fee .. .. .. .. . . 605,222 9 7 Registration fee penalties .. .. .. 25,770167 630,993 6 2 Social security charge on income (Is. in the pound)— Charge on salaries and wages paid by cash .. 4,210,891 1 9 Charge on salaries and wages paid by stamps .. 2,277,800 7 0 f . 6,488,691 8 9 Charge on income other than salary or wages .. 3,943,622 10 5 10,432,313 19 2 Total .. .. .. .. .. .. .. £11,063,307 5 4 (c) Statement op Exemptions granted, on the Grounds op Hardship, prom Payment of' the Charge on Income. Number of exemptions granted (in whole or in part) . , . . 1,909 Amount of social security charge remitted .. .. £6,910 os. Bd. J. M. Park, Commissioner of Taxes. Approximate Cost of Paper.—Preparation, not given ; printing (449 copies), £4.

By Authority: E. V. PAUL, Government Printer, Wellington.—l 942.

Price. 3d.~\

Number of Persons granted Exemption. May, 1941, Instalment;:: Males, Females, Males Twenty Yearg and oveI of On account of ana Youths. InBtal . Maleq ments rfiviSl, m. f „, August, November, February, exempted. viZl and Females.t Youths, t Ma i inii 1»«. In- 1941, In- 1942, Inover» stalment. stalment. stalment. (a) War pensioners (1 9 1 4- 1 9 2,113 3 .. 2,116 1,931 1,796 1,236 7,079 war) : Total disablement (b) Beneficiaries (monetary bene- 25,967 31,166 125 57,258 23,838 20,593 14,756. 116,445 fits), Social Security Fund (c) Unemployed, i n m a t e s of 2,140 1,295 142 3,577 1,833 1,610 883 7,903 hospitals, prisons, &c. (d) Students and members of 1,018 6,104 4,205 11,327 883 671 350 13,231 religious bodies (e) Members of His Majesty's } J t t { t t t forces (/) Hardship .. .. 1,083 1,416 30 2,529 1,021 749 95 4,394 Totals .. .. 32,321 39,984 4,502 76,807 29,506 25,419 17,320 149,052 {Figures not for publication.

Number of Persons granted Exemption. May, 1939, and May,1940 laments : Males, Ma)es Twfmty Year8 ftnd over On account of Females, and youths. InstalTotal Mflv August, November, February, ments Si ?S'<! f™, 1939, and 1939, and 1940, and exempted. Years and Youths.f May ;' 1M0 _ August, November, February, I"»talments atalli ; ata ig; ent3 ', (a) War pensioners (19 14- 1 9 76 .. .. 76 288 492 828 1,684 war) : Total disablement (b) Beneficiaries (monetary bene- 1,198 2,221 4 3,423 4,187 7,084 10,680 25,374 fits), Social Security Fund (c) Unemployed, inmates of 247 191 23 461 344 582 896 2,283 hospitals, prisons, &c. (d) Students and members of 14 409 124 547 70 134 186 937 religious bodies (e) Members of His Majesty's forces (/) Hardship .. .. 349 276 9 634 501 640 702 2,477 Totals .. .. 1,884 3,097 160 5,141 5,390 8,932 13,292 32,755 * Males twenty years of age and over are liable for quarterly instalments of 5s. each, payable in February, May, August , and November each year. t Females and youths are liable for 5s. annually, payable in May.