H—9a

1948 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, 1948

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 31st March, 1948, 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 charge of Is. 6d. in the pound on salaries and wages and also on other income. During the year there were two important changes in the law relating to the liability for social security contribution. Firstly, section 15 of the Finance Act, 1947, which makes provision for the collection of social security charge on income derived by persons who are absent from New Zealand in the service of the New Zealand Government, and secondly, section 9 of the Finance Act (No. 2), 1947, in terms of which I am empowered to exempt from social security charge allowances received by any person which constitute a reimbursement of expenditure exclusively incurred in the production of his assessable income. The work of decentralizing the Department, including the sections dealing with the collection of the social security charge, was completed during the year with the exception of the Hamilton Branch, which, owing to accommodation, difficulties in Hamilton, is still located in Wellington. The Department is again indebted to the Post and Telegraph Department for continuing to give its valuable assistance in acting as agent in the collection of the social security charge.