Act Repealed Latest version as at 04 September 1950 (as enacted) | 1950 No 22

Land and Income Tax Amendment Act 1950

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Increasing special exemption from £500 to £1,000.

Income Tax

Amending basic rates so as to abolish additional tax on unearned income.

FIRST SCHEDULE New Part A of Schedule to the Land and Income Tax Amendment Act, 1940

SECOND SCHEDULE Consequential Amendments

Land and Income Tax Amendment Act 1950

Public Act		1950 No 22
Date of assent		4 September 1950

	Title
1	Short Title.
2	Application of Act.
	Land Tax
3	Increasing special exemption from £500 to £1,000.
	Income Tax
4	Amending basic rates so as to abolish additional tax on unearned income.
	FIRST SCHEDULE New Part A of Schedule to the Land and Income Tax Amendment Act, 1940
	SECOND SCHEDULE Consequential Amendments

An Act to Amend the Land and Income Tax Act, 1923.

BE IT ENACTED by the General Assembly of New Zealand in Parliament assembled, and by the authority of the same, as follows:—

1 Short Title.

This Act may be cited as the Land and Income Tax Amendment Act, 1950, and shall be read together with and deemed part of the Land and Income Tax Act, 1923 (hereinafter referred to as the principal Act).

2 Application of Act.

This Act shall apply with respect to the tax for the year of assessment that commenced on the first day of April, nineteen hundred and fifty, and for every subsequent year.

Land Tax

3 Increasing special exemption from £500 to £1,000.

Section forty-nine of the principal Act is hereby amended by repealing paragraphs (a) and (b) of subsection one, and substituting the following paragraphs:—

“(a)

Where that value does not exceed fifteen hundred pounds, a deduction of one thousand pounds:

“(b)

Where that value exceeds fifteen hundred pounds, a deduction of one thousand pounds diminished at the rate of one pound for every pound of that excess, so as to leave no deduction when that value amounts to or exceeds two thousand five hundred pounds.”

Income Tax

4 Amending basic rates so as to abolish additional tax on unearned income.

(1)

The Schedule to the Land and Income Tax Amendment Act, 1940, is hereby amended by repealing Part A, and substituting the Part A set out in the First Schedule to this Act.

1940, No. 3

(2)

The enactments specified in the Second Schedule to this Act are hereby consequentially amended in the manner indicated in that Schedule.

SCHEDULES

FIRST SCHEDULE New Part A of Schedule to the Land and Income Tax Amendment Act, 1940

Section 4(1)

“Part A

“Interpretation

“1

For the purposes of this Schedule,—

“‘Taxable income’ means income on which income tax is payable:

“The effective rate of tax for any income shall be ascertained by computing tax on that income in accordance with the rates of tax specified in Part B of this Schedule and dividing the tax so computed by the number of pounds included in that income.

“Debentures Issued by Companies and Local and Public Authorities

“2

On income assessable under subsection (3) of section 116 or subsection (3) of section 118 of the principal Act, the basic rate of income tax for every £1 of the taxable income shall be as follows:—

“(a)

Where the income has been derived from debentures issued by a company on terms providing for the payment of income tax by the company, as provided in section 171 of the principal Act, the basic rate shall be 8s. 8d.

“(b)

In every other case, the basic rate shall be 12s.

“Companies and Public Authorities

“3

On all income not included within clause 2 of this Schedule the basic rate of income tax for every £1 of the taxable income shall, in the case of companies and public authorities, be as follows:—

“(a)

Where the taxable income does not exceed £6,300, the basic rate shall be 2s. 6d. increased by 1/100 d. for every £1 of the taxable income.

“(b)

Where the taxable income exceeds £6,300, the basic rate shall be 7s. 9d., increased by 1/150d. for every £1 of the taxable income in excess of £6,300, but so as not to exceed in any case the rate of 8s. 8d. in the £1

“Other Taxpayers

“4

“(1)

On all income not included within clause 2 of this Schedule the basic rates of income tax shall, in the case of all taxpayers other than companies and public authorities, be as provided in this clause.

“(2)

Where the total income derived by the taxpayer during the income year did not include any non-assessable income to which section 6 of the Land and Income Tax Amendment Act, 1931, applies, the basic rate for every £1 of the taxable income shall be a rate equal to the effective rate of tax for the taxable income.

“(3)

Where the total income derived by the taxpayer during the income year included non-assessable income to which section 6 of the Land and Income Tax Amendment Act, 1931, applies, then, notwithstanding anything to the contrary in that section, the basic rate for every £1 of the taxable income shall be ascertained by computing the amount by which tax at the effective rate on a taxable income equal in amount to the total of the taxable income and of the non-assessable income exceeds tax at the effective rate on a taxable income equal in amount to the non-assessable income, and dividing the amount of that excess by the number of pounds included in the taxable income.”

SECOND SCHEDULE Consequential Amendments

Section 4(2)

Title of Enactment.	Number of Section Affected.	Nature of Amendment.
1923, No. 21—
The Land and Income Tax Act, 1923	Section 73	By repealing subsection (3).
(Reprint of Statutes, Vol. VII, p. 299)	Section 79	By repealing subsection (2).
	Section 81 (as amended by section 18 of the Land and Income Tax Amendment Act, 1945)	By repealing paragraphs (b) and (c) of the second proviso to subsection (3), and substituting the following paragraph:— “(b) Where, if a profit had been made as aforesaid, the amount of the profit would have been assessable income, the amount of the loss carried forward to any year shall be deducted from or set off against the taxpayer’s assessable income for that year so far as that income extends.”
1932–33, No. 40—
The Land and Income Tax Amendment Act, 1932–33	Section 2	By repealing this section.
1939, No. 34—
The Land and Income Tax Amendment Act, 1939	Section 23	By omitting from paragraph (i) of subsection (1) the words “and that portion of any proprietary income that is deemed to be assessable income shall, if derived from an investment company, be deemed to be unearned income of the shareholder, and in all other cases shall be deemed to be earned income of the shareholder”; by repealing paragraph (j) of that subsection.
1942, No. 2—
The Finance Act, 1942	Section 5	By repealing this section.
1943, No. 2—
The Finance Act, 1943	Section 3	By repealing subsection (5).
1944, No. 28—
The Land and Income Tax Amendment Act, 1944 1945, No. 37—	Section 6	By repealing subsection (9).
The Land and Income Tax Amendment Act, 1945	Section 11	By omitting from subsection (1) the words “Every such sum shall be deemed to be earned income”.

Land and Income Tax Amendment Act 1950