ALMOST FREE OF INCOME TAX.

Press, Volume LVI, Issue 16986, 8 November 1920, Page 8

ALMOST FREE OF INCOME TAX.

« If you were to be told you could save up to 71 per cent, of your income tas by investing your capital m New llymouth Borough Council short-dated debentures at 54 per cent, you would think you were being grossly misled. But it is true, as a perusal of the to 1lowing correspondence between the Plymouth Borougfh Council and th© Commissioner of' Taxes will amply demonstrate : — Question 1. Does tho following paragraph correctly, set out tho effect of tho Tecent legislation? "The next Government Loan is to bo issued v at 51 per cent, subject to income tax, according to Mr Massey and tho Commissioner of . Taxes, at rotes ranging up to 8s 9d. Municipal and other local authorities are offering loans at 5$ per cent., which will be subject to taxation ranging up to a maximum . of only 2s 6d." Commissioner's answer to Q neat ion 1: "The paragraph quoted -correctly states the position." Question 2. Is the following statement correct? "If a man "who is now in 7b 6d scale incomo tax assessment should derive all his income from Municipal Debentures, he would under tho now Act only pay the flat rate of 2s Gd in the £, whilst small men get refund excess tax." Commissioner's answer to Question

"'2s 6d in £1 is maximum on Municipal Debentures. Taxpayers whose income from all sources chargeable ■ with less rate than half-crown entitled to- refund on that portion derived from such debentures. Taxpayers whose income from all sources under £300 on production of declaration to that effect may be allowed payment in full." Invest in these Debentures whilst you have the chance. Pampihlets containing the fullest information may be obtained at any branch of the IJank of New Zealand or from tho General Manager of the New Plymouth. Borough Council, New Plymouth. 6