ALMOST FREE OF INCOME TAX.

Press, Volume LVI, Issue 16987, 9 November 1920, Page 8

ALMOST FREE OF INCOME TAX.

—+- —t— If you were to bo told you could save up to 71 per cent, of your income tox by investing your capital in New Plymouth Borough Council short-dated debentures at 6J per cent, you would think you were being grossly misled. But it ia true, aa a perusal,of the following correspondence between the New Plymouth Borough Council and the CfcenmisKoner of Taxes will amply demonstrate !-— Question 1. Does the following paragraph correctly set out the effect of tho recent legislation P ".. "Tho next Government Loan is to be issued at 5J per cent, subject 'to income tax, according to Mr Massey and the Commissioner of Taxes, at ratee Tanging up to 8s 9d. Municipal and othor local authorities are offering loans at' 5 J per cent.', -which will be subject tq taxation Tanging up to. a, maximum, of only 2s 6d> Commissioner's answer to Question Is • "Tho paragraph quoted correctly statee the position. Question 2. Is the following statement correct? 11 ' If a man tvho is now in 7s 6d scale income tax assessment should derive all his income from Municipal Debentures, he would under the now Act only the flat rate of 2s 6d in the £, whilst small men get refund excess tax." Commissioner's answer to Question 2: "2s 6d in £1 is maximum on Municipal Debentures. Taxpayers whose income from all sources c'hnrgeable with less rate than half-crown enI titled 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 aJiovred payment in full." Invest in these Dobontures whilst you. have tho chance. Pamphlots containing the fullest information may be obtained at any branch of the Bank of Mew Zealand or from the General Manager of tho New Plymouth Borough Council, New Plymouth. 6