ALMOST FREE OF INCOME TAX.

Press, Volume LVI, Issue 16988, 10 November 1920, Page 10

ALMOST FREE OF INCOME TAX.

*• If you were to be told you could eaye up to 71 per cent, of your income tax by investing »your capital m Mew Plymouth Borough Council short-dated debentures at oi per cent, you would , think you were being grossly misled. But it is true, as a perusal of the foii lowing correspondence between the Rw Plvmouth Borough Council and the ' Commissioner of Taxes will amply demonstrate :— Question 1. 3>oes the following pantgraph correctly set out the effect, of the Tecent legislation ? "The next * Government Loan is to be issued at 54 per cent, subject to income tax, according to Mr \lassey and the Commissioner of ► Taxes, at rates ranging up to 8s 9d. Municipal and other local authorities. fl re 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 Question 1: "The paragraph quoted correctly states the position. ' Question 2. Is the following statement correct? "If a man who is now in 7s 6d scale income tax assessment should derive all his income from Municipal Debentures, he would under the new Act only pay the flat rat® of 2s 6d in the £, \vhilst 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 dhaTgeable 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. Pamphlets containing the fullest information may be obtained at any branch of the Bank of New Zealand or from the General Manager of the New Plymouth Borough Council, New Plymouth. 6