TAXATION POSITION
Interest-Free Loans To Government
If a firm makes an interest-free loan to the Government when it is in credit, that in no way affects the deductibility for income tax purposes of overdraft charges to the firm when it is in debit, provided such overdraft is incurred for the purposes of the conduct of the business. This advice was given the Associated Chambers of Commerce by the Commissioner of Taxes and in turn given to the M’nllington Chamber of Commerce at its council meeting last night. It was stated that the commissioner was investigating the position of firms which, in order to make an interestfree loan available to the Government, would have to borrow on overdraft, to make that loan. The present position under the law was that overdraft charges were not deductible for income tax purposes. This matter was being investigated by the department to see if it was possible to make any amendment to the law on the subject.
Permanent link to this item
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https://paperspast.natlib.govt.nz/newspapers/DOM19400508.2.34
Bibliographic details
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Dominion, Volume 33, Issue 190, 8 May 1940, Page 6
Word count
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162TAXATION POSITION Dominion, Volume 33, Issue 190, 8 May 1940, Page 6
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