FINANCE REGULATIONS

Evening Star, Issue 23692, 27 September 1940, Page 4

FINANCE REGULATIONS

LOAN ENFORCEMENT PROVISION COMPULSORY LIABILITY [Per United Press Association.] WELLINGTON, September 26. Regulations amending tbo Finance Emergency Regulations, 1940, which were issued in June, wore published in to-night’s ‘ Gazette.’ One of the new regulations deals with fixed deposits payable in foreign currency, and requires the owner of every such fixed deposit to furnish to the Minister of Finance, or as ho directs, information and particulars thereof by October 10, 1010, or within 14 days after, the date on which he becomes the owner of a fixed deposit, whichever date is the later. The Minister of Finance (Hon. W. Nash) explained this evening that he had delegated his powers under Hus regulation to the Reserve Dank of New Zealand. Returns should accordingly be made to the Reserve Bank. The regulations were complementary to the existing regulations requiring the holders of foreign securities and foreign currency to make returns of such foreign securities and currency to the Reserve Bank.

Another of the new regulations amends a clause in the principal regulations, which states that it the Minister of Finance has reason to believe that any person has not subscribed in due proportion to his means to any war purposes loan the Minister, by notice to such person, may require him to subscribe for any specified amount to such war purposes loan.; The new amending regulation states that notice may be given by publication in the ‘ Gazette ’ to any specified person, or two or more spocmed persons, or to all persons of a specified class (such a ‘Gazette’notice being a notice to and binding on all persons affected by it), and such a notice may indicate the amount or the respective amounts required by notice to be subscribed. Where in any such notice the amounts are indicated by reference to a person’s income or income tax, the Reserve Bank, which acts as the Government’s agent in the issuing of prospectuses of any Government loans and receives applications for subscription thereto, will furnish the Commissioner of Taxes with statements of the persons who have subscribed. The Tax Department will then check such statements with the amount of income or of income tax payable by such person,, and indicate to the Minister to what extent any such person has failed to comply with the terms of the notice in the ‘ Gazette.’ Any certificate given by the Commissioner of Taxes as to the amount which any person is required to subscribe, pursuant to the basis set out in such 1 Gazette ’ notice, is to be conclusive evidence of such person’s compulsory liability to subscribe for such war loan.

Another of the amending regulations is designed to remove a difficulty confronting trustee savings banks who Tiiav wish to contribute to wur louns. Under a proviso tt section 33 of the Savings Banks Act, 1908; a savings bank is prohibited from investing more thdn 90 per cent, of its total funds. During the last war this limitation was removed in so far as investments in war loans were concerned, and the same course is now to be followed. Other amendments are purely machinery amendments of the existing regulations.