MUNICIPAL DEBENTURES.

Taranaki Daily News, 6 November 1920, Page 4

MUNICIPAL DEBENTURES.

INTERESTING STATEMENT FROM COMMISSIONER OF TAXES If yon were 'to be tokl that yon could save up to 71 per cent of your income tax by investing your Capital in New Plymouth Borough Council short dated debentures at o\ per cent you would think you were being grossly mislead. But it is true, as a perußal of the following correspondence between the New Plymouth Borough Council and the Commissioner of Taxes will amply demonstrate:— Question (1): Does the following, paragraph correctly set out the effect of the recent legislation? The next Government Loan is to be issued at 5J per cent subject .to in. come tax according to Mr. Massey and the Commissioner of Taxes at rates ranging up to 8s fid Municipal and other' local authorities are offering loans at 5J per cent., which' will be subject, to taxation ranging up to a maximum of only 2s Cd. Commissioner's answer to question one:— "The paragraph quoted correctly states the position." Question (•>): Is the following statfc men! correct? If a man who is now in 7a 6d scale income tax assessment should derive all his income from Municipal debentures ho would, under the new Act,' only pay the flat rate of 2a Od in the :£, whilst small men get refund excess tux.

| Commissioner's answer to question two:— "2s Cd in £1 is maximum on Municipal Debentures taxpayers whose income from all sources chargeable with less ra'ta than half-crown entitled to refund on that portion derived from such debentures, Taxpayers whose income from all sources under ;C10() on production of declaration to that effeot 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.—Published by arrangement.