MUNICIPAL DEBENTURES.

Taranaki Daily News, 8 November 1920, Page 4

MUNICIPAL DEBENTURES.

INTERESTING STATEMENT. FROM COMMISSIONER OF TAXES. L yfni were .to be told that you could save up to 71 per cent of your income tax by investing your Capital in New Plymouth Borough Council short dated debentures at oj per cent, you would think you were being grossly mislead. Hilt it is true, as a perusal of the following correspondence between the New Plymouth Borough Councjl 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 income tax according to Mr. Massey ani the Commissioner of Taxes at rates ranging up to 8s !)d, Municipal and other local authorities are offering loans at 5 J per cent., which will be subject to taxation ranging up to & maximum of only 2s (Id. Commissioner's answer to question one: — 'lhe paragraph quoted correctly states the position." Question (2): Is the following statement correct?

If a man who is now in 79 (hi scale income tax assessment should derive all his income from Municipal deberi* tures he would, tinder the new Act, only pay the flat rate of 2s Od in the .€, whilst small men get refund excess tax. W Commissioner's answer to question -H two:— ' n ' s w#xira«a • M I Municipal Debentures taxpayers whose income from nil sources chargeable / with less rate than half-crown entitled to refund on that portion derived from such debentures. Taxpayers »-hose income from all sources under £3OO on production of declaratu that 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 Ler f ' Z T ° m tho Qener#l Meager of the New Plymouth Borough Council. Published by fcrran^emsa^