WHAT IS DEBENTURE TAX.

Taranaki Daily News, 30 July 1921, Page 6

WHAT IS DEBENTURE TAX.

Many investors do not fully realise the fact that 71- pel* cent, interest free of debenture, tax is a better return than 8 per cent, or 8A per cent subject to tax. The Government levies a. tax of 3<x in the £ on all debenture interest paid to the debenture holders. This sum is paid to the Government by the Company on behal'f of the debenture holders, and, if the debentures are not free of tax, deducted from the interest payment to the debenture holder. For instance, 8 per cent, debentures not free of tax will return £8 less 24s—£6 Ifls per cent, per annum. The 7J’per cent, debentures issued by Macky, Logan, Caldwell, LUI., are payable free of tax. That ifl, the Company will pay the Government the debenture tax on behalf of the debenture holder and will not deduct it from the interest payment; so that every debenture holder will receiv £7 10s in full per year for every £lOO invested. That this is the best proposition offering to the email investor to-day is proved by the wonderful response. Subscriptions continue to pour in at a great rate, so that there is every indication that Hie issue of £250.000 will soon be fully subscribed. £117,000 was subscribed in the first two weekfi, and at the time of ■writing the total reaches well. over £150,000. Intending subscribers should lose no time in securing a copy of the prospectus in which an application form will be found. Ask at any Branch of the Bank of New Zealand, any member of the Auckland or Wellington Stock Exchange, or any of the Company's brancheSr