WAR LOAN

Wairarapa Times-Age, 19 October 1940, Page 9

WAR LOAN

MINIMUM SUBSCRIPTION REQUIREMENTS FURTHER INFORMATION GIVEN BY MINISTER. LIABILITY OF INDIVIDUALS & COMPANIES. (By Telegraph—Press Association.) WELLINGTON. This Day. A notice giving legal effect to the minimum subscription requirements in connection with the war loan is given in this week's Gazette. The general scope of the compulsory provisions as now set out in the notice was explained some time ago by the Minister of Finance, Mr Nash, who has given the following additional information in relation to the matter: — The legal liability of individuals and of companies to subscribe to the loan is determined by reference to the income tax (including the 15 per cent war addition) payable by them in February last. In the case of individuals, the amount of the minimum subscription is found by ascertaining the multiple of £lO nearest to the amount of the income tax payable last February, and deducting £5O; in the case of companies the same procedure is followed, but a deduction of £7O is allowed. Those individuals and companies who, during the year ended March 31, 1939, received income (other than dividends from New Zealand companies) which was exempt from income tax. but on which they were liable to pay social security charge must, for the purpose of ascertaining their minimum subscription, compute their liability as though this exempt income had been liable for income tax. If full particulars are supplied, the Commissioner of Taxes will be pleased to advise anyone in doubt of the amount of his liability under the notice. APPEAL PERIODS. The notice requires subscription to be made not later than November 8. 1940. Where amounts have already been subscribed to the loan, these are. of course, taken into account in computing liability under the notice. Provision is made enabling appeal for relief from liability to subscribe to be made to the Minister of Finance in those cases where the taxpayers affected consider that compliance with the notice would impose undue hardship; such appeals should be made in writing not later than November 8, 1940. and should be forwarded in the first instance to the Secretary to the Treasury. The liability to contribute extends to non-resident companies deriving income from New Zealand as well as to resident companies, and also to persons who act as trustees or agents for beneficiaries or principals whether in New Zealand or abroad. Trustees and agents are obliged to meet the liability of the beneficiaries or principals concerned out of the funds of those beneficiaries or principals which are now held by the trustees or agents, or which may come into their hands in the future. The obligation in these cases is a joint and several liability with the beneficiary or principal concerned and is of course satisfied by the making of an appropriate subscription by that beneficiary or principal. PERMITTED ADJUSTMENTS. Special provision is made by the notice for three particular classes of taxpayers: First, taxpayers in business whose incomes were increased in 1939 by the inclusion of stock reserves ere-' ated in gome other, years may compute their obligation without regard to the increase in tax occasioned by the in-' elusion of the amount of the stock reserve. Secondly, an appropriate adjustment may be made in those cases where a return of income made in 1939 included income derived during a period greater than a year. And thinly, as the war loan stock is available for payment of death duty, the personal representatives of deceased persons who, during their lifetime, derived income during the year ended March 31. 1939, are required to subscribe only the amounts for which the deceased person would have been liable had he lived, less the amount of the death duty payable in respect of the estate. As already mentioned, the notice appears in the current issue of the Gazette: for the convenience of those concerned, loose copies of the notice have been printed and may be obtained from the Government Printer at a cost of one penny per copy. Applications to take up stock may still be made to the Reserve Bank, trading banks, members of a Stock Exchange or other offices mentioned in the prospectus.