WAR LOAN
MR NASH REPLIES STOCK AND INCOME TAX METHOD OF PAYMENT By Telpgrrarl*.— Pre-s \> a “at >r WELLINGTON, Thursday Certain points in connection with the Government’s interest-free War Loan were made clear by the Hon. W. Nash, Minister of Finance, in a reply received by the Associated Chambers of Commerce to representations made through that body by a joint taxation committee composed of representatives of the Associated Chambers, Farmers’ Union, Manufacturers’ Federation, and Federation of Drapers, Clothiers, and Boot Retailers. In respect to the valuation of trading stock for income-tax purposes the Minister advises that any increase in income for the year ended March 31, 1939. brought about by the inclusion, by the Commissioner of Taxes, of an amount in respect to a stock reserve created in any other
year, will be ignored in computing such taxpayer's income for the year ended March 31, 1939, and tax will be computed as if the amount had not been included in the income. The stock reserve, therefore, will not operate to increase the liability of a taxpayer to contribute to the War Loan. Spreading of Payment's Regarding the spreading of payment of installations of the loan, the Minister states that the provisions for the payment by instalments in October and December, 1940, and March, 1941, was deliberately adopted by the Government to spread the payments as far as possible for the current financial year “This War Loan represents the loan requirements essential for war purposes during this financial year.” Mr Nash states, “and I think the Chambers of Commerce will appreciate that to spread the payments over a longer term will not be possible in the circumstances.” Dealing with the gifts made to the Government for war purposes, Mr Nash said that under the prospectus for the loan, provision was made for taxpayers to convert their free-of-interest loans already paid to the Government for war purposes, to stock in the War Loan. “I agree that a contribution made by a person, who has donated money to the Government as an outright gift, is greater than that effected by a free-of-interest loan for a limited term. The Government will be glad to give consideration to any cases where persons have made gifts.” Appeals Can Be Lodged With respect to hardship on taxpayers the Minister stated that
similar circumstances apply in re- i gard to this point and all these j can be dealt with from the point of j view of hardship on appeal. Concerning non-resident persons 1 and companies Mr Nash replied that , they are liable to payment for income tax in respect to income derived in New Zealand and this liability to contribute to the loan is based entirely on their income tax. “The income is earned by the use of assets and investments in New Zealand, which participate in the protection afforded by means of this war loan and I cannot see any reason why they should be less liable to contribute than similar assets and investments owned by New Zealanders. In exceptonal cases an appeal can be made and particular circumstances can then be taken into account.” Mr Nash added that the Government appreciated the desire : of the Associated Chambers to cooperate with it and assist in having these provisions framed as equitably and efficiently as possible. EXCHANGE QUOTATION PROCEDURE OUTLINED (By Telegraph.—Press Association) WELLINGTON, Thursday The Stock Exchange Association of New Zealand advises that on Monday next, all exchanges will be in a position to quote the new war loan, maturing on October 1, 1953. As certificates of title will not be issued until after the final instalment date, March 25, 1941, transfers will be accepted as “ good delivery ” when accompanied by the allotment letter, which will be full evidence of the j seller’s holding and the amount paid t up. On registration of transfers the Reserve Bank will issue fresh allot- j ment letters as temporary title and ; these can again be traded in until I March 25, 1941. On and after that j date allotment letters must be sur- ! rendered and certificates of title ob- | tained to support transfers.
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Waikato Times, Volume 127, Issue 21247, 18 October 1940, Page 7
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684WAR LOAN Waikato Times, Volume 127, Issue 21247, 18 October 1940, Page 7
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