DEBENTURE TAX.

Auckland Star, Volume LII, Issue 60, 11 March 1921, Page 8

DEBENTURE TAX.

THE NEW PROPOSALS. (B.v XeleßTaph.—Own Correspondent.> HAMILTON, this day. The effect which the new income tax will have upon holders of debenture:' was set out in a letter to the Waikato • liospital Board yesterday by the Co-ui-missioner of Taxes. This stated that the tax on debenture-interest is deductible I from the interest coupons when these ■ are presented for payment, at the rate of 2, t> in the £. Debenture holders, whose income from all sources docs not exceed LliOO. upon making a declaration to that effect, are, however, entitled to receive the interest without deduction of tax. Societies, trusts, institution!!, and other bodies, the income of which is I totally exempt from tax under secti'ui |S4 of the Laud and Income Tax Act. j li'lti, are also entitled to receive the 'interest without deduction, upon making n declaration that they are exempt. In the case of inscribed debenture stocks, ! holders may iwludc the interest on their i individual returns, instead of having the • tax deducted. The maximum Tate at which such interest will be assessed will he 2, (! in the £. Refund win \be made to any debenture-holder whose j total assessable ineoine from all sources. !as shown in his return, is of such amount as will carry a rate of less than ■2 l> in the f. Any debenture-holder entitled to a refund" may, if he so desires, by arrangement with the local \ authority, include the debenture-interest in his return of income. ] The secretary pointed out that the i Hoard hail no debentures, so was not therefore affected by the legislation.