EARLY DEMAND.

Auckland Star, Volume LXX, Issue 193, 17 August 1939, Page 12

EARLY DEMAND.

TAX CERTIFICATES.

SAVING OF 2 PER CENT. SPREADING THE PAYMENTS. In view of the early issue of income tax assessments this year, it is. expected that there will be a larger demand than in the past for Post Office Savings Bank certificates, which enable a saving to 2 per cent to be made and also assist in spreading the payments over a period of months. The later issue of the assessments in previous years made the certificates of little value to the average taxpayer. "There is already a demand for the certificates," said an official at the Auckland Chief Post Office to-day, "and they are going off steadily. The demand is never very urgent, but as it has started earlier this year the total sales will probably b$ larger,"

It was stated that the certificates had arrived shortly before the presentation of the Budget estimates in Parliament, and a few had been sold before the end of Jul v.

"Apparently the taxpayers smelt a rat," remarked the official with a Binile, but the real explanation, he suggested, was that most people had a rough idea of the amount of the tax they would be called upon to pay and began to make provision accordingly- .The. .demand was chiefly from) private ;"indivicluals, but companies also fought the" certificates to some extent in' the third quarter of the year when they had funds not required for trading purposes.

Inquiries in professional circles revealed that, although the saving of 2 per cent was smaller than could be obtained bv depositing money in the savings bank, the certificates were more convenient for some people. Besides, if the amount to the credit of a depositor in the savings bank had reached the limit on which interest was paid, the certificates represented a definite saving. Another course open was to pay by instalment direct to the Department and ohtaln 2 per cent off.

In calculating the concession of 2 per cent the Department makes allowance only for complete months, no to the end of January. As the last d>>v for paying •noome tax is usua'lv about the end ofFebruary, the actual saving works out ■>t somewhat less than 2 per cent, and diminishes as the date of the tax' demand approaches.