"INGENIOUS MOVE"

Auckland Star, Volume LXXI, Issue 206, 30 August 1940, Page 3

"INGENIOUS MOVE"

TAX COLLECTION.

SAVINGS BONDS INCOME.

WELLINGTON, this d*y.

"This looks to me to be an ingenious way of collecting taxation ahead," said Mr. Coates (Opposition, Kaipara), in the House of Representatives to-day, when discussing the proposal to collect in advance from purchasers of national savings bonds the national security tax and the social security charge on income from the bond during its currency.

Mr. Coates pointed out that on a 3 per cent bond for 10 years the purchaser would hare to pay £3 in theee two taxes.

The Minister of Finance, Mr. Xash, said that the bonds would be for five years.

Mr. Coates: Well it is the same Gordon It is taxed five veers before it is earned.

The Minister of Industries and Commerce, Mr. Sullivan, interjected to remark that ingenuity seemed to be a characteristic of Ministers of Finance.

Mr. Kaeh assured Mr. Coates that if it transpired that tax had been overpaid adjustments would be made.

Mr. Coates pointed out that the whole income from a 10-year bond for the first year was paid in taxation. "The Government collects the taxation well ahead." he added. "It is one way of getting your hands on the money. There is also a principle involved that money invested has already paid taxation, and now it has to pay it again."—(Parliamentary Reporter).