Taxation of Investments

Dominion, Volume 29, Issue 198, 19 May 1936, Page 11

Taxation of Investments

si,-,—Wiil y.,u please throw some light ou the following question in the columns of your paper? I invested in some Savings Bank certificates in 1930, having a currency of live years. At that time this particular investment was free of income lax, and the emergency unemployment tax was not instituted till some considerable time later. If the interest is now subject to both taxes I would like to know on what basis an assessment is arrived at: (1) on income tax, (2) unemployment emergency tax. —I am, etc.. Wellington, May 6.

INo free-of-incoiue lax Post Office Savings Bank certificates were issued in 1930. '.l'lie interest obtained, from these certificates is assessed for income tax in the same way as any other income. So far as unemployment taxation is concerned the Interest is either assessable in the year in which the certificate matures, or it can by application be apportioned over tlie term bi the certificate, lit 1030 the Unemployment Act was out in force, but for the year ended March. 11131, and onwards the unemployment emergency charge would be assessed in the same way as it Is on income other than salary and wages.]