SAVINGS BONDS
PAYMENT OF TAXATION
"This looks to me to be an ingenious way of collecting taxation ahead," said the Rt. Hon. J. G. Coates (National, Kaipara) in the House of Representatives, today, when discussing the proposal to collect in advance from purchasers of national savings bonds the national security and social security charge on the income from the bond during its currency. Mr. Coates pointed out that on a 3 per cent, bond for ten years the purchaser would have to pay £3 in those two taxes. The Minister of Finance (the Hon. W. Nash) said that the bonds would be for five years. Mr. Coates: Well, it is the same. Mr. E. B. K. Gordon (National, | Rangitikei): It is taxed five years before it is earned. The Minister of Industries and Commerce (the Hon. D. G. Sullivan) interjected to remark that ingenuity seemed to be a characteristic of Ministers of Finance. Mr. Nash 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 ten-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."
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https://paperspast.natlib.govt.nz/newspapers/EP19400830.2.103
Bibliographic details
Evening Post, Volume CXXX, Issue 53, 30 August 1940, Page 9
Word Count
232SAVINGS BONDS Evening Post, Volume CXXX, Issue 53, 30 August 1940, Page 9
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