DEATH DUTIES INTEREST

Greymouth Evening Star, 14 September 1932, Page 10

DEATH DUTIES INTEREST

DETAILS OF REDUCTION.

[per pbess association.]

WELLINGTON, September 13

A reduction of interest on unpaid death duties was authorised by an Order-in-Council issued last week. Under the terms of the Death Duties Act, 1921, death duties are made payable on assessment, or if there is no assessment within six months from 'date of death, then at the expiration of six months. If the full amount of the duty is not paid three months after the notice of assessment, a further five per cent, duty is added, and is deemed part of the estate and succession duties. The rate was originally 10 per cent. Under the 1921 Act, interest is payable also on all death duties not paid within three months after death. Thus the interest runs from the fourth month after death and is collectable in the same way as if it was additional duty. Interest- is also payable on the penalty duty described above as from the date on which this duty is levied. The rate of interest on death duties not paid within three months after death was-fixed at 6 per cent, by the 1921 Act. Under Section 61 of the Finance Act, 1932, the Government took power to fix the rate of this interest at such a lower rate as the Governor-General by Order-in-Council might determine. The Gazette notice of September 8 has reduced the rate to five per cent, from the fourth month after death and five and a-half per cent, from the thirteenth month. The penalty duty of five per cent, still stands and is an addition to this interest charge.