No Chance of Dodging War Loan

Manawatu Times, Volume 65, Issue 229, 27 September 1940, Page 6

No Chance of Dodging War Loan

Taxation Department as Detective NEW REGULATIONS ANNOUNCED Per Press Association. WELLINGTON, Bept. 27. Regulations amending the Finance Emergency Regulations, 3940, issued in June, were published in to-night’s Gazette. One of the new regulations deals with fixed deposits .payable in foreign currency and requires the owner of every such fixed deposit to furnish to tho Minister of Finance, or as he directs, information and particulars thereof by October 35, 3940, or within 14 days after the datq on which ho becomes the owner of a fixed deposit which ever date is later. Tho Minister of Finance (Hon. W. Nash) explained this evening that he had delegated his powers under this regulation to the Reserve Bank of New Zealand. The returns should accordingly b© made to the Reserve Bank. The regulation was complementary to the existing regulations requiring holders of foreign securities and foreign currency to make returns of such foreign securities and currency to the Reserve Bank.

Another of tho new regulations amends the clause in the principal regulations which states that if the Minister of Finance has reason to believe that any person has not subscribed in due proportion to his means to any war purposes loan, the Minister, by notice to such person, may require him to subscribe for any specified amount to such war purposes loan. Tho new amending regulation states that notice may be given by publication in the Gazette to any specified person or to two or more specified persons or to all persons of a specified class (such Gazette notice being a notice to and binding on all persons affected by it), and such notice may indicate the amount or the respective amounts required by the notice to be subscribed. Where in any such notice the amounts are indicated by reference to a person’s income or income-tax, t<ho Reserve Bank, which acts as the Government’s agent in issuing the prospectus of any Government loans and receives applications for subscribers thereto, will furnish the Commissioner of Taxes with the statements of persons who have subscribed. The Tax Department will then check such statements with the amount of income or of income tax payable by such person and indicate to the Minister to what extent any such person has failed to comply with the terms of the notice in 4 the Gazette. Any certificate given by tho Commissioner of Taxes as to the amount which any person is required pursuant to the basis set out in such Gazette notice to subscribe is to be conclusive evidence of such person *s compulsory liability to subscribe for such a war loan.

Another of the amending regulations is designed to remove the difficulty confronting trustees of saving* banks who may wish to contribute to the war loans. Under proviso to section 33 of the Savings Banks Act, 3908, a savings bank is prohibited from investing more than 90 per cent, of its total funds. During the last war this limitation was removed insofar as investments in war loans were concerned and the same course is now to bo followed. The other amendments are purely machinery amendments of the existing regulations.