ALMOST FREE OF INCOME TAX

New Zealand Herald, Volume LVII, Issue 17622, 8 November 1920, Page 8

ALMOST FREE OF INCOME TAX

(Published by Arrangement.)

I If you were to be told you could save :up to 71 per cent, of your income tax by investing your -capital in Njjw Plymouth Borough Council short-dated debentures at S£ per cent., you would think you were being grossly mislead. But it is true,, as a perusal of the following correspondence .between the New Plymouth Borough Council and trie Commissioner of Taxes ■ will amply demonstrate: — > Question 1. Does the following paragraph correctly set out the effect of the recent legislation? "The next Government Loan is to be issued at 5£ per cent,, subject to in- . come tax, according to Mr. Massey . and the Commissioner of Taxes, at ' rates ranging up to 8s 9d. * Municipal and other local authorities are offering loans at 5£ per cent., .which will be subject to taxation ranging up to a maximum of only 2s 6d." Commissioner's answer to Question 1. " The paragraph quoted, correctly states the position." Question 2. It the following statement correct-? " If a man who is now in 7s 6d scale income tax assessment should' derive all his income from municipal debentures lie would under the new Act only pay the flat' rate of 2s 6d in the £, whilst small men get refund excess tax" Commissioner's answer to Question 2. "2s 6d in £ is maximum on municipal debenutres. Taxpayers whose income from all sources chargeable with less rate than ; half-crown entitled to refund on that portion derived from such debentures. Taxpayers whose income from ail sources under £5300 on production of de, claration to that effect mav be allowed payment in full."

_ Invest in these debentures whilst vou nave the chance. Pamphlets containing the fullest information mav be obtained at -any branch of the Bahk" of New Zealand or from the General Manager of the New Plymouth Borough Council New I Plymouth. ' i