LAND TAX PAYMENTS.

New Zealand Herald, Volume LXVII, Issue 20716, 8 November 1930, Page 10

LAND TAX PAYMENTS.

USE OF PROMISSORY NOTES. THE CONCESSION ILLUSTRATED. [BY TELEGRAPH.—OWN CORRESPONDENT.] WELLINGTON. Friday. Although a considerable concession is being made to those responsible for the payment of land tax by the Government's decision to allow the use of promissory notes, the system is not entirely new. It was first introduced during the depression of 1921-22, and it has since been applied to meet the convenience of individuals from time to time. However, the announce,ment marks the first extensive acceptance of promissoiy notes for several years.

The effect of the concession is illustrated in a, hypothetical case by the Commissioner of Taxes. A farmer who in the ordinary courso of events failed to pay his land tax of £SO on the due date would be liable to an additional payment of £2 10s. If, however, he took advantage of the Government's concession, and sent a bill at three months for £SO, accompanied by a cheque for the discount, the total charge would be 19s 2d, being 18s 2d interest or discount for three months on £SO at 7 per cent., and Is stamp duty. Ho would thus save £1 10s lOd.

The operation of the concession will place a considerable amount of extra work on the department which deals with the banks in the collection of the money. It is anticipated that numerous applications for benefit under the concession will be made as a result of the Government's decision to extend the system this year.