WHAT IS DEBENTURE TAX ?

New Zealand Times, Volume XLVII, Issue 10965, 29 July 1921, Page 6

WHAT IS DEBENTURE TAX ?

Many investors do not fully realise th* fact that 7£ per cent interest free of debenture tax is a ‘bettor return than 8 pc cent, or 8£ per cent, subject to tax. The Government levies a tax of 3s in ttio £1 ’on all debenture interest paid to tiu debenture holders. This sum is paid t<- the Government by the Company on behalf of aha debenture holders, and, if t’»e d ebon tares are not free of tax. deducted -from the interest payment to the debenture holder. For instance, 8 cer cent, debentures not free of will return j£B loss 24e— £6 16s per cent, per annum. The 7£ per cent. Debentures issued by Macky, Logan, Caldwell, Ltd., are payable free of tax. That is, the Company will pay the Government the :lobentu,-» tux on behalf of the debenture holder, and will not deduct it from tho interest payment; so that every debenture holder will receive J 27 10s in full dw year for every .£IOO invested. That thi- is the best proposition offering to the small investor to-day is proved by the wonderful response. Subscription* continue to pour in at & great rate, so that there is every indication that the issue* of <£230.000 will soon be fully subscribed. .8117,000 was subscribed m the first two weeks, and at the time of writing the total reaches well over <£150,000. Intending subscribers should lose no time in securing a copy of-the tus. in which an application form will t« found. Ask at any branch of the Bank of Xew Zealand, any member of ‘he Auckland or Wellington Stock Exchange. or any of the Company's Branches.—Advt.