THE WAR LOAN

Otago Daily Times, Issue 24432, 18 October 1940, Page 8

THE WAR LOAN

SPREAD OF PAYMENTS POSITION OF STOCK RESERVES REPLY TO REPRESENTATIONS (Per United Press Association) WELLINGTON. Oct. 17. Certain points in connection with the Government’s interest-free war loan were made clear by the Minister of Finance (Mr Walter Nash) in a reply received by the Associated Chambers of Commerce to representations made through that body by a joint taxation committee composed of representatives of the Associated Chambers, the Farmers’ Union, the Manufacturers’ Federation and the Federation of Drapers and Clothiers and Boot Retailers • In respect to the valuation of trading stock for income tax purposes the Minister advises that anv increase in income for the year ended March 31, 1933, brought about by the inclusion by the Commissioner of Taxes of an amount in respect to a stock reserve created in any other year will be ignored in computing such taxpayer s income for the year ended March 31, 1939. and the tax will be computed as if the amount had not been included in the income. Stock reserve, therefore, will not operate to increase the liability of a taxpayer to contribute to the war loan. ~ ~ Regarding the spreading of the payment of instalments of the loan, the Minister states that provision for the payment of instalments in October and December. 1940. and March. 1941, was .deliberately adopted by the Government to spread the payments as far as possible for the current financial vear. "This war loan represents loan requirements essential for war purposes during this financial year,” Mr Nash states. “ and I think the chambers will appreciate that to spread the payments over a longer term will not be possible in the circumstances. Dealing with gifts made to the Government for war purposes. Mr Nash said that under the prospectus for the loan provision was made for taxpayer? to convert free of interest loans paid to the Government for war purposes to stock in war loan. “I agree that a contribution made by a person who gave money to The Government as an outright gift is greater than that effected by a free of interest loan for a limited term. The Government will be glad to give consideration to the cases of persons who made gifts.”

In respect to hardship on taxpayers, the Minister stated that similar circumstances would apply in regard to this point, and all these cases could be dealt with from the point of view of hardship on anneal. Concerning non-resident persons and companies. Mr Nash replied that they were liable for payment of income tax in respect to income derived in .New Zealand and the liability to contribute to the loan was based entirely on their income tax. “ Income is. earned by the use of assets and investments in New Zealand which participate in the protection afforded by means of this war loan, and I cannot see any reason why they should be less liable to contribute than similar assets and investments owned by New Zealanders. In exceptional cases an appeal can be made and particular circumstances can then be taken into account.” . Mr Nash added that the Government appreciated the desire of the. Associated Chambers to co-operate with it and assist in having these provisions framed as equitably and efficiently as possible.

SUBSCRIPTION OF £IO,OOO CONTRIBUTION BY THE MAORIS (Per United Press Association) GISBORNE. Oct. 17. A subscription of £IO,OOO to the War Loan has been made on behalf of Native interests in the district by the East Coast Commissioner (Mr J. S. Jessep). Half of this, sum was subscribed on account of the Mangatu portion of the East Coast Trust, and the other half on account of owners in the balance of the trust whose lands extend from Tolaga Bay and Matawai to Wairoa. There are over 7000 shareholders in all in the trust. The trust was not liable under the regulations to take up any of the loan, but the Maori people had expressed to the commissioner their strong desire to make a contribution. TEMPORARY TRADING ARRANGEMENTS (Per United Press Association) WELLINGTON, Oct. 17. The Stock Exchange Association of New Zealand advises that on Monday next all Stock Exchanges will be in a position to quote the new war loan maturing on October 1, 1953. As certificates of title will not be issued till after the final instalment date, March 25, 1941, transfers will be accepted as good delivery if accompanied by an allotment letter, which will be full evidence of the seller’s holding and of the amount paid up. On registration of the transfers, the Reserve Bank will issue fresh allotment letters as a. temporary title, and these can again be traded in until March 25. 1941, On and after that date allotment letters must be surrendered and certificates of title obtained to support transfers.