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TUESDAY, JULY 2, 1974
TAX RESERVE CERTIFICATES BECOMING MORE POPULAR
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MORE AND MORE TAXPAYERS ARE MAKING USE OF TAX RESERVE CERTIFICATES TO HELP PAY THEIR TAX BILLS.
COMMENTING ON THE GROWING POPULARITY OF THE TAX RESERVE CERTIFICATE SCHEME, THE DEPUTY COMMISSIONER OF INLAND REVENUE, MR. RONALD GIDDY SAID TODAY THAT SINCE THE REVISION OF THE ANNUAL INTEREST RATE PAYABLE ON THE CERTIFICATES LATE LAST YEAR, THERE WAS A SUBSTANTIAL INCREASE IN THE VALUE OF CERTIFICATES SOLD.
DURING THE SIX-MONTH PERIOD FROM NOVEMBER 1 LAST YEAR WHEN THE ANNUAL INTEREST RATE OF THE CERTIFICATES WAS RAISED FROM 4.2 PERCENT CTAX FREED TO 5.7 PERCENT (TAX FREE), THE OVERALL VALUE OF CERTIFICATES SOLD STOOD AT JUST OVER $8.88 MILLION. THIS REPRESENTED AN INCREASE OF SOME $1.72 MILLION OVER THE FIGURE. RECORDED FOR THE CORRESPONDING PERIOD IN 1972/73.
+THE CONSIDERABLE INCREASE IN THE VALUE OF CERTIFICATES SOLD BEARS ELOQUENT TESTIMONY TO THE FACT THAT THE SCHEME IS BECOMING MORE POPULAR WITH THE TAX-PAYING COMMUNITY,+ NOTED MR. GIDDY.
OF COURSE, THE INCREASE OF THE ANNUAL INTEREST RATE PAYABLE ON THE CERTIFICATES HAS MADE THE SCHEME DOUBLY MORE ATTRACTIVE TO THE TAXPAYERS, HE ADDED.
THE DEPUTY COMMISSIONER POINTED OUT THAT THE INTEREST ON THE CERTIFICATES IS COMPUTED IN MONTHLY STEPS AND THE EXISTING RATE IS 47.5 CENTS FOR EVERY $100.
THE SIMPLE INTEREST STARTS TO ACCRUE FROM THE FIRST DAY OF THE MONTH FOLLOWING THE DATE OF ISSUE OF THE CERTIFICATE TO THE FIRST DAY OF THE MONTH IN WHICH IT IS ACCEPTED FOR PAYMENT OF TAX DUE.
THE TAX RESERVE CERTIFICATE SCHEME, WHICH MR. GIDDY DESCRIBED AS A PRIVATE +PAY-AS-YOU-EARN+ SYSTEM, IS DESIGNED TO HELP THE PRUDENT TAXPAYER, ESPECIALLY THE MONTHLY-SALARIED MAN, TO BUILD UP OUT OF HIS INCOME A RESERVE FUND FOR THE PAYMENT OF TAX.
APART FROM THE OBVIOUS ADVANTAGE OF THE INTEREST PAYABLE * ON THE CERTIFICATES WHICH BUYERS CAN REAP, THEY WILL BE SPARED POSSIBLE EMBARRASSMENT WHICH MAY CROP UP WHEN THEY ARE REQUIRED TO PAY A SIZEABLE LUMP SUM OF TAX AT A PARTICULAR TIME EVERY YEAR, OBSERVED MR. GIDDY.
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THE SCHELDE
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