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THURSDAY, OCTOBER 25, 1979
INTEREST ON TAX RESERVE CERTIFICATES INCREASED
*****
THE ANNUAL RATE OF INTEREST PAYABLE ON TAX RESERVE CERTIFICATES WILL BE INCREASED FROM 8.04 PER CENT TO 8.4 PER CENT, TAX FREE, AS FROM TOMORROW (FRIDAY).
THE INCREASE HAS BEEN AUTHORISED BY THE GOVERNOR AND NOTIFICATION WILL BE MADE IN TOMORROW'S GOVERNMENT GAZETTE.
INTEREST ON TAX RESERVE CERTIFICATES IS CALCULATED IN MONTHLY STEPS AND THE NEW RATE WILL BE 70 CENTS A MONTH PER $100. INTEREST WILL BE CREDITED AS BEFORE IN RESPECT OF COMPLETED MONTHS BETWEEN PURCHASE AND SURRENDER IN PAYMENT OF TAX.
INTEREST IS ONLY CREDITED WHEN CERTIFICATES ARE USED TO PAY TAX AND NO INTEREST IS DUE WHERE THE PRINCIPAL VALUE OF A CERTIFICATE IS REPAID IN CASH.
THE NEW RATE WILL APPLY TO ALL CERTIFICATES ISSUED ON OR AFTER OCTOBER 26, 1979.
CERTIFICATES ISSUED ON OR AFTER MAY 4, 1979, AND BEFORE OCTOBER 26, 1979, WHEN THE RATE WAS 8.04 PER CENT WILL CONTINUE TO EARN INTEREST AT THAT RATE.
+
CERTIFICATES ISSUED ON OR AFTER SEPTEMBER 19, 1975 AND BEFORE FEBRUARY 17, 1977, WILL CONTINUE TO EARN INTEREST AT 4.2 PER CENT.
THOSE ISSUED ON OR AFTER FEBRUARY 17, 1977 AND BEFORE SEPTEMBER 22, 1978 WILL CONTINUE TO EARN INTEREST AT THREE PER CENT- THOSE ISSUED ON OR AFTER SEPTEMBER 22, 1978 AND BEFORE NOVEMBER 24. 1978 WILL CONTINUE TO EARN INTEREST AT 3.24 PER CENT- THOSE ISSUED ON OR AFTER NOVEMBER 24, 1978 AND BEFORE FEBRUARY 16, 1979 WILL CONTINUE TO EARN INTEREST AT 5.04 PER CENT AND THOSE ISSUED ON OR AFTER FEBRUARY 16, 1979 AND BEFORE MAY 4, 1979 WILL CONTINUE TO EARN INTEREST AT 5.76 PER CENT, BUT ALWAYS SUBJECT TO THE GENERAL RULE THAT INTEREST CEASES TO ACCRUE AFTER 36 COMPLETED MONTHS WITHOUT SURRENDER FOR PAYMENT OF TAX.
EXAMPLE
$1 000 CERTIFICATES PURCHASED ON OCTOBER 27, 1979. NOVEMBER 27, 1979 AND DECEMBER 27, 1979 RESPECTIVELY, SURRENDERED IN PAYMENT OF TAX DUE ON JANUARY 26, 1980, WILL HAVE INTEREST CALCULATED AS FOLLOWS:-
ON $1 000, OCTOBER 27, 1979 TO JANUARY 26, 1980,
3 COMPLETE MONTHS AT $7 PER MONTH
- $21.00
ON $1 000, NOVEMBER 27, 1979 TO JANUARY 26, 1980,
2 COMPLETE MONTHS AT $7 PER MONTH
- $14.00
ON $1 000 DECEMBER 27, 1979 TO JANUARY 26, 1980,
1 COMPLETE MONTH AT $7 PER MONTH
INTEREST ACCRUED
- $7.00
$42.00
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