XN000022-1978-09-22 — Page 4

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FRIDAY, SEPTEMBER 22, 1978

INTEREST ON TAX RESERVE CERTIFICATES INCREASED

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THE GOVERNMENT HAS ANNOUNCED THAT FROM TODAY (SEPTEMBER 22, 1978) THE ANNUAL RATE OF TAX FREE INTEREST PAYABLE ON TAX RESERVE CERTIFICATES HAS BEEN INCREASED FROM 3 PER CENT TO 3.24 PER CENT.

A SPOKESMAN FOR THE INLAND REVENUE DEPARTMENT SAID THAT INTEREST ON TAX RESERVE CERTIFICATES IS CALCULATED IN MONTHLY STEPS AND THE NEW RATE WILL BE 27 CENTS PER MONTH ON EVERY $100. INTEREST WILL BE CREDITED AS BEFORE IN RESPECT OF COMPLETED MONTHS BETWEEN PURCHASE AND SURRENDER OF THE CERTIFICATES 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 THE CERTIFICATE IS REPAID IN CASH,+ THE SPOKESMAN SAID.

THE NEW RATE WILL APPLY TO ALL CERTIFICATES ISSUED ON

OR AFTER SEPTEMBER 22, 1978.

CERTIFICATES WHICH WERE ISSUED ON OR AFTER FEBRUARY 17, 1977 AND BEFORE SEPTEMBER 22, 1978, WHEN THE RATE WAS 3 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, BUT ALWAYS SUBJECT TO THE GENERAL RULE THAT INTEREST CEASES TO ACCRUE AFTER 36 COMPLETED MONTHS WITHOUT SURRENDER FOR PAYMENT OF TAX.

THE SPOKESMAN GAVE THE FOLLOWING EXAMPLE:-

$1,000 CERTIFICATES PURCHASED SEPTEMBER 22, 1978, OCTOBER 22, 1978 AND NOVEMBER 22, 1978 RESPECTIVELY, SURRENDERED IN PAYMENT OF TAX DUE ON JANUARY 3, 1979, WILL HAVE INTEREST CALCULATED AS FOLLOWS:

ON $1,000, SEPTEMBER 22, 1978 TO DECEMBER 21, 1978,

3 COMPLETE MONTHS AT $2.70 PER MONTH

- $8.10

ON $1,000, OCTOBER 22, 1978 TO DECEMBER 21, 1978,

2 COMPLETE MONTHS AT $2.70 PER MONTH

= $ 5.40

ON $1,000, NOVEMBER 22, 1978 TO DECEMBER 21, 1978,

1 COMPLETE MONTH AT $2.70 PER MONTH

- $ 2.70

INTEREST ACCRUED

$16.20

THE INTEREST ACCRUED IS ROUNDED OFF TO $17 IN ACCORDANCE WITH THE TAX RESERVE CERTIFICATES (FOURTH SERIES) RULES.

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