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FRIDAY, NOVEMBER 24, 1978
INTEREST ON TAX RESERVE CERTIFICATES INCREASED
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THE GOVERNMENT HAS ANNOUNCED THAT FROM TODAY (NOVEMBER 24) THE ANNUAL RATE OF TAX FREE INTEREST PAYABLE ON TAX RESERVE CERTIFICATES HAS BEEN INCREASED FROM 3.24 PER CENT TO 5.04 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 42 CENTS PER MONTH ON $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 APPLIES TO ALL CERTIFICATES ISSUED ON OR AFTER NOVEMBER 24, 1978.
CERTIFICATES WHICH WERE ISSUED ON OR AFTER SEPTEMBER 22, 1978 AND BEFORE NOVEMBER 24, 1978, WHEN THE RATE WAS 3.24 PER CENT PER ANNUM, 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 AND THOSE ISSUED ON OR AFTER FEBRUARY 17, 1977 AND BEFORE SEPTEMBER 22, 1978 WILL CONTINUE TO EARN INTEREST AT 3 PER CENT, BUT ALWAYS SUBJECT TO THE GENERAL RULE THAT INTEREST CEASES TO ACCRUE AFTER 36 COMPLETED MONTHS WITHOUT SURRENDER FOR PAYMENT OF TAX.
EXAMPLES:-
$1,000 CERTIFICATES PURCHASED NOVEMBER 24, 1978, DECEMBER 24, 1978 AND JANUARY 24, 1979 RESPECTIVELY, SURRENDERED IN PAYMENT OF TAX DUE ON FEBRUARY 27, 1979, WILL HAVE INTEREST CALCULATED AS FOLLOWS:-
ON $1,000, NOVEMBER 24, 1978 TO FEBRUARY 23, 1979,
3 COMPLETE MONTHS AT $4.20 PER MONTH
ON $1,000, DECEMBER 24, 1978 TO FEBRUARY 23, 1979,
2 COMPLETE MONTHS AT $4.20 PER MONTH
ON $1,000, JANUARY 24, 1979 TO FEBRUARY 23, 1979,
1 COMPLETE MONTH AT $4.20 PER MONTH
INTEREST ACCRUED
$12.60
$ 8.40
$ 4.20
$25.20
INTEREST ACCRUED IS ROUNDED OFF TO $26 IN ACCORDANCE WITH THE TAX RESERVE CERTIFICATES (FOURTH SERIES) RULES.
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