THURSDAY, FEBRUARY 15, 1979.
TAX RESERVE CERTIFICATE INTEREST RATE RAISED
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THE ANNUAL INTEREST RATE ON TAX RESERVE CERTIFICATES WILL BE RAISED FROM 5.04 PER CENT TO 5.76 PER CENT FROM TOMORROW (FRIDAY).
THE LEGAL NOTICE ON THE GOVERNOR'S AUTHORISATION ON INCREASING THIS TAX FREE INTEREST RATE IS CONTAINED IN TOMORROW'S GOVERNMENT GAZETTE.
INTEREST ON TAX RESERVE CERTIFICATES IS CALCULATED IN MONTHLY STEPS AND THE NEW RATE WILL BE 48 CENTS PER 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 TOMORROW.
CERTIFICATES ISSUED ON OR AFTER NOVEMBER 24, 1978, AND BEFORE TOMORROW, WHEN THE RATE WAS 5.04 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 AND THOSE ISSUED ON OR AFTER SEPTEMBER 22, 1978 AND BEFORE NOVEMBER 24, 1978 WILL CONTINUE TO EARN INTEREST AT 3.24 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 FEBRUARY 16, 1979, MARCH 16, 1979 AND APRIL 17, 1979 RESPECTIVELY, SURRENDERED IN PAYMENT OF TAX DUE ON MAY 28, 1979, WILL HAVE INTEREST CALCULATED AS FOLLOWS:
* ON $1,000, FEBRUARY 16, 1979 TO MAY 28, 1979,
THREE COMPLETE MONTHS AT $4.80 PER MONTH
- $14.40
* ON $1,000, MARCH 16, 1979 TO MAY 28, 1979, TWO COMPLÈTE MONTHS AT $4.80 PER MONTH
- $ 9.60
*
ON $1,000, APRIL 17, 1979 TO MAY 28, 1979, ONE COMPLETE MONTH AT $4.80 PER MONTH
- $ 4.80
INTEREST ACCRUED
$28.80
THE INTEREST ACCRUED IS ROUNDED OFF TO $29 IN ACCORDANCE WITH RULE 7(3) OF THE TAX RESERVE CERTIFICATES (FOURTH SERIES) RULES.
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