30th January 2010
Dear Mr Webster
You asked in your letter of 25th January for some information on certificates of tax deposit. These are a new form of tax reserve certificate superseding6 tax deposit accounts which had previously replaced company tax reserve certificates. They are issued by the Inland Revenue and represent a non—transferable interest—bearing asset, which may be used to meet the payment of most taxes. They are available to tax—payers generally and earn interest at varying rates when surrendered to meet tax liabilities. Interest is at a lower rate when the certificates are redeemed for cash.
Certificates of tax deposit therefore differ in two import ant ways from certificates of deposit:
(1) C.T.D.s are issued by the Inland Revenue, C.D.s by the banks;
(ii) C.T.D.s are non—transferable and non—negotiable; CD.s are both transferable and negotiable.
NOTE: Use of both the correspondent’s name in the salutation and the matching close and Yours sincerely gives the Bank’s reply a friendly tone.
Courtesy requires the information received to be acknowl edged.