ELIMINATING "UNDER-THE-HAT" PAYMENTS

Chronicle (Levin), 8 July 1946, Page 8

ELIMINATING "UNDER-THE-HAT" PAYMENTS

"Under-the-liat" .jiavments of money in land sale transaetions may now be practicallv stamped out by new regulations under the Servicemen 's Settlement and Land Saies Act, according to an interpretation of the new regulations given by the Land Saies Court at Napier. Regulations recentlv issued give a person who has paid' an "under-the liat" sum the right to sue for that sum apd recover it as a debt due. This gives the purehaser the opportunity to recover money illegallv handed over, a right which he did not have in the past. Furthermore, any person can now •be ealled to give evidence in connection with offences or the recovery of excess payments, and that person eannot plead privilege on the grounds that he would be incriminating himself. Lieense Oancellation A further new regulation provides •that a land agent's lieense may be eancelled if he or a partner, servant or agent, is eonvicted under the Act. A regulation recently issued also covers the time of valuation, thus ■eliminating an anomaly which has heen argued consistentlv in the LandSaies Court. The regulation provides that improvements in existence on Deeember 15, 1942, are-to -be valued as at that date without account of subsequent cost inereases. Improvements or additions to existing improvements after Deeembcr 15, 1942, are to be valued as at the time effected.