FULL COURT

Dominion, Volume 11, Issue 195, 7 May 1918, Page 8

FULL COURT

* —• —• RESERVED JUDGMENT A QUESTION OF STAMP DUTIES Tho Pull Court sat yesterday Ihe Chief Justice, Hir Iloberl'Stout (presiding), nnd Their Honours Mr. .lusliee Kdwards, .Mr. .lusliee thnpninn, niel Mr. Jusliee Him. Reserved jiiilsmont. ivim delivered in the ease of Lord Ineheape v. (he Minislcr nl' Slump .Duties, a waller concornitiß Iho duly payable on I lie transfer of Khnres in connection with (he amal|;a. million of Iho Union Slciim Ship Company with the Peninsular and Uriental Steam .Navigation Company. Al the limo of tho fusion of tho two t'ompunitv, one (iro'Mi possessed I") ordinary shares in the Union Company, of the "value of X\ each. These he transferred on July 0, I'.ll", lo Lord Ineheape, in consideration ol Iho sum of JJ'JIW Ills, in money ami ,i.'B7 Ids. in deferred slock in tho P. and (I. Company. Tho market value of thin deferred P. and O. slock was shown us ,l"J8t 7s. titl. Aeeordini; lo Mr. C. P. Skerrclt, K.C., who wilh Mr. C. G. While appeared lor the appellant, tho actual assessment under llio Stamp Duties Act of this transfer was at. the rate of :is. for every -I'M of tho lolal consideration. The question was whether the duly was payable not only upon tho money considcralion, but also upon tho value til' Iho deferred ntock. Tho duly on the conveyance was 10s. on every J!fnl. The pi'.'iollnnl contended Ihiit (he transaction came under tho tiansl'er of shares. On behalf of Iho respcudenl, Iho Snlicilor-Ooncral ;Mr. .1. \V. Salmund, K.C.) submitted that the assessment of duly in this euso uiiuht Iw sup|H»rted on two independent and separnto grounds! (I) liy virtue of Sections 81 and Si of Iho Stamp Duties Ae( the transaction was constructively it Irausaelion of shares on sale ami was subject l lo ml valorem duly on (he lotiil consideration necortlinjrly; v-) tho transaction was an cxeliaiißt! oil shares and therefore by Seelion '1 of tho Stamp Duties Amendment. Act, Iflll), was liable (o.tho samo ad valorem duly as a transfer of fdiares on Tho appeal was dismissed on the judgment of the majority of the Court, Mr. Justice Edwards dissenting.