EVADING STAMP DUTY

Dominion, Volume 12, Issue 152, 22 March 1919, Page 10

EVADING STAMP DUTY

A CURIOUS PROCEDURE. I ■ A most curious case wherein the action ot the delendant had deprived tne country of certain revenue was heard beiore Mr. F. V. Frasser, S.M., at tho Magistrate's Court yesterday. Elizabeth Iteivison, wno resides at Lvall Kay, was enurged, with evading suimp duty by giving Ellen Drudge, a tenant of iiers, a receipt tor ill 11)=. lOd. on payment of .£2. The defendant, who was represented by Mr. C. B. O'Donuell, pleaded not guilty. Acting Sub-inspector Emersou conducted the case for the police. Evidence was given bv Ellen Drudge to the e.ll'ect that she entered into an ,agreement with defendant for tho tenancy of a house at Lyull Bay, the weekly rental being agreed .upon at £2. She entered into possession m August last and when she paid over the .£2 for the first week's rent defendant gave her a receipt in tho rent book for il 19s. lOd. and returned to witness 2d., remarking at the time: "You may as well have it as the Government." Later, the epidemic came along and as a result of an inspection by representatives of the Epidemic Committee sho was advised that she should not pay sucli a large rent as the house was not worth it. Representations were made to the defendant and witness then received notice to quit. As regards tho rent witness said that tho Epidemic Committee would stand by her in any action she might take. Tho committee told witness to refer dofondant to them should defendant raise any objection. Subsequently she saw tho City Solicitor, who upon examining the rent book, advised her that it'was her duty to report tho defendant on tho matter of evading stamp duty. The matter was duly reported. To Sub-Inspector Emerson: Witness said that tho Epidemic Committee had told her she was not to pay more than it per week for rent. It was on account of this direction that witness stopped paying tho ill The City Solicitor fold her that a breach of the Stamp Act had been committed. The defendant, iu evidence, said that when Mrs. Drudge tendered tho first weeks' rent she said: "I'll charge vou 19s. 10(1. —it sounds less." She denied having said that sho reduced the rent in order to avoid paying stamp duty. To Sub-Inspector Emerson: Witness admitted that tho weekly rental agreed upon was X 2, but when the first payment was made she cave-2d. change and gave a receipt for £1 19s. lOd. To His Worship: Mrs. Drudge and her family had caused a lot of trouble. They had damaged the house and broken tlio windows. How did the windows became smashed? —"They were deliberately smashed." llow do you know?—" Well, it looked as though "they had been deliberately smashed." To Sub-Inspector Emerson: Her reason for sending the notice to quit to Ill's. Drudge was not due to tho probability of witness having to reduce the rent. His Worship: Wli" did you reduce the rent to XI 19s. 10d.? Defendant: It was iust an impulse that made mo do it. Miss llewison, daughter of the defendant, stated that there, had always been trouble with Mrs. Drudge, who, with her family, had been a nuisanco over since they entered tho house. "Tho issue is: Has the Govornmont been defrauded of 2d.?" said his Worship, in summing np. Ho was prepared to accept tho statement of Mrs. Drudge. To his mind one or tho other of two things had caused defendant to reduce tho rent to JJI 19s. lOd. Either sho had not any 2d. stamps and would not bother to get any or it may have ken that sho had sonio grudge or other against the Government and did not see why the Government should get 2d. from her. The 2d. might bo regarded as a discount, but this would not affect tho issue. The rent was acknowledged to be £2, and every receipt for .£2 was liable to stamp duty. It was an unusual case, and tho defendant herself was not making a-profit; on the transaction. There was no possible doubt that a breach had been committed. Defendant would lie couvicted and lined XI and costs. Defendant: It is a scandal! His Worship: If. you talk like that you will bo put out of the Court.