SUPREME COURT

Dominion, Volume 13, Issue 259, 27 July 1920, Page 6

SUPREME COURT

STAMP DUTY ASSESSMENTS

TWO APPEALS HEARD Two disputed assessments of stamp duties were considered tw tile Full Court yesterday morning. In tile first case, the British. Petroleum Development Company was the appellant. Hie statement showed ihat on January 2J, 1919, an agreement was executed, wheroby the Associated Oil Corporation agreed to grant tho appellant a 999 years' lease of certain freehold land, comprising 21 acres. Tho consideration by way of premium for tho erant of the lease wan (a) £SOOO in cash; (b) debentures to bo ißsued bv tho appellant company for tho sum of £22,W8. having a, currency of threo years, and beating interest at tho rate of 7 per cent, per annum, and charged upon all the property jvnd uncalled capital of tho company; (c) 120,000 fully paid-up £1 shnres of the a;pellant company. At the date of tho agreement and lease, and of tho issue of tho raid-up shares, the appellant company owned no property other than the leasehold interest acquired bv tho agreement. When tho ad valorem stamp duty on the agreement came to be assessed, the assessment was made on the £8000 in cash and cn tho nominal amount of tho debentures and tho paid-up shares. Tho company objected to tho assessment on the debentures and. tho shares, contending that the duties should have been computed on the actual saleable value in tlie marset at the date of the agreement or the date of issue.

Aftor hearing argument, tho Court re* served decision*

DAIRY COMPANY'S APPEAU In the second case, that of the Thames Taller Co-opcrativo Dairying Co., I'itd., v. tho Mimitor of Stamp "Juties, the Court was asked to decide whether the appellant company was liable for tho pi-ymtnt of an annual licensing fee or was csempt under the provisions of the Seventh Sehedulo of tho finance Act, 19)5. The Court held that tho company wa» not exempt.