STAMP DUTIES ACT, 1923

Hokitika Guardian, 20 December 1923, Page 4

STAMP DUTIES ACT, 1923

PARTK'Ci.AUS <>,• VF'V L\ W. | (In the lirst dnv of .ianuaiy !P_'4. i a new Siam') Act into force. | Orignall.v drawn by Far .h im Snlumnd. i his Act <-m clidaies ami amends tie* existing Ini. relating to stamp duties. As a cons'ilida ting measure it will be very convenient to members of the legal profession, I.ankers and business men, for non almost the whole of the stamp, law is to he lotind within the page-* of a single statute. The last consolidation of ihe stamp law wax in lilts. Since then there have been no less than twelve amending statutes, (hailing with stamp duties: in order to he certain as to the appropriate amount of duty payable on an instrument, one had to consider the nrovisimis of ail these statutes. Amendments to the stamp law were very prolii-c (hiring the war period, when the avenues of teveiiuc had to he increased. As an amending measure it is antii ipaled that the new stat nie will l.c I- meiu-ia! to the Crown in remedying certain existing defects and nreventinc. leakages of revenue. Perhaps the most important iititov;ixic ll in this respect <s the provision relating to the duly to he paid on the transfer or leas" of premises licsnseil under the Licensing \il. Hitherto in such eases it has been possible to collect duly only on tin* consideration apportioned to the value of the land passing, but a.-, from the first of next January, ad valorem liuty tvill lie parable as well on the con-

■•jideration paitl for the goodwill and 1 license of the hotel-business. It is " well-known to officers of the dopart- -! meiit that many hotels, specially in ■ ! the larger centres of population, have a very considerable goodwill. The new Act expressly establishes a Department-. of State, called the “Stamp Duties Department.' - which is to consist of the .Minister of Stamp Duties, the Commissioner and Deputy Commissioner of Slant]) Duties and Assistant Commissioners of Stamp Duties. Local Deputy Commissioners of Stamp Duties will in the future be known as Assistant. Cmninissionet s of Stamp Duties, and the public are requested to address their correspondence accordingly. As an indication of the importance of the Stump Duties Department- it may he mentioned that the revenue collected by this Department. for the year ending Mist. .March 1923 amounted to £3.894.358 I Ills 7d. The total revenue collected at Hokitika for the same period amounted to £90,447 0s 7d. Stamp offices arc established at the following places: Wellington. Christchurch. Auckland. Dunedin. Napier. Hokitika. Xew Plymouth. Invercargill. Xelson. Gisborne, and TUenheim. Except in the four largest centres of population. Assistant Commissioners of Stain]) Duties are also District Land Registrar.', and as such are responsible for the i.-stte and currency of titles of land in their respective districts; Several minor alterations in the incidence of stamp duty are effected by the new Act. It will he of interest to bankers to learn that bonds for repayment. of money, hitherto absolutely exempt, will now be liable to a duty of 12s 6d, as deeds not otherwise charged. Section 137 of the Act renders a person liable on summary conviction to a line of £SO. who before a bill of exchange or promissory note has been duly stamped, presents it for acceptance or payment, or endorses, transfers, or otherwise negotiates or accepts it, or pays it. All appeals against assessments of Assistant Commissioners, must now be lodged within twentv-one days from the date of as-

sessment. if not so lodged, the assessment becomes conclusive ns against the subject. Tito rate of duty on transfers of mining property is 3s for every £.30 of the consideration; such transfers must not be stamped by the

parties themselves, but must be presented for stamping at a stamp office. The incidence of taxation on agreements for the sale of any property is altered, and parties are advised to present all such agreements at a stamp office for assessment. The* appropriate doty on receipts under the new Act is still 2d. On iho re-institution of penny postage a few months ago. many people erroneously thought that the receipt duty had been reduced to Id also. The omission to stamp properly a receipt is most serious to the parties eoneerneii. for the Stain]) Duties Department lias no power to stamp a receipt after execution thereof, except upon payment of it penalty of £o, if the receipt is presented within one month, after the* date of its execution, or upon payment of a penalty of CIO if it is presented more than one month after the ditto of its execution. With certain exceptions every receipt for an amount or value of f.- or more, must have affixed a stamp or stamps amounting to 2d. The stamp or stamps must he affixed ! cancelled hv the person by whom t lie receipt- i. given before he delivers it out ' i his hand. The stamp must he effectively cancelled so as to render same imenpablo of being used for any other purpose'. Several instances of imperfect cancellation have been brought to the knowledge of tin* department. The penalty for not effectively cancelling a stamp is £lO. The appropriate method of cancellation is for the person giving the receipt i.o write on or across the stain]) or stamps in ink, the true date, and also his name or initials, or the name and initals of his linn, as the case muv he.