STAMP DUTY

Hokitika Guardian, 15 December 1927, Page 4

STAMP DUTY

APPEAL AGAINST ASSESSMENT. WELLINGTON, Doc. 13. An appeal against an assessment of £IOO stamp duty was made by Standard Porcelains, No.'" Zealand Ltd., before Sir Charles Skerrett in the Supreme Court. Mr Sladden, for appellant, stated that It. IV. Sneddon was the .possessor of a secret formula for the manufacture of porcelain enamel, and entered into a contract, which was the subject of this case, with Thomas Reynolds, who proposed to form Standard Porcelains. The company was formed on October 29th. 1925. and in terms of the agreement Sneddon was allotted 10,003 fully paid shares of £1 each. Upon the incorporation of the company Sneddon l»eeame managing director. The company erected a factory at Petone, but never went so far as manufacturing goods. Later the company decided to sell to Metiers. New Zealand, Ltd., and the sale was effected by agreement. Immediately on the old company going into liquidation Sneddon’s employment as managing director ceased. Mr Sladden submitted that the company never having carried on the manufacture and sale, never l>ecame entitled to the secret process. The agreement was assessed at £IOO stamp duty, under section 79 A. of the Stamp Duties Act, also section 88. Appellant’s submission was that the agreement constituted neither a conveyance of sale nor an agreement of sale, and it did not come within the scope of the provisions of the Act. Air Fair, Solicitor-General, who appeared for -ftie Commissioner of Stamps, submitted that the instrument was an agreement for the sale of property for £IO,OOO and that Sneddon had agreed to sell his "knowledge for that sum. Decision was reserved.