STAMP DUTY

Hokitika Guardian, 27 September 1929, Page 8

STAMP DUTY

SAVINGS BANKS’ WITHDRAWAL FORMS. STATEMENT BY PRIME MINISTER WELLINGTON, Sept. 24. Receipts given when money is withdrawn from the Post Office Savings 'Bank are to be exempted from the 2d stamp duty it was intended to impose, according to an announcement made this evening by Sir Joseph Ward, Minister in Charge of the Stamp Duties Department. Sir Joseph explained that the question of stamp duty payable on Savings Banks’ withdrawal forms was first raised by the Treasury referring to the Stamp Duties Office for investigation an unstamped withdrawal form in use by the Invercargill Savings Bank. This form was in effect a bill of exchange payable on demand, properly chargeable under Section 134 of the Stamp Duties Act, 1923, with a stamp duty of 2d. The various Savings Banks were * then called upon to submit their withdrawal forms for consideration, and as a result it was ascertaintd that it was not the practice generally of the Sayings Banks to stamp the withdrawal form, which in f the case of some banks is drawn in the form of a cheque and in the case of others in the form of a receipt. The Savings Banks were accordingly each advised that the withdrawal form when it constituted a cheque, or when it was receipt for an amount of £2 or upwards, was properly liable to a stamp duty of 2d. They have since submitted for consideration amended withdrawal forms, which they have been' advised do not attract stamp ' duty. The withdrawal form in use by the Tost Office Savings Bank was also _ under consideration, and the Department was advised that when tendered for an ariiount of £2 or over it constituted a receipt within the meaning of Stamp Duties Act,1923, and is properly liable to a stamp duty of 2d. The early issues of the Post Office Savings Bank regulations provided that receipts given by persons withdrawing money from the Savings Bank were not liable to stamp duty.. In 1903 the “instructions” wore separated from the "regulations,” and tbje above-mentioned regulation was dropped. A similar passage was, however, placed in the “instruction.’ The Crown Law Office was asked whether it would be effective to reinstate the regulation, but the opinion has been given that . such a regulation could not override the Stamp Duties Act. It is proposed, therefore, to insert a clause in the Finance Bill, or other appropriate Bill, exempting from stamp duty receipts given by persons for money withdrawn from the Post Office Savings Bank