IMPORTANT RULING.

Hauraki Plains Gazette, Volume XXXX, Issue 5420, 6 May 1929, Page 2

IMPORTANT RULING.

STAMPS ON AGREEMENTS. FRANKING MACHINE ILLEGAL. An important ruling ha.s been given by the Stump Duties Department on the, nueation of the mode of of stamp duty on agreements and other documents required to be stamped. The ruling was given following a c.a,se in the; Palmerston Nbrth Magistrate’s Court in which a hirepurchase agreement had been st ampe?.l to the amount of Is 3d by thel us® of a franking machine. Counsel for t'he defence contended that the use of such machines was illegal- The question was accordingly submitted by t'he Court to the Stamp Duties Department at Wellington, from which the; following, reply has been received. The impressing by the use of a recording machine; on the instrument described of stamp valwep to the amount of Is 3d does not make t'he document a duly-stamped instrument Provision is made in Section 17 of the Post and Telegraph Act for the use of a recording machine! for thq purpose of prepayment of postage and charges on telegrams in addition to the payment of stamp duty upon receipts. There is no other purpose for which a recording machine can be used. T lle amount of Is 3d so impressed on the document has been treated as money paid to the Post Office for services ( whereas had the document been properly stamped the amount of the duty would have been paid into t'he public account as part of the public revenue derived from taxation.