STAMP DUTY ON DOCUMENTS

Manawatu Herald, Volume L, Issue 3937, 2 May 1929, Page 3

STAMP DUTY ON DOCUMENTS

FRANKING MACHINES NOT PERiMIS'SABLE. DECISION OF COMMISSIONER OF STAMPS. Franking machines may not be used for the payment of stamp duty on documents requiring to be stamped. This is the decision o-f the Commissioner of Stamps. The question arose in the Palmerston North Magistrate’s Court, when Ford Motor’s, Manawatu Ltd., sued iC. E. and, S. A. Davey for the recovery o-f £29 9s 4d, being’ instalments due under a hire purchase agreement and money owing for goods supplied. At the hearing of the case, Mr. Cooper objected to the admission of the agreement in evidence, on the ground that it was not stamped in accordance with the enactments in force. •The matter was referred to the Commissioner of Stamps, who replied as follows: — “Referring to your memorandum of March 27, I have to advise that the impressing by the use of a recording machine on the above described instrulment of stamp values to the amount of 1/3 does not make the document a duly stamped instrument. Provision is made in Section 17 of the Post and Telegraph Act, 192-8, for the use of recording machines for the purpose of prepayment of postage and charges oil telegrams in addition to the payment of stamp duty upon receipts. There is no other purpose for which a recording (machine can be used. The amount of 1/3 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 the public account as part of the public revenue derived from taxation.”

Air. J. L. Stout in giving bis reserved judgment on Tuesday, stated that although the lorry had been resumed from the hirers by the vendors, he held that they should pay one instalment which had fallen due before the lorry was seized. He accordingly gave judgment for £7 13s with costs Amounting to £2 9s, together with an amount o-f £7 8s which was paid into Court -prior to the hearing.