REDUCTION OF MORTGAGES.
SHOULD NOT BE REG ADDED AS
(From Our Own Correspondent.) Wellington, Jan. 3.
Mr. H. Campbell (Hawke’s Bay) stated in the House of Representatives yesterday that in consequence of the fall in the price of land, some people who had sold land at high prices on small deposits were willing to cancel portion of the mortgages in order to enable the buyers to carry on. But under the preeent law such cancellations were regarded as gifts, and the mortgagees were liable to pay gift duty on the amounts deducted from the mortgages. Would the Prime Minister give an assurance that in legitimate cases the Taxation Department would not charge gift duty on amounts deducted from mortgages?
The Prime Minister replied that he was very glad to hear that in the Hawke’s Bay district mortgagors and mortgagees were making satisfactory rearrangements. The deductions technically would be gifts and so would fbe liable to gift duty. He would eonfer with the head of the Department on the subject, and if necessary he would bring down legislation before the end of the session so as to put the matter right.
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Taranaki Daily News, 6 February 1922, Page 2
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190REDUCTION OF MORTGAGES. Taranaki Daily News, 6 February 1922, Page 2
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