STAMP DUTY.

Auckland Star, Volume LV, Issue 250, 21 October 1924, Page 8

STAMP DUTY.

appeal by company. teansfer"of shares. (By Telegraph.—Press Association.) WELLINGTON, Monday. The Appeal Court had before it to-day a case in which tlie D.I.C. was the appellant and the Minister of Stamp Duties the respondent. Mr C P Skerrett, K.C., and Mr. Johnson appeared for the former, and Mr. A Fair for the latter. The main question was: "If the company, pursuant to the provisions of its memorandum of association, divides its assets, or part, iin special or in kind, among its shareholders, in accrodance with their interests in shares of the company, are the instruments to give effect to such division liable to stamp duty as on a conveyance of sale?" The claim was one of £580 made by the Miinster, and concerned with a transaction by which the D.I.C. bought out George and Kersley. Subsequently • the liquidator for George and Kersley transferred land shares held by them to the D.I.C. The question was whether this transaction was a sale by George and Kersley, Ltd., on which the D.I.C. would have to pay stamp duty. The consideration for the land was ±"55,000. The D.I.C. purchased the shares of George and Kerslev, Ltd., in their Wellington and Wanoanui businesses for £140,098, the shares being transferred to nine persons nominated by the company and later to the company. After hearing legal nrgument the Court reserved its decision.