STAMP DUTIES LAW.

Auckland Star, Volume LVI, Issue 224, 22 September 1925, Page 9

STAMP DUTIES LAW.

—• • ■ MORTGAGE DUTY REDUCED. (By Telegraph.—Special to "Star.") WELLINGTON, Monday. A short amendment of the Stamp Duties Act was introduced by Governor's message in the House of Representatives to-night. Ono section strengthens the law relating to attempts to defraud the revenue hy substituting for the term "defrauds, or attempts to defraud.'' in the section relative to false documents having the effect of depriving the Crown of revenue, the new term, "deprives, or attempts to deprive." The bill also provides that it is not necessary for the prosecution to prove that the defendant acted with fraudulent intent.

Conveyance duty is payable, according to another section, where the right is conveyed orally, or by means of a document that is not an instrument within the meaning of the Act.

The Budget promise of reduced duty on mortgages is contained in the bill, which provides that, instead of the former duty of 5/ per £100, the duty shall be 5/ if tbe mortgage docs not exceed £100, or 10/ where it exceeds that amount. The stamp duty on a mortgage release is to bo 5/ if the principal is under £500, and 10/ in cases where the principal exceeds £500. This will apply to all mortgage releases, whether the mortgage has been executed before or after the passing of the Act. Duty in the case of collateral securities where the mortgage duty has been paid is reduced to the nominal sum of 1/. Instruments of dedication of highways are to he wholly exempt from payment of stamp duty. Duties on Fanners' Orders. Mr. Young (Hamilton) asked the Minister in charge of Stamp Duties would he so alter the law that orders drawn by farmers on dairy companies should be liable only to a stamp of 2d per order. This, he said, was the original intention of the law, but amendments to the Act of 1924 had resulted in a stamp duty of 5/ being levied on these orders in place of 2d, though a large number of them were only for small amounts. The Hon. .V. Xosworthy replied that he would look into the matter when the Stamp Duties Amendment Bill was introduced. Mr. Masters (Stratford) suggested that this measure provided an opportunity to put the position right in regard to stamp duty on orders given by farmers on dairy company returns. The charge of 5/ on such orders had been a cause of great trouble and dissatisfaction in dairying districts. It had never been intended that small orders from dairy farmers should he so heavily taxed. The Minister of Finance replied tr.tft he had undertaken to consider the matter.