MORTGAGES AND STAMP DUTY

Evening Post, Volume CVIII, Issue 50, 27 August 1924, Page 4

MORTGAGES AND STAMP DUTY

The Hon. O. Samuel rendered a useful service by trie resolution 'which he submitted to the Legisla* tiyb ■ Council on Thursday last in. favour of exempting mortgages from stamp duty. .From the early days of New Zealand the practice had been, he said, to exempt mortgages, and he found the principle running through- our legislation fight do^'n to the time of the Great Waiv The necessity which the war laid' upon the Government of get-j tirig revenue wherever if could resulted _in a departure from that principle, but Mr. Samuel argued that' as that necessity has passed the old exemption should be restored. • He might have strengthened his argument by pointing out that even when, the war, enforced this form of taxation, the Finance Minister and the Legislature sought to soften the blow by putting/the tax upon the mortgagee. Presumably, at any rate, this was their intention when-they made the mortgagee primarily liable for the tax, but the ! Courts soon decided that this primary, liability of the mortgagee -did not prevent hinrfrom passing it on' to the mortgagor, and like-all other mortgagees the Government's lending Departments: had doubtless assumed' this privilege. Whatever ' may'have been the benevolent intentions towards the "under-dog" on the part, of the proposers ofthq tax, it wsis the under-dog that boretho burden'from the outset.

_ Aud now that the war is. over, is it not time.that the under-dog v?&s given a spell? Whether the mortgage tax—and • with the mortgage tax came, a £ax on .transfers and releases of mortgages—be regfirdecl

as-a tax on necessity" or a tax on industry, the Hou. Mr. Samuel's case for a reversion to the previous practice of exemption appears to be a strong one. But the motion was not pressed to a division -owing to the contention of, the Attorney-Gen-eral that-as a matter, of finance the question was'beyond the jurisdiction of the Legislative Council. The point has nevertheless been -well advertised, : and will- doubtless receive the careful attention of the Finance. Minister, who, as Sir Francis Bell said, is now making concessions in taxation in various directions. In view of tlie ■heavy obligations', that must be met there is a severe limit to these concessions, and the ultimate reductions can only be made after a careful balancing of many conflicting and in themselves meritorious ( claims. But, though Sir Francis Bell took care to guard himself and his colleague by a reference to this aspect of the case, it is satisfactory that among the meritorious claims he included the exemption for which the Hon. Mr. 'Samuel had pleaded. ' •