MORTGAGE DUTIES

Evening Post, Volume CVIII, Issue 100, 24 October 1924, Page 6

MORTGAGE DUTIES

QUESTION OF LIABILITY.

The Appeal Court yesterday considered an involved argument as to liability ] for stamp duties on mortgages, the parties being Frederick Hall, of Giaborne, painter, and the Minister of Stamp Duties, counsel boing Sir John Findlny, K.G., and Mr. Johnson for the appellant, and Mr. M. Myers, K.C., and Mr. A. Fair for tha Minister. The appellant was only nominally in that position, he having behind him the As- | sociated Banks of New Zealand, who desired a statement as to principle. The action was in the form of appeal against assessment of stamp duty. The case showed that Hall and others gave securities to the Bank of New Zealand covering advances which in 1923 reached a total of £86,807. Two of the securities were given in October, 1915, before any duty was payable on mortgages, and other securities followed after a duty became payable under the Finance Act, which came into force in November, 1915. The last security was given in July,' 1923, and was the transaction in question. Sir John Findlay said the feature was that the Commissioner was here trying to make liable for stamp duty a mortgage debt which at the time it was created was not dutiable. ,' It was only after July, 1923, that the Commissioner woke up and claimed payment for securities eight years old. Mr. Myers : "It was only then we found .out how much had been advanced." Sir." John Findlay said the Commissioner took the view that the securities rendered them liable for duties on amounts beyond the amounts for which they nominated security. The question was whether they were liable for ""% beyond the amount specified to the Stamp Department as security for a. certain sum. The Commissioner claimed duties on £48,807, or alternatively £29,000 odd, while the valuo of security was considerably lower then either , amount. Appellant claimed V- ille °"'y had t<> Pay on the amounts winch the .mortgages secured. Decision was reserved.