DUTY ON BONDS.

New Zealand Herald, Volume LXIX, Issue 21153, 9 April 1932, Page 13

DUTY ON BONDS.

TEN PER CENT. STAMP SYSTEM PROPOSED. STATE AND LOCAL BODY. INDUSTRIAL DEBENTURES. THREE (YEARS' OPERATION. [BY TET.EGRAPH. —SPECIAL REPORTER.] WELLINGTON, Friday. As indicated in tho Financial Statement. made to the House yesterday, provision is contained in the National Expenditure Adjustment Bill for tho imposition of a stamp duty of 10 per cent., on receipts of interest from Government and local body securities, and from debentures issued by companies or other corporations The bill applies to the following classy of securities:— (a) Debentures or other securities issued by the Government, including Inscribed Stock. (b) Debentures or other securities issued by the State Advances Superintendent or tho Rural Intermediate Credit Board.. (c) Debentures or other securities issued by any local authority. (d) Debentures or debenture stock issued by any company carrying on business in New Zealand, or by any incorporated society or other corporate body. List of Exemptions. The following classes of securities are exempted:—Treasury bills, Post Office investment certificates, debentures or other securities invested out of any superannuation fund or the National Provident Fund, securities held by the Treasury or any securities that might be exempted bv Order-in-Council. Every interest coupon or interest warrant issued in respect of securities to be taxed under this part of the bill and presented for payment in New Zealand after the passing of the measure shall be charged with a stamp duty at the rate of sixpence for every five shillings or part of five shillings included in the amount of such coupon or warrant. Provision is made for tho collection of duty in cases where interest coupons or warrants are not presented. If any interest payable in New Zealand is paid out of New Zealand, otherwise than pursuant to an expressed contractual right to have the interest so paid, the stamp duty shall be payable on or before the collection of tho amount in New Zealand. Local authorities will also pay duly on monies deposited with them. Transfer of Securities. The duty of twopence prescribed for receipts of over £2 shall not be payable on any coupons, warrants or receipts on which duty is paid under the bill. Where the ownership of any securities has been transferred within six months before March 14, 1932, the Commissioner of Stamp Duties may refund all or part of the stamp duty paid in respect of interest for any period prior to the transfer of securities. No refund shall bo made unless the commissioner is satisfied that the applicant is unablo to recover the amount of the duty from tho former owner of the securities. The amount of any refund allowed may be recovered from the seller of the securities as a debt due by him to the Crown. Local authorities and companies will receive a net duty on interest from their securities after a deduction of 5 per cent. for administrative expenses.

This part of tho bill will apply between April 20, 1932, and March 31, 1935.

POINT OF ORDER RAISED. ETIQUETTE BREACH ALLEGED. EXPLANATION BY MR. LEE. [BY TELEGRAPH. —SPECIAL REPORTER.] WELLINGTON. Friday. A complaint that Mr. J. A. Lee (Labour—Grey Lynn) had failed to rise in acknowledgement of tho receipt of a Message from the Governor-General was made by Mr. H. S. S. Kyle (Government Riccarton) immediately after the National Expenditure Adjustment, Bill was introduced in the House of Representatives to-day. " Point of order," called Mr. Kyle. "I want to draw attention to a breach of Standing Order No. 423 committed by the member for Grey Lvnn." The Standing Order states: "When Mr. Speaker announces the receipt of a Message or Messages from His Excellency the Governor-General, members shall rise in their places in acknowledgement thereof and shall remain uncovered during the reading of such Message or Messages." The Speaker asked Mr. Lee whether lie rose. Mr. Lee : I did not rise. I was attending to something ori my desk at the time and I was on my way np when others were on their way down. The Speaker: I think I have only to draw the hon. member's attention to the matter.