STAMP DUTY

New Zealand Mail, Issue 1802, 19 September 1906, Page 20

STAMP DUTY

PUBLIC GIFTS

DEPARTMENTAL ASSESSMENTS. An important question in regard to the payment of stamp duty on gifts of property for the public benefit by generous donors came before the House on September 14. The Public Petitions Committee recommended that Messrs Bunny and T. W. McDonald, trustees of a public gift from Mr Eiddiford, bo refunded the sum of £l3O stamp duty paid by them. Mr Wilford explained that £IOOO worth of property was vested by Mr Riddifoixl in the petitioners, residents of the Lower Hutt, for drillshed purposes. The conveyance was tendered to the Stamp Office for stamp purposes. In the case of a private individual, he would have had to pay 15s per £IOO duty, or in all £7 10s, but because this was a gift to the people, and because Mr Riddiford was a man owning more than £20,000 worth of land, the Stamp Department imposed a duty of 13 per cent., or £l3O, which the trustees had to pay out of their own private pockets. It was a regrettable fact that in this State there were few gifts to the public by wealthy citizens, but if they had to pay 13 per cent, on every gift so made, it would hardly he an inducement to them to make any donations to the public. The Solici-tor-General, in giving an opinion on this question, said: ‘‘Although I am of opinion that this matter is not free from doubt, I believe the duty is payable.” Now, he took it that the Solici-tor-General, who was acting on behalf of the Crown, if he had to construe an act of Parliament which was revenueproducing, and he had a doubt on the matter, he would rather err on the sido of the Government. Since the opinion of the Solicitor-General had been given, decisions had been given—ono in re Adams, by the Chief Justice.

and one in re Reid, by Mr Justice Cooper, and also an English, decision by three Judges, showing that where & gift was a gift for public purposes, it was not dutiable within the meaning of this clause under which duty waa claimed by the Crown. If these decisions had been available at the time the Solicitor-General gave his opinion, he would not have flpnstrued it as the learned Judges had construed the act. He hoped that a sum would be placed on the Estimates to recoup the trustees for the payment they had made. The Commissioner of Stamps said the Government would go into the recommendations made by committees on all petitions. If they were satisfied of the merits of the recommendation in this instance, it would be given effect to.