AMENDMENT OF THE STAMP ACT.

Otago Daily Times, Issue 12445, 30 August 1902, Page 6

AMENDMENT OF THE STAMP ACT.

The Government lias brought down again this year, but in a somewhat ■amended form, the Bill that was before Parliament last session for the amendment of ths ijtamp Aot. The measure aims at the prevention of the evasion of stamp duty iu the case of transfers of shares in mining companies. This ohject is sought to be achieved by the introduction, if the Bill becomes law, of a system of collecting the duty by means of stamped contract notes instead 6f, as at present, by means of stamped transfers. It also proposes that ( iti substitution for the existing prohibition of the practice by a seller of signing transfers in blank, the seller of any shares iu a mining company ill respect of which there is a liability shall be entitled to demand in writing from the 1 buyer the name of the person on whose account the shares are purchased, and that, iu default of compliance with this demaud within two diiys—last year's Bill proposed that the period of grace should be three days,—the seller may. insert the buyer's name in the transfer as transferee. In oiie or two points of detail this year's Bill is an improvement uiwn last year's measure. It contains, besides, additional features of distinct importance. One of its new provisions is that a contract for the sale of any equitable estate or interest in any property shall be charged with the same acl valorem duty as would be payable upon mi actual conveyance oil sale of tho estate, interest, ■or property. Then there is a lengthy provision which elaborately proposes to render transactions between relatives liable to duty. We cannot quote the section of the Bill relating to the matter.- it is far too long, Its gist, however, is that where any of the parties to a transaction are connected by blood or marriage, then, if the object of -such transaction is " by any means, method, or device to cause one or more of such parties to be benefited olit of tile property or by means of the moneys of any other or others of such parties without tho immediate payment in money of the full value of such benefit to such first-mentioned party of parties," the same duties shall be payable by the persons benefited as would be payable under "The Deceased Persons' Estates Duties Act, 1881." The aim, it will be •seen, is to stop the evasion of stamp duty by dispositions of property during tiie lifetime of the owner. A further provision is that, every debenture that is issued by any company, association, or person shall (unless it is expressly exempted from stamp duty) be chargeablo wiili duty as if it were a promissory note.