Stamp-Tax May be Imposed on Savings

Sun (Auckland), Volume III, Issue 748, 22 August 1929, Page 6

Stamp-Tax May be Imposed on Savings

WITHDRAWAL RECEIPTS LIABLE FOR DUTY (The SUN'S Parliamentary Reporter J • WELLINGTON, Wednesday. j Confirmation of rumours that j there was to be charged a stamp duty of twopence on all withdrawal slips presented at private savings banks was sought in the House of Representatives this afternoon by Mr. S. G. Smith (New Plymouth), who asked the Minister of Finance, the Rt. Hon. Sir Joseph Ward, an urgent question on the subject. It was pointed out that the law required the stamping of the slips. Mr. Smith's question related to amounts of £2 or over. He said that the proposal, if carried into effect, would, in the majority of cases, inflict a special tax on children and thrifty workers, who made use of private savings banks. Would the Minister investigate the subject with a view to having the proposal quashed? The Minister replied that the withdrawal form in use by most of the savings banks was in the form either of a cheque or receipt, each of which documents was. of course, liable to a stamp duty of twopence. A withdrawal form that was not in effect a cheque or a receipt was not liable to stamp duty, it was understood that it had not been the practice of all savings bmiks to require withdrawal forms in the form of receipts or cheques to be stamped, but the Stamp Duties Department was recently asked to advise whether a particular form in use was not liable to stamp duty as a receipt, with the result that all of the sayings banks had now been advised that withdrawal forms that were in effect receipts or cheques ought to be stamped. MANAGER’S VIEWS INCREASING BANK’S WORK UNFAIR TO CUSTOMERS “Our contention is that the Auckland Savings Bank has been operating for 82 years, and we always understood that savings banks were exempt from stamp duty,” said Mr. Clem Bartley, manager of the Auckland Savings Bank this morning, when discussing tlie proposed stamp duty of 2d. “Yet,” he continued, "“we must admit we cannot find anything about it 1 n ,/‘h e Stamps Act or the Banks Act. “No mutual or Government savings banks in any part of the world is required to pay stamp duty. If the proposal becomes law it would be most unfair to our customers. We are out to help the small man and to encourage thrift.” Mr. Bartley mentioned that if withdrawal receipt forms were required to be stamped it w-ould doubly increase the work of the bank's staff. For instance, if a customer wished to withdraw £3 he could do so by filling in tw-o slips for 30s each, and thus avoid the duty. To date the Auckland Savings Bank has given away £IOB,OOO to various charities and organisations. Mr. Bartley stated that his board had not yet had an opportunity to discuss the question, and the remarks he had made were his own personal observation. The next meeting of the board would be held on September 5. The whole question could very easily b.e put beyond doubt by Parliament slightly amending the present Stamp Duties Act. If the department persisted in its present attitude and imposed a hardship on the bank’s depositors, the board of the Auckland Savings Bank would most probably adopt a new withdrawal form. Nothing has yet been said about the Government Savings Banks, and whether they will be exempt from the proposed duty. It is understood, however, that they will also have to pay if the proposal becomes law.