Amendment
of Ordinance No. 8 of 1921, Schedule, Heading
No. 24 (2).
Amendment
of Ordinance No. 8 of 1921, Schedule, Heading No. 24 (5).
Amendment
of Ordinance No. 8 of 1921, Schedule, Heading No. 29 (2).
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10. Sub-heading (2) of Heading No. 24 in the Schedule to the Stamp Ordinance, 1921, is amended by the deletion of all the words in the third column and by the substitu- tion therefor of the following :-
Where the term is not defined at all, or is uncertain,
or is so defined as not to exceed one year: 25 cents for every $100 or part thereof of the rent for one year.
Where the term specified in the lease exceeds one year but does not exceed three years: 50 cents
for every $100 or part thereof of the rent for one year.
Where the term specified in the lease exceeds three years: $1 for every $100 or part thereof of the rent for one year.
11. Sub-heading (5) of Heading No. 24 in the Schedule to the Stamp Ordinance, 1921, is amended by the deletion of all the words in the third column and by the substitu- tion therefor of the following:
"The same duty as on a lease for the residue of the term surrendered, any price or conside- ration for surrender being regarded as pre- mium."
12. Sub-beading (2) of Heading No, 29 in the Schedule to the Stamp Ordinance, 1921, is amended by the deletion of all the words in the second and third columns and by the substitution therefor of the following
(2) Being a collateral or auxi- liary or additional or substi- tuted security (other than a mortage executed in pursu- ance of a duty stamped agree- ment for a mortgage), or being a mortgage executed by way of further assurance, provided in every case that the principal security was duly stamped under sub-head- ing (1).
10 cents for every
$100 or part thereof of the value of the additional or substituted se- curity.
Objects and Reasons,
1. The main object of this bill is to carry out one of the recommendations of the recent Stamp Duties Committee. The opportunity has been taken to make certain other amendments also.
2. The present definition of the term “letter of hypothe- cation" leaves some slight doubt as to whether shares are included, because the words used in the definition are "movable property." Section 2 of this Ordinance amends the definition so as to refer to “goods, shares, or market- able securities."
3. Exemption (b) to Heading No. 16 in the Schedule to the principal Ordinance exempts "trust receipts given to a banker". The intention evidently was to exempt such documents from stamp duty altogether, but it has been suggested that it might be arguable that a trust receipt given to a banker, while not liable to duty as a declaration of trust, is liable to duty as a mortgage, under the provi- sions of section 8 (3) which lays down that an instrument which is chargeable under more than one heading in the Schedule shall be charged under that heading which im- poses the highest duty. Section 3 of this Ordinance accordingly adds to the definition of the term "mortgage words which exclude from the meaning of that term “trust receipts given to a banker.”
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