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188
THE - HONGKONG DAILY PRESS, FRIDAY, APRIL 16TH, 1021.-
HONGKONG LEGISLATIVE
COUNCIL.
(Continued from page 3.)
16. –Clause 41′is meant to fasten and broaden the liability in the case of instru- ments executed in the name of a corporate body or firm. It is intended that criminal liability shall attach, to the corporato: body itself in the former case, and: to: the person appearing to have the manage ment in the latter case, upon mers failure to stamp. In other words, the corporate body in the one ease, and the manager in the other case, will be liable for tho mere omission, apart from any question- of intention to evade or of guilty know ledge, and will be bound to see that the instrument is duly stamped..
Heading No. 26:--Lease - This bead ing practically adepts an average of the United Kingdom rates, but it avoids the complications of those rates.
Heading No, 30:-Mortgage:-The pre cat and the proposed rates are as follows:--
Mortgage
Agreement for
Present. Bill.
Per $100. Per, 8100. 10 centa. 20 cents.
mortgage 10 Collateral security. 5 Extension of time...5...
"of Transfor
mortgages Re-assignment..... artifate of
antisfaction......
Heading No. :-Partnership instru- ment:-This will now include all partner. ship documents, and the duty is being
raised from 85 to 820)
Hending No. 34:-Policy of insur 17. As it is desirable that the onus. should be placed: cxpressly on one side orence:The duty on marine policies, other the other it seems not unreasonable to than hull risks for time, has been raised place it on the party who has both the to 30 cents per $1,000, and the duty on knowledge of the facts and a personal fire and accident policies has been
uniary interest in the restilt of the doubled. elnim or appeal (see clause 42).
if it doen, somon at least of them will be discovered in the discussion of this Bill in Committee of the Council. W also hope that when the Bill is published in the Gazette that the various classes of persons and bodies affected by these duties will consider it as quickly as they can, and will make any representations which they may wish to make at aa. early a date as possible. Any criticisms will be welcomed and will be carefully considered.
|
and in clause ($). In many, ease the stamp duty imposed by this Bill may be paid within seven days after execution, but if the document is to be produced in Court before the expiration of these seven days it must be produced stamped, and is not admissible until it is stamped. In other words, whether the time has come by which the document must be atamped or not, if the person producing it wishes to put it in evidence, or if it But it is hoped that if is to be filed or registered, he must they are going to be made they will be stump it, before he produces, or files, made quickly, so that the passing of their registers it. Bill will not be unduly delayed..
NOVEL CLAUSES.
.
Clause (16) deals with the question of stamping by special leave after the The third general object of the Rin proper time for stamping has expired. is to facilitate the collection of stamp Under the existing law the collector duties, generally, and to prevent evasion, has, in certain cases, power to stamp Under that heading, I would like to after the time has expired, but in other cases it is necessary to apply to the direct attention to certain clauses, some of which I think are novel, at least in Governor-in-Council. This clause givoa this Colony. Clause 10 of the Bill pro- the power in all cases to the collector, vides that. if any minimum amount is but gives an appeal from the collector prescribed below which stamp duty is not to the Governor-in-Council. I think it to be payable, no person is to execute would save time very often if the appli- more instruments than would ordinarily be cation is made first of all to the necessary in order to evade duty by such collector, and if a person is dissatisfied "splitting." The present law provides with his decision he can appeal to the that if a sum of money exceeding $10 is Governor-in-Council, paid the person receiving it must not PROPERTY SALES AND SHARE CONTRACTS. split up that amount into two portions Certain duties imposed by this Bill are if it is substantially one amount, in order new to this Colony, though precedenta 19.-The maximum penalty provided in elduse 40 may seem, high, but the tempta
thereby to evade receipt duty. That for them exist elsewhere. One is head- tions to evasion, and the gain resulting
principle, of forbidding splitting in ordering No. 5 in the schedule: agreement for from continued evasion, will be great in Frants to bearer escape the transfer duty. to evade duty, is now by this clause the sale of property. That does not
Heading No. 1 (5):-Shure contract applied generally. Sub-clause (2) of the
graph 13 above,
18. The power of inspection given by clause. 43 may seem rather wide and severe, but it will probably be used com. paratively seldein and it is considered very desirable to have the power in
reserve.
certain cases.
Heading No. 35:-Power of Attorney:- The duty has been raised from 84 to 86.
Heading "No."41 (1): Transfer of sharea:-The duty has been raised from 10 cents to 30 cents per $100...
Heading No. 41 (2): --Late registration duty-This has been dealt with in para graph 18 above.
Heading No. $1 (5) :—Share warrants to bearer: The duty has been raised from 30 cents to 8 per $100. Share war
same clause is aimed at the same people. apply to goods, or shares, or ships, bat 20.-The Companies (Sale of Shares) [ote:-This has been dealt with in para In some cases, the duty is at the higher it applies to all other properly, and
Ordinance, 1501, Ordinance No. 5 of 1801, which is known as "Keswick's Ordin ance," is repealed in clause 47 (1) because
Heading No. 12-Shippers books, etc This is designed to meet the actual prac: tice of Chinese shippers by river craft and junk.
Heading No. 4-Telegraphic transfer advice:-This has been dealt with in paragraph 14 above.
Heading No.:~Vesting order: - This is treated as a conveyance on sale, as in the United Kingdom.
return-
it does not seem reasonable to collect: under one Ordinance a duty on instru- ments which are made void by another Ordinance. That position would arise if Ordinance No. 5 of 1891 were allowed to stand on the statute book after the intro duction of the new Share Contract Note duty (sce Heading Na.. 42 (5) in the conveyance on sale, as in the United shall be deemed to have committed as found in heading. 41 (5). The scale is $2.
schedule). The Ordinance, in any case, has not justified itself.
1
Heading No. 16: —Foluntary díxpo tina inter vivos:This is treated as a
Kingdom.
23-A table is added of the corres pondence between the clauses of the bill and the provisions of the existing law. REGULATIONS UNDER THE STAMP ORDINANCE.
The following draft regulations made by the Governor in Council under sce 1921, Ordinance were laid on the table.
The adhesive stamps to be used on bills of exchange, circular notes, letters of credit, traveller's cheques, Chinese shippers books and ships receipts (other than bills of lading) shall be overprinted with the letters "BE."
not.
HONGKONG HOTEL GARAGE 1910, Ordinance, No. 16 of 1915, it was on, and 23 of the strap or insince evasion of the duty, or failure to stamp, schedule is divided into two portions caly
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21. The subject of death duties was formerly regulated by the Stamp Ordin- ance, 1901, Ordinance No. 16 of 1901, and. when a new scale of death duties was introduced by the Estate Duty Ordinance, provided that the old scale should apply to the estates of persons dying before the cominencement of the Estate Duty Ordins ance. It seems unnecessary to preserve this.temporary provision any longer. To repeal it is the object of sub-clause (3) of clause 47 of the bill.
22-The following remarks apply to the Schedule to the bill:-
Heading No. 1-Adjudication fee The adjudication fee has been raised from from 8 to 810. The amount of duty involved in an adjudication is usually large.
"The
All instruments relating to land in the New Territories executed in pursuance of the provisions of the New Territories Regulation Ordinance, 1010, shall be exempt from stamp duty.
TEMPORARY REGULATIONS. Cheques stamped before the 14th day of April, 1921, with an impressed. and dated stamp of the value of five cents shall be deemed to have been duly stamp ed if signed before the 30th day of June, 1921.
Certificates to practise during the year 1921, taken out by persons practising at the commencement of the Ordinance, shall bo deemed to have been duly taken out and stamped if taken out and stamped
THE
ATTORNEY-GENERAL'S OUTLINE OF THE
BILL.
rate on the larger amounts and this sub- section probibits any splitting for the the idea is that if an agreement is purpose of evading the higher scale. Of entered into for the future sale or.com- course, it can be done by executing two veyance of property that agreement must or more documents which would pay duty only on the lower scale. That, in future, ay duty. If is is followed by a full will be a criminal offence.. Clause 41 is conveyance then the Conveyance is intended by bronden and fasten the liability in cases of companies and other exempt from duty; if the agreement is
Sub-clause rescinded then the stamp duty is corporate bodies and firms. (1) provides that when an instrumented. which ought to be stamped is
The duty on thare contract notes is stamped, every director and manager also new in this Colony, and is to be offence but, in any case, the company where the amount does not exceed $10,000, itself shall be deemed to have committed and is 25 where it exceeds $10,000. A an offence by the mere failure to stamp similar duty exists in England, and also, The mere fact of failure to stamp if I think, in the Straits Settlements, this section effects what it is intended to though I think in the Straits Settlements effect will render the Company Eable it is Tower. In England-is the United to a fine; the directors and officers will Kingdom-the scale is rather an elaborate also be liable to a fine if it can be shown one, but the duty amounts to 6d. on £100 that they were knowingly parties to the to £1 on Lu,000. Here the scale und Sub-clause (2) contains similar pro- for convenience-$2 and $5 only. vision with regard to firms. If an instru. Bill also provides that on every sale of ment which ought to be stamped is not shares the broker must give a sale con- stamped, and is executed in the name tract note to the purchaser; if he does.
of the firm, every partner and servant not ho commits a criminal offende. of the firm who was knowingly party to the failure to stamp is guilty of an offence,
Another duty is that of certificates to and in any case the person having the management of the firm is made liable practice-Heading No. 15. That is also merely on the ground of failure to stamp, dealt with in Clause 22 of the Bill. These the idea being that he is a manager of certificates must be taken out only by the the firm and it is his duty to see that various classes of persons mentioned in any document executed by the arm pays the section-architects, barrister, dentista, the proper stamp duty.
medical practitioners, chemists, solicitors. Sub-clause (3) is intended to enable They must take out an annual certificate the collector to obtain information as to to practice, for which they must pay 825 the person really liable for the failure to a year. As this Bill will come into force stamp, and it provides that a docu- in the middle of the year, it is proposed ment is not. stamped that ought to be to make regulations giving a certain time stamped the master in the case of a after the law.cornes into force for taking firm and the partners and manager minst cut these certifiontea for 1931, After that, give the collector the fullest information certificates must be taken out before the to enable him to, take proceedings following year commences-in December against such person.
of each year for the following year.
claimed by the collector.
CERTIFICATES TU PRACTICE.
BEARE TRANSFERS.
Tha
There is only one other duty I think
Leading No. 3-Agreement for enle of goods: This duty is new, but the point seems to be a convenient and suit; able one at which to impose a tax, and the yield should be substantial. Agree ments where the value of the goods does not exceed 8100 are exempt. An adhesive
Cheques stamped before the 14th day stamp may be used if the agreement be of April, 1921, with an impressed and stamped before execution by any party dated stamp of the value of five cente, thereto; otherwise, the agreement must be if signed between the let day of July stamped with an over-embossed stung and the alat day of December, 1021, both Section (42) deals with the onus, and Stamping is compulsory..
Heading No. G:--Agreement for the days inclusivo, shall be deemed to have provides that where a person claims that been duly stamped if an adhesive revenue an instrument is not chargeable with cale of property:This has been dealt staing of the value of five cents shall duty or is chargeable with a duty on a which is
H.E. THE OFFICER ADMINISTAZING THE with in paragraph 10 above.
Heading No. 12:-Bill of Eachunge have been affixed thereto before signs. lower scale than the collector claims, the
turo and shall have been effectively anus shall be on such person to establish GOVERNMENT: Share transfer. and Promissory note: The bill "of
cancelled.
such claim. That is new, and does not The ATTORNEY-GENERAL: That refers to exchange and promissory note duty in
seem unreasonable. The facts of the the duty on shares. I have just referred force at present is on a graduated scale. The new rate will be a uniform one of
transaction are more within the low- to one; that is, the share contract pote. ledge of the person concerned than any. The transfer of shares under the bill will 10 cents for every $500. For large
one else, and it seems only, fair that he in future be & cents for every 8100. At amounts this is lower than the "present rate. It is also considerably lower than
should have the onus of establishing the present, the duty is 10 cents a hundred. 1 may say, 50 cents, or per cent, is the rates in force in the United Kingdom within one month after the commence, non-liability to duty, or of less than that the scale of duty payable in the United and Strails Settlemente. The bill of ment of this Ordinance.
Section (3) empowers the collector to duced during the war, but before the.
Kingdom and that is a scale not intro- exchange duty is expressly made to apply to circular notes, letters of credit and
inspect and search and take copies in
war. In a particular heading 41 (1) it ́ The duty on
any case in which he thinks there may is proposed in Committes to alter the travellers cheques."
The ATTORNEY-GENERAL, in moving that be on the premises any books of fifth column so as to read "before execu- choques is raised from 8 cente to 10 cents." A temporary regulation will be made the Bill be read a first time, said: The accounts, or other documents, that may tion in other words, so as to provida allowing the use up to the 30th June of objects of this Bill are three: (1) to intend to show that stamp duty is being that transfers of shares must, os at pre- cheques stamped before a dato to be speci- crease the stamp revenue; (2) to correct evaded. That is new.
sent be stamped before execution. fied in the regulation,
defects in the existing law; and (3) to Section (44) is also new. It provides The most novel feature of the bill is Heading No. 15:-Bill of Lading provide for the collection of stamp duties that any person who falsifies or destroys that dealt with in sub-head 2 of 41– The duty on bills of lading when the more efficiently than before and to books of account shall be deemed to registration duty. This subject is also To that, I think, dealt with in clause 2 of the bill. It is freight is $3 or more is raised from 20. onset certain provisions, aimed at evasion. commit an offence. to 30 cents. For Chinese shippers' books On the question of revenue, sir, I pro there can be no objection. I will refer an attempt to deal with the question of and other ships receipts see Heading pose to say, nothing because your Excel later to a particular heading of duty blank transfers. The use of blank
lency dealt with that point at the last relating to the old registration duty, transfers obviously leads to a great many. No 42 below.
Heading No. 15-Certificate to prac meeting of the Council as Colonial Sec which is also an attempt to close the transfers of shares cscaping daty. Trans
door against evasion.
fers puas from hand to band; they are tise:This is dealt with in paragraph retars on the second points delecta in been have the existing law-defecte -
hat registered, and no doubt the transfor | '11"above-
Heading No. 16-Charter party: The discovered from time to time in the work-
duty is frequently evaded on such trans- duty is raised from 10 cents to 25 cents ing of the existing Ordinance. They are
The only other thing I would like to fers. Section 20 provides that if a for every 8100 of the charter hire
quite numerous, and many of them well- Heading No. 17:Conveyonce on sale known. In many cases the definitions, say on this third object of the Bill is transfer of shares is not registered within The present conveyance duty is 50 cents on which one relies for interpretations that, of course, it is everyone's duty, if one month from the date of transfer, then for every $100. The now schedule keeps of particular sections, are inexact, or the taxes are imposed by the legis it has got to pay an additional registra to this rate for all cases in, which the entirely non-existent; in other cases whole, ature to accept them loyally, and to tion fee of $1 per $100; if not registered amount of value of the consideration does headings of revenus are omitted. For pay them, if not cheerfully, at least within three months, ; six months, 35; not exceed $5,000, but where it exceeds example, it was discovered the other day without attempting to evade them. The one year $10 the object being to induce that figure the new rate will be $3 for that no duty is payable under the exist Government will not hesitate in cases people to register their transfers as soon of deliberate and persistent evasion to as possible so as to oliviate the possibility every $100.
ing law on vesting orders, though a Heading No. 18 Declaration ofvesting order has exactly the same effect ask for imprisonment. Clause (46) pro of transfers taking place which never truat :-The duty on this has been raised
and which therefore may evade 'payment. as convoyance and is trented as a vides for a maximum fine of $10,000, and come to the knowledge of the company from $10 to $20, and the heading is made conveyance under the Stamp Law of the also provides imprisonment for any term to include revocations of trust also United Kingdom... Agreements for the not exceeding one year. We shall not Heading No.19 Deed: The generalalo of property, again, are not subject hesitate to ask for imprisonment where deed duty has been raised from $10 to $20 to any daty, except 81 agreement duty. the stamp duty is deliberately and sys
Heading No. 81-Exchange: The new In England, they are subject to the same tematically evaded. duty is to be the same duty as on a con-ad calorem duty as conveyances. In voyance of the property of the greater many cases the agreement for the sale
duty is a fixed one of property is the only document execut I would like to draw attention, air, of 980'
ed, and the sale goes through without to clause (6) of the Bill; that is a clauso Heading
Exchange contract any daty being paid. Again, certificates which provides that unstamped docus
transfer, b This has been dealt with in paragraph of satisfaction are one way of clearing mente are not to be admissible in evid 19 above
off a mortgage, without paying any duty once in certain criminal proceedings, or There are two exemptions from these are at present, though-ro-assignments, in proceedings before pay arbitrator or payments of transfer duty; ony is a another method of paying off a mortgage, referee, and are not to be registered 9 transfer of shares, on registers which aro do par. Many of these defects have been filed by any corporation or public officer not required by law to be kept within discoverod and ther-re-ramedied, I unless they are stamped. The particular the Colony-As for instance, Straite think in the present bila No doubt the provision. I want to draw attention to Companies and the other in the transier Bill contains defects, and I hope that, is expressed at the end of clauso (1), of altres to bearer
value The, present,..
Heading No :-Foreclosure order This is treated as a conveyance on sale, an in the United Kingdom.
Heading No-25-Godown warrant - Tho duty has been raised from 10 cents
-to-20 cents;
EVERYONE'S DUTY.
UNSTAMPED DOCUMENTS.
of transfer duty. It is proposed-I do not know whether the copies of the Bill sion, or not, but it is proposed to add to before members now contain the provi- Clause further sub-section (6) which will read as follows IN AR
other person any share that is on a Every person who transfers to any share register kept in the Colony must forthwith execute the instrument of