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Tuesday, December 19, 1972
The stock market experienced a boom in 1971/72 when the yield from
the duty jumped to $92 million, about three-and-a-half times the previous
year's figure.
The current financial year 1972/73 has seen another unprecedented
Contract Note Duty collected during the first
boom on our stock market.
eight months of the year (April to November) totalled $196 million
More
than twice the amount received in the whole of 1971/72.
Monthly receipts from Contract Note Duty during the current financial
year have exceeded the amount received for the whole of the 1968/69 financial
year in every case, the smallest monthly collection so far in 1972/73 being
$11 million for April.
Highest Monthly Figure
The $50 million collected in the month of November included $3.7
million for the single day of November 11, these being the highest monthly
and daily figures to date.
Most Contract Note Duty is paid by stock brokers in respect of
transactions effected through their exchanges; the remainder comes from
private deals.
The Government has two tax inspectors attached to each stock exchange
to see that there is no evasion of the stamp duty by brokers, and inspections
of company records are also carried out from time to time with the same object.
The usual way for brokers to pay Contract Note Duty is to stick one or
more adhesive stamps of the appropriate value on both Bought Notes and Sold Notes;
but for some of the larger stock exchange transactions and for all private deals,
the documents must be stamped at the Stamp Duty Office of the Inland Revenue
Department.
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