CO129-469 - Governor Sir Stubbs - 1921 [9-12] — Page 98

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this amendment is that the term market value is not very aspro-

priate to the case of shares in private companies, or even to the

case of shares in public companies which in fact have at the time

no general mrket.

15.

aragraph (j.) inserts certain headings in the schedule to

the principal Ordinance.

of estate duty.

16. The new Heading To.12A, deals with duty on bonds given under

Ordinance c. 16 of 1915, section 11 (2), to secure the payment

In the Stamp Ordinance, 1901, such bonds

were liable to the same duty as mortgages. The effect of the

Stamp Ordinance, 1921, was to render them liable to a fixed duty

of 320. This was a hardship in the case of small estates, and

accordingly, by a regulation made on the 17th June, 1921, it was

provided that such bonds should pay at the same rate ne mortgages,

up to the maximum of $20. It was necessary to fix this maximum

because there is no -ower to increase stamp duties by regulation,

but it seems obvious that such bonds should pay at the same rate

whatever the amount.

The new Heading No. 12A therefore rend-

ers such bonds liable to the same rate of duty as mortgages,

whatever the amount of the bond.

17.

The new Heading 14A provides that if compradore orders are

parsed through a bank they must pay the same duty as cheques.

This is only a revival of the rule which was in force from 1903

to 1921.

18. The new Heading 17A reproduces a regulation which was made

on the 13th May, 1921, except that it provides for the case of

dividend warrants issued before the 13th May, 1921. This case

is not unimportant, because the practice of issuing in coupon

form warrants to receive any dividends that may be declared is

sometimes employed by Chinese

companies.