[As REPORTED FROM THE COMMITTEE OF THE WHOLE]

Transcription

1 [As REPORTED FROM THE COMMITTEE OF THE WHOLE] House Of Representatives, 10 November 1971 Words struck out by the Committee are shown in italics within bold round brackets, or with black rule at beginning and after last line; words inserted are shown in roman underlined with a double rule, or with double rule before first line and after Iast line. Hon. Mr Muldoon STAMP AND CHEQUE DUTIES ANALYSIS Title 1. Short Title, commencement, etc. PART I INTERPRETATION 2. Interpretation 3. Meaning of the term "instrument" 4. Instruments written together, or relating to more than one transaction 5. Meaning of the term "executed" 6. Meaning of the term "deed" 7. Meaning of the expression "instru. ment of conveyance" extended 8. Meaning of the term "lease" 9. Licence under Sale of Liquor Act 1962 deemed to be interest in land PART II LIABILITY FOR STAMP DUTY 10. Stamp duty payable 11. No stamp duty payable on certain instruments 12. No stamp duty payable on instruments conveying certain property 13. No stamp duty payable on instruments of conveyance to certain persons 14. No stamp duty payable on leases to certain persons Conueyance Duty 15. Conveyance duty 16. Conveyance by direction of intermediary 17. No conveyance duty payable on certain instruments of conveyancle 18. No conveyance duty payable on certain surrenders of leases and conveyances to charities 19. No conveyance duty on instrument of conveyance executed pursuant to stamped agreernent 20. No conveyance duty payable on more than 1 agreement in respect of the same transaction 21. No conveyance duty on agreement to convey if the instrument of conveyance executed pursuant to it is duly stamped 22. No conveyance duty payable on certain declarations of trust 23. Conveyance duty reduced if gift duty paid on conveyance 24. Conveyance duty reduced on first conveyance of land with new dwellinghouse 25. Agreement to convey on behalf of company to be incorporated Lease Duty 26. Lease duty 27. Duty on lease including chattels, timber, minerals, or other property 28. Lease duty to be computed on goodwill 29. Duty on instruments increasing rent or other consideration under lease Price 406 No

2 2 Stamp a,td Cheque Duties 30. No l'ease duty payable on lease executed pursuant to stamped agreement 31. No lease duty payable on more than 1 agreement to lease in respect of the same transaction 32. No lease duty payable on agreement to lease if the lease executed pursuant to it is duly stamped 33. Duty on leases providing for redetermination of rent 34. Lease duty reduced if gift duty payable on lease 35. Lease duty reduced on first lease of new dwellinghouse Deed I)uty 36. Deed duty 37. No deed duty payable on certain instruments Denoting Duty 38. Denoting duty 39. No denoting duty payable on certain instruments 61. Determination that instrument not liable denoted by impressed stamp 62. Payment of stamp duty denoted by impressed stamp 63. Payment of penalty denoted by impressed stamp 64. Use of prescribed stamp on certain instruments 65. Stamp duty constitutes a debt to the Crown 66. Persons liable for stamp duty 67. Refund of duty on revaluation of consideration in accordance with the outcome of a contingency 68. Refund of duty or penalty on application 69. Unstamped instruments inadmissible in evidence 70. Unstamped instruments ineligible for registration 71. Refunds payable out of Consolidated Revenue Account PART V OBJECTIONS TO ASSESSMENTS PART III VALUATION 40. Value of property as at date instrunnent executed 41. Valuation not to be less han value expressed in instrument 42. Valuation of land 43. Objections to special valuations of land 44. Valuing shares 45. Valuing property subject to a mortgage 46. Apportionment of value 47. Valuation of consideration 48. Valuation by Commissioner PART IV ASSESSMENT AND COLLECTION OF STAMP DUTY 49. Presentation for stamping 50. Time for presentation 51. Stamping otherwise than by presentation 52. Right of Commissioner to hold and impound instruments 53. Requirement that instrument be presented for stamping 54. Determination of liability for stamp duty 55. Notice of assessment 56. Assessment conclusive 57. Penalty for late presen'tation 58. Penalty on unpaid duty 59. Penalty proportionately reduced on reduotion of duty 60. Remission of penalties 72. Objections to assessments 73, Objections against exercise of Commissioner's discretion 74. Stating case for Supreme Court 75. Removal of ase into Court of Appeal PART VI CHEQUE DUTY 76. Interpretation 77. Cheque duty Fayable 78. Rates of cheque duty 79. No cheque duty payable on certain bills 80. Exemption from cheque duty by agreement 81. Cheque duty payable by licensed banks 82. Cheque duty payable by licensed printers 83. Cheque duty payable by other licensees 84. Cheque duty payable otherwise than under a licence 85. Refund of cheque duty 86. Refunds payable out of Consolidated Revenue Account PART VII MISCELLANEOUS OFFENCES 87. Time for laying informations 88. Offence to defraud Crown of duty or penalty payable under this Act 89. Offence to give false information

3 Stamp and Cheque Duties Offence to issue certain shares unless pursuant to duly stamped instrument of nomination 91. Offence to execute instrument of conveyance of shares unless transferee's name entered in instrument 92. Offence for sharebroker not to send particulars of shares sold without instrument of transfer 93. Principal officers of companies committing offences 94. Printing unauthorised inscriptions on bills of exchange PART VIII MISCELLANEOUS PROVISIONS 95. Evidence inconsistent with instrument not admissible to reduce stamp duty 96. Sharebroker may recover duty from purchaser of shares 97. Giving notices 98. Duty recoverable by Commissioner in official name 99. Duty paid under repealed Act 100. Consequential amendments 101. Repeals and revocations Schedules A BILL INTITULED An Act to consolidate and amend the law relating to stamp duties BE IT ENACTED by the General Assembly of New Zealand 5 in Parliament assembled, and by the authority of the same, as follows: 1. Short Title, commencement, etc.-(1) This Act may be cited as the Stamp and Cheque Duties Act ( 2) This Act shall come into force on the lst day of January (3) This Act is hereby declared to be one of the Inland Revenue Acts within the meaning of the Inland Revenue Department Act 1952; and the First Schedule to that Act is hereby amended by omitting the reference to the Stamp Duties 15 Act 1954, and substituting a reference to this Act. PART I INTERPRETATION 2. Interpretation-In this Act, unless the context otherwise requires,- 20 "Adhesive stamp" means an adhesive stamp created under the Post Office Act 1959, other than a special stamp created under section 74 of that Act; and includes an impression made by an automatic stamping machine issued under section 15 of that Act: 25 "Assessment" means an assessment by the Commissioner of stamp duty payable under this Act; and includes any amended assessment or re-assessment:

4 4 Stamp and Cheque Duties "Bill of exchange" means a bill of exchange within the meaning of the Bills of Exchange Act 1908; and includes a promissory note within the meaning of that Act, other than a banknote: "Board of Review" means a Board of Review constituted 5 under the Inland Revenue Department Amendment Act 1960: "Commissioner" means the Commissioner of Inland Revenue as defined in the Inland Revenue Department Act 1952: 10 "Consideration" means valuable consideration in money or money's worth: "Contract note" means a note sent by a sharebroker to his principal or to any other sharebroker, advising him of the sale or purchase of any shares, transferable 15 debenture, debenture stock, note, or other interest in a company, or of the sale or purchase of any bond, debenture, inscribed stock, or other security issued by the Crown or by any local authority, or of the sale or purchase of any unit in a unit trust: 20 "Conveyance" includes the transfer, assignment, surrender, release or other assurance of any property, whether by way of sale, exchange, vesting, order of Court, or otherwise howsoever, from one person, whether as owner of the property, or in the exercise of 25 a power of sale or power of appointment, or by any other means whatsoever, to another person, or to himself in a different capacity; and "to convey" has a corresponding meaning: "The Crown" means Her Majesty in respect of the 30 Government of New Zealand and its dependencies; and includes any officer of the Government acting in his official capacity; and, in relation to any deed or bill of exchange, also includes any public authority: 35 "Impressed stamp" means a stamp created for the purposes of this Act, having such form as the Minister of Finance may from time to time provide by notice in the Gazette, and produced by such machines as may from time to time be used by the Commissioner : 40 "Instrument of agreement to convey" includes any mstrument that constitutes an agreement, or contains an acknowledgment of the existence of an agreement, or contains an offer, or the acceptance of an offer, to convey property by any means whatsoever, and that 45 by section 5 of this Act is deemed to be executed,

5 Stamp and Cheque Duties whether the instrument is conditional or unconditional, and whether or not the instrument is sufficient in itself to bind the person agreeing or offering to convey the property: "Instrument of assignment for the benefit of creditors" means any instrument executed by any person providing or purporting to provide in any way for the distribution of all or any part of his property among all or any of his creditors for the purpose of obtaining a release of the debts due by him to them; and includes any subsequent and supplementary instrument executed by him in favour or at the request of any trustees for the purpose of making the distribution, or otherwise giving effect to the deed of assignment; but does not include any deed of composition under Part XII, or any proposal under Part XV, of the Insolvency Act 1967: "Instrument of declaration of trust" means an instrument creating an express trust or acknowledging the existence of a trust already created, whether the instrument is executed by the creator of the trust or by the trustee, and whether the creator of the trust and the trustee are the same or different persons: "Instrument of nomination of shares" means any instrument whereby- (a) Any person, who by contract or otherwise is entitled to call for the issue or allotment of shares in a company incorporated in New Zealand to himself or to any other person, directs or authorises the company to issue or allot any of those shares to any person other than himself; or (b) Any person, who by contract or otherwise is entitled to the payment of any money by a company incorporated in New Zealand, directs or authorises the company to apply the whole or any part of that money in or towards the consideration for the issue or allotment of shares in the company to any person other than himself: "Insurance", in relation to any policy, includes a policy of assurance: "Land" includes any estate or interest in land, and any mining right relating to land, within New Zealand; and includes any estate or interest in, or mining right relating to, the foreshore, the seabed, the subsoil beneath the seabed, or the waters above the seabed,

6 6 Stamp and Cheque Duties within the territorial limits of New Zealand; and, without limiting the foregoing provisions of this definition, also includes any licence issued under the Petroleum Act 1987, or the Continental Shelf Act 1964, in respect of the continental shelf beyond the 5 territorial limits of New Zealand: "Local authority" means a borough, county, or other body corporate possessing rating powers in New Zealand; and includes any harbour board or other body corporate that is an instrument of local government 10 in New Zealand, whether possessing rating powers or not: "Mining right" means any right, privilege, licence, title, easement, authority, or interest, relating to exploring, prospecting, or mining for, or carrying on any 15 operations for the recovery of, any mineral; and, without limiting the foregoing provisions of this definition, includes- (a) A coal mining right within the meaning of the Coal Mines Act 1925: 20 (b) A mining licence or prospecting licence within the meaning of the Petroleum Act 1937: ( c) Any authority to prospect or mine for ironsands granted by the Minister of Mines pursuant to section 3 of the Iron and Steel Industry Act 1959, and any 25 authority to enter on land given by him pursuant to section 6 of that Act, and any right to prospect or mine for ironsands which by virtue of section 5 of that Act may continue to be exercised as if the said section 3 had not been passed: 30 (d) A mining privilege within the meaning of the Mining Act 1971: ( e) Any licence issued under section 5 of the Continental Shel f Act 1964 to prospect or mine for, or carry on any operations for the recovery of, minerals,- 35 but does not include any licence within the meaning of the Mining Tenures Registration Act 1962 or any renewable lease granted under that Act: "Mortgage" includes any instrument creating any legal or equitable mortgage, charge, or other security for 40 the payment of money owing or to become owing; but does not include any debenture or bond for the payment of money issued by any body corporate:

7 Stamp and Cheque Duties 7 "Partnership" means a partnership within the meaning of the Partnership Act 1908: "Property" means every description of property or proprietary right, and every estate or interest in 5 property, whether legal or equitable, corporeal or incorporeal; and includes goodwill: "Public authority", in relation to any deed or bill of exchange, means the Public Trustee, the Maori Trustee, or any other corporation sole or corporate 10 body that is an instrument of the Executive Government of New Zealand or its dependencies, in so far as the deed or bill of exchange relates to any money or other property held by the public authority on behalf of the Crown; but for the purposes of this 15 definition the Common Funds of the Public Trust Office and the Maori Trust Office are not money or property held on behalf of the Crown: "Rent", in relation to any easement over land, or to any right, privilege, or licence, entitling tile grantee to 20 enter upon land, or to use land, or to take timber, minerals, or other profit from land, means every consideration which would be rent if the easement, right, privilege, or licence were a leasehold interest: "Shares" includes any share in the capital of any com- 25 pany whether incorporated in New Zealand or elsewhere; and includes any share in a building society incorporated under the Building Societies Act 1965, and any share in a Maori incorporation under Part IV of the Maori Affairs Amendment Act 1967; and also 30 includes stock: "Stamp duty" includes conveyance,duty, lease duty, deed duty, and denoting duty, but does not include cheque duty. Cf. 1952, No. 51, ss. 129 (7), 129 (8) ; 1954, No. 52, 35 ss. 2,33 (1), 63,78 (2), (4), 87,90 (2), 94 (1), (2), 99 (1), 100 (4), 105, 113 (2), 120, 150 (2), 152A; 1956, No. 61, s. 63; 1959, No. 30, ss. 67,75 (1) ; 1960, No. 11, s. 2 (1) ; 1961, No. 55, s. 10; 1968, No. 6, s Meaning of the term "instrument"-(1) For the pur- 40 poses of this Act, the term "instrument" includes every writing, wheth,er executed in New Zealand or elsewhere, affecting- (a) Any property situated or to be situated in New Zealand; or

8 8 Stamp and Cheque Duties (b) Any matter or thing done, to be done, omitted to be done, or to be omitted to be done in New Zealand; or (c) Any property situated or to be situated on the continental shelf beyond the territorial limits of New 5 Zealand, but that pursuant to the Continental Shelf Act 1964 is or would be deemed to be situated in New Zealand; or (d) Any act or omission that has taken place or is to take place on the continental shelf beyond the territorial 10 limits of New Zealand, but that pursuant to the Continental Shelf Act 1964 would or will be deemed to have taken place in New Zealand,- but does not include a will or other instrument operating only by way of testamentary disposition, or a bill of exchange. 15 ( 2) For the purposes of stamp duty on any instrument of conveyance of the legal ownership of shares- (a) Shares in a company incorporated in New Zealand shall be deemed to be property situated out of New Zealand if the shares are registered in a branch 20 register kept elsewhere than in New Zealand under any statutory provision, and in other cases shall be deemed to be property situated in New Zealand: (b) Shares in a company incorporated elsewhere than in New Zealand shall be deemed to be property situated 25 in New Zealand if registered in a branch register kept in New Zealand under any statutory provision, and in other cases shall be deemed to be property situated out of New Zealand. Cf. 1954, No. 52, ss. 2, 69 (h), (i) Instruments written together, or relating to more than one transaction-(1) If 2 or more instruments are written together or comprise the same document, each instrument shall be liable individually for stamp duty, and in every other way subject to this Act, as if it were separately written and 35 constituted a separate document. ( 2) If an instrument contains or relates to more than 1 transaction, it shall be liable to stamp duty in respect of each individual transaction, and in every other way subject to this Act, as if a separate instrument had been drawn for each 40 transaction. Cf. 1954, No. 52, ss. 48, 49

9 Stamp and Cheque Duties 9 5. Meaning of the term "executed"-(1) For the purposes of this Act, every instrument shall be deemed to be executed when it is first signed by any one of the parties to it, or, if the party first executing the instrument is a corporation, 5 when it is sealed by the corporation. (2) Notwithstanding anything in subsection (1) of this section, every instrument of agreement to convey shall be deemed to be executed- ( a) I f the instrument itself constitutes the agreement or 10 embodies an agreement already in existence, when the instrument is deemed by subsection (1) of this section to be executed; and (b) In every other case, when the agreement becomes binding on the person offering or agreeing to con- 15 vey, whether by acceptance by the person accepting or agreeing to take the conveyance or otherwise. (3 ) Notwithstanding anything in subsections (1) or (2) of this section,- ( a) Any instrument that relates to any transaction for 20 which the approval, consent, or permission of any Court, Minister of the Crown, or statutory authority is required under any Act or regulations, and that would, were it not for this paragraph, be deemed to be executed, shall not be deemed to be executed 25 until the approval, consent, permission, or statutory authority is given: (b) Any instrument that is an order of Court shall be deemed to be executed when it is made by the Court: (c) Any certificate of title that is an instrument of con- 30 veyance shall be deemed to be executed when it is presented for stamping: (d) Any share warrant shall be deemed to be executed when it is presented for stamping: (e) Any written statement of particulars of a sale of shares 35 required by section 92 of this Act to be presented for stamping shall be deemed to be executed on the date of the sale to which it relates. Cf. 1952, No. 34, s. 40; 1954, No. 52, ss. 2, 21, 79, 85 (4), 93 (2) Meaning of the term "deed"-for the purposes of this Act, the term "deed" includes- ( a) Any instrument of conveyance: (b) Any lease, and any instrument whereby a lease is surrendered, partially surrendered, or its terms are 45 varied: 2

10 10 Stamp and Cheque Duties (c) Any mortgage of land, and any instrument whereby a mortgage of land is discharged, partially discharged, or its terms are varied: (d) Any debenture trust deed, and any instrument whereby a debenture trust deed is released, satisfied, par- 5 tially released or satisfied, or its terms are varied: (e) Any instrument whereby a power of appointment is exercised: (f) Any instrument of agreement for separation between husband and wife: 10 (g) Any instrument constituting or dissolving a partnership, or recording or varying its terms: (h) Any instrument of assignment for the benefit of creditors: (i) Any instrument having the effect of a deed. 15 Cf. 1954, No. 52, ss. 2,88 (1),90 (3),92, 100 (1), (2), 103 (1), 150,151 (1), 152,152 (1) ; 1961, No. 55, S Meaning of the expression "instn,ment of conveyance" extended-for the purposes of this Act, and without limiting 20 the meaning of the term "conveyance" as defined by section 2 of this Act, and the meaning of the term "instrument" as - defined by section 3 of this Act, the expression "instrument of conveyance" shall include the following instruments that are by this section deemed to be instruments of conveyance: 25 ( a) Every instrument of agreement to convey any property shall be deemed to be an instrument of conveyance of the property from the person offering or agreeing to convey to the person accepting or agreeing to take the conveyance: 30 (b) Every instrument of declaration of trust of any property shall be deemed to be an instrument of conveyance of the property from the creator of the trust to the beneficiaries of tile trust: (c) Every instrument creating or agreeing to create a life 35 estate or other legal estate of freehold in land, or creating or agreeing to create any rent charge or similar estate or interest in land, shall be deemed to be an instrument of conveyance of the estate, charge, or interest from the person creating or agreeing to 40 create it to the person in whom it is vested or agreed to be vested:

11 Stamp and Cheque Duties 11 (d) Every instrument effecting or agreeing to effect a partition of land shall, to the extent that the value of the estate or interest of any partitioner in the land would after partition exceed the value of his estate 3 in the land before partition, be deemed to be an instrument of conveyance (of the land) to that partitioner from the other partitioners: (e) Every instrument granting or agreeing to grant any right, privilege, or licence, in relation to any inven- 10 tion, design, or trade mark, or in relation to any work in respect of which copyright subsists, or in relation to any future work in respect of which copyright may subsist, or in relation to any trade secret or secret process, whether in existence at the 15 time of executing the instrument or not, shall be deemed to be an instrument of conveyance of the right, privilege, or licence, from the person granting or agreeing to grant it to the person to whom it is granted or agreed to be granted: 20 (f) Every certificate of title issued on application being made to bring any land under the Land Transfer Act 1952 shall, if the certificate of title is issued in the narne of any person other than the applicant, be deemed to be an instrument of conveyance of 25 the land mentioned in the certificate, from the applicant to the person in whose name the certificate of title is issued: (g) Every certificate of title issued on application being made to bring land under the Land Transfer Act by any person not entitled at law to the land shall, if the certificate of title is issued in the name of that person, be deemed to be an instrument of conveyance of the land to that person: (h) Every share warrant issued under the Companies Act shall be deemed to be an instrument of conveyance of the shares included in the warrant, from the company to the person to whom it is issued: (i) Every instrument of nomination of shares shall be deemed to be an instrument of conveyance of shares 40 from the person directing or authorising the nomination to the person in whose favour it is made:

12 12 Stamp and Cheque Duties (j) Every written statement of particulars of a sale of shares required by section 92 of this Act to be delivered to the Commissioner shall be deemed to be an instrument of conveyance from the seller of the shares to the purchaser of them: 5 (k) Every written statement of particulars of a contract, required under subsection (2) of section 60 of the Companies Act 1955 to be delivered to the Registrar of Companies, shall be deemed to be an instrument of conveyance to the company of the 10 property in consideration for which the shares have been allotted. Cf. 1954, No. 52, ss. 63,64,76A, 78 (1),84,85 (1), (2), 86,90 (1), 91 (1), 93 (1), 94 (3), 95; 1955, No. 63, s. 60 (2) ; 1958, No. 10, s. 2 (2) ; 1961, No. 55, s. 3 (c) Meaning of the term "lease"-for the purposes of this Act, the term "lease" means any instrument whereby at law or in equity- (2) Any leasehold interest in land; or (b) Any easement over land; or 20 (c) Any right, privilege, or licence entitling the grantee to enter on land, to use land, or to take timber, minerals, or other profit from land,- is created or agreed to be created; and includes any instrument by which the rent, consideration, or the value of the 25 lessee's interest in any lease is increased or agreed to be increased. Cf. 1954, No. 52, ss. 105,113,117 (1), Licence under Sale of Liquor Act 1962 deemed to be interest in land-(1) For the purposes of this Act, every 30 licence in force under the Sale of Liquor Act 1962, other than a ship licence or booth licence, shall be deemed to be- (a) An interest in land by way of being an incorporeal hereditament permanently and inseparably appurtenant to the premises for which the licence is in 35 force; and (b) Owned by all persons entitled to tile licensed premises for the like estates and interests which they own at law or in equity in those premises. (2) For the purposes of computing stamp duty, every con- 40 veyance or lease of any premises mentioned in subsection (1) shall be deemed to include a conveyance or lease of the licence in force for those premises.

13 Stamp and Cheque Duties 13 (3) For the purposes of this section, the expression "licence in force" includes any right or expectation of the renewal of the licence, and also the goodwill of the business carried on pursuant to the licence. 5 Cf. 1954, No. 52, s. 62 PART II LIABILITY FOR STAMP DUTY 10. Stamp duty payable-unless otherwise provided by this Act, or by or pursuant to any enactment mentioned in the 10 first Schedule to this Act, or by any local or private Act, stamp duty shall be paid to the Crown on every instrument executed after the commencement of this Act. Cf. 1954, No. 52, ss. 39,173 (1) 11. No stamp duty payable on certain instri,ments-(1) No 15 stamp duty shall be payable on any of the following instru- ments- (a) An instrument by way of security wi,thin the meaning of the Chattels Transfer Act 1924: (b) An instrument of dedication of a highway: 20 (c) A deed of apprenticeship: (d) A charter party: (e) An agreement by a person to answer to another person for the debt, default, or liabillty of a third person: (f) A tribute agreement within the meaning of the Mining 25 Act 1971: (g) A contract note: (h) Any bond, debenture, (inscribed] stock, or other public security issued by the Crown: (i) Any stock issued by the State Advances Corporation of 30 New Zealand: (j) Any stock issued under section 2 of the Finance Act 1964, or under section 4 of the Finance Act 1971: (k) A bond issued under section 129A or section of the Post Office Act 1959 (as inserted by section 4 of 35 the Post Office Amendment Act 1969) ; or an instrument relating only to the repayment of money secured by the bond or to any prize or interest paid under it:

14 14 Stamp and Cheque Duties (1) {A debenture or certijicate of title to) Any debenture 9f stock issued under the Local Authorities Loans Act 1956: (m) A policy or contract of insurance, or a mortgage of the policy, or an instrument discharging, partially 5 discharging, or varying the terms of the mortgage: (n) An instrument effecting a composition under Part XII, or constituting a proposal under Part XV, of the Insolvency Act 1967: (o) An instrument relating only to property in the estate 10 of a bankrupt, or of any insolvent person to whom Part XV of the Insolvency Act 1967 applies, if, after the execution of the instrument the property is or remains at law or in equity the estate of the bankrupt or of the assignee under the bankruptcy, 15 or is or remains affected by a proposal under the said Part XV: (p) The memorandum and articles of association of any company incorporated under the Companies Act 1955: 20 (q) An instrument required for the purposes of any change of name of a company under subsection (2) of section 32 of the Companies Act 1955: (r) An order of Court made under the Companies (Bondholders Incorporation) Act : 25 (s) An order of Court made under the Land Settlement Promotion and Land Acquisition Act 1952: (t) An order of Court made under the Mortgagors and Lessees Rehabilitation Act 1936, or any instrument executed pursuant to such an order for the purpose 30 of varying or replaoing any adjustable security: (u) An instrument required by the State Advances Corporation of New Zealand, or any cooperative rural intermediate credit association established under the Rural Intermediate Credit Act 1927 if the instru- 35 ment relates to an advance made under that Act by the Corporation or the association: (v) An instrument securing or evidencing all or any part of any financial assistance granted by the RehabHitation Board: 40 (w) An instrument of election to which section 74 of the Estate and Gift Duties Act 1968 applies:

15 Stamp a»id Cheque Duties 15 (x) A certificate of title issued under section 151 of the Public Works Act 1928: (y) A power of attorney for the purposes of section 33 of the New Zealand Loans Act 1953, or section 77 of 5 the Local Authorities Loans Act ( 2) No stamp duty shall be paid on any instrument required for any of the purposes of- (a) The Child Welfare Act 1925: (b) Subsection (1 ) of section 6, or subsection (1) of 10 section 7, of the Statutory Land Charges Act 1928: (c) Section 41 of the Wages Protection and Contractors' Liens Act 1939: (d) The Rural Housing Act 1939, by any County Council: (e) The Earthquake and War Damage Act 1944: 15 (f) Section 73 or section 75 of the Fire Services Act 1949: (g) Part II, Part VII, or Part XII of the Shipping and Seamen Act 1952: (h) Section 19 or section 22 of the Hospitals Act 1957: (i) The Family Benefits (Home Ownership) Act 1964: 20 (j) The Social Security Act 1964: (k) Subsection (2) of section 96 of the Rating Act 1967: (1) The Domestic Proceedings Act Cf. 1908, No. 2, s. 11; 1925, No. 22, s. 39 (2); 1927, No. 45, s. 72 (1) ; 1928, No. 18, s. 9; 1928, No. 21,s. 151; , No. 27, s. 8; , No. 39, s. 32; 1936, No. 33, s. 74; 1939, No. 27, s. 41 ; 1939, No. 32, s. 5; 1941, No. 25, s. 19 (2) (c);1944, No. 15, s. 25; 1949, No. 18, ss. 73,75; 1952, No. 34, s. 41 (1) ; 1952, No. 49, s. 509; 1953, No. 74, ss. 30 (5), 33; 1954, No. 52, ss. 69 (j), 30 (1), (m), (n), 151 (2) (b), (d), (g), (h), (j), (1), (m); 1955, No. 63, ss. 15 (3), 23 (2), 32 (4); 1956, No. 63, ss. 77 (4), 129; 1957, No. 40, ss. 19, 22; 1959, No. 30, s. 129c; 1964, No. 6, s. 2 (4) ; 1964, No. 32, s. 24; 1964, No. 136, s. 130; 1965, No. 47, s. 32 (2) ; , No. 54, s. 165 (a), (b);1967, No. 123, s. 96 (6); 1968, No. 35, s. 74; 1968, No. 62, s. 129; 1969, No. 39, s No stamp duty payable on instruments conveying certain property-( 1) No stamp duty shall be payable on 40 any instrument of conveyance of- ( a) A policy of contract of insurance; or

16 16 Stamp and Cheque Duties (b) Property held subject to a trust established for the protection of bondholders if the instrument is made by the trustee pursuant to an order of the Bondholders Incorporation Commission, or of the Supreme Court, under the Companies (Bondholders 5 Incorporation) Act ; or (c) Trust funds of a war fund which are transferred by the trustees to the New Zealand Patriotic Fund Board under section 10B of the Patriotic and Canteen Funds Act 1947 ( as inserted by section 10 3 (1) of the Patriotic and Canteen Funds Amendment Act 1949). (2) No stamp duty shall be payable on any instrument of conveyance of the legal ownership of- (a) Property transferable merely by delivery; or 15 (b) A ship or any share in a ship; or (c) Any bond, debenture, (inscribed] stock, or other public security issued by the Crown; or (d) Any steele issued by the State Advances Corporation of New Zealand; or 20 (e) Any stock issued under section 2 of the Finance Act 1964 (; or) or under section 4 of the Finance Act 1971; or (f) A4 debenture or (cenificate of title to) stock issued under the Local Authorities Loans Act Cf. 1908, No. 2, s. 11; , No. 39, s. 32; 1947, No. 63, s. 10B (6) ; 1949, No. 20, s. 3 (1) ; 1953, No. 74, s. 30 (5); 1954, No. 52, ss. 69 (a), (j), (k), (1), 90 (4), 151 (2) (g), (h), (i); 1956, No. 63, s. 129; 1964, No. 6, s. 2 (4) ; 1965, No. 47, s. 32 (2) No stamp duty payable on instruments of conveyance to certain persons-(1) No stamp duty shall be payable on any instrument of conveyance to- (a) The Crown, or to any person directly from the Crown; or 35 (b) The Medical Research Council of New Zealand for the purposes of medical research; or (c) The Vocational Training Council for the purposes of the Vocational Training Council Act 1968; or (d) The manager of a unit trust within the meaning of 40 the Unit Trusts Act 1960 of an interest in that trust; or (e) The New Zealand Milk Board of all or any part of the goodwill of a milk round; or

17 Stamp and Cheque Duties 17 (f) A milk vendor by the New Zealand Milk Board of all or any part of the goodwill of a milk round disposed of by the Board pursuant to any scheme of zoning or variation of such a scheme, to the 5 extent that the consideration for the conveyance is the goodwill owned by the milk vendor in all or any part of another milk round; or (g) Any company by the Rehabilitation Board, its agent, or any discharged ex-serviceman who is a meniber 10 of the company, if the incorporation of the company and the instrument of conveyance were required as conditions to granting financial assistance under the Rehabilitation Act 1941 or the Emergency Forces Rehabilitation Act 1953; or 15 (h) An electric power board from any local authority; or (i) Any local authority from an electric power board. ( 2) No stamp duty shall be payable on any instrument of conveyance of land to- (a) The New Zealand Historic Places Trust for the pur- 20 poses of the Historic Places Act 1954; or (b) The Queen Elizabeth the Second Arts Council of New Zealand for the purposes of the Queen Elizabeth the Second Arts Council of New Zealand Act 1963; or 25 (c) The New Zealand Patriotic Fund Board, or the Canteen Fund Board, for the purposes of using the land conveyed as a home, or for the erection of a home, for bedridden, convalescent, or aged servicemen. Cf. 1925, No. 38, s. 115; 1941, No. 25, s. 19 (2) (c) ; 1947, No. 63, s. 45 (1), (3) ; 1950, No. 20, s. 20 (2) ; 1954, No. 14, s. 22 (1) ; 1954, No. 52, ss. 38, 69 (p) ; 1963, No. 54, ss. 25 (1), 29 (5) ; 1967, No. 53, s. 21 (11) ; 1968, No. 12, s. 26 (2) ; 1971, No. 00, s. 123 (9) No stamp duty payable on leases to certain persons- ( 1) No stamp duty shall be payable on any lease to- (a) The Crown, or to any person directly from the Crown; or (b) The Medical Research Council of New Zealand for 40 the purposes of medical research; or 3

18 18 Stamp and Cheque Duties (c) The Vocational Training Council for the purposes of the Vocational Training Council Act 1968; or (d) Any company by the Rehabilitation Board, its agent, or any discharged ex-serviceman who is a member of the company, if the incorporation of the company 5 and the lease were required as conditions to granting financial assistance under the Rehabilitation Act 1941, or the Emergency Forces Rehabilitation Act 1953; or (e) An electric power board from any local authority; or 10 (f) Any local authority from an electric power board; or (g) The New Zealand Historic Places Trust for the purposes of the Historic Places Act 1954; or (h) The Queen Elizabeth the Second Arts Council of New Zealand for the purposes of the Queen Elizabeth 15 the Second Arts Council of New Zealand Act 1963; or (i) The New Zealand Patriotic Fund Board, or the Canteen Fund Board for the purposes of using the land leased as a home, or for the erection of a home, for 20 bedridden, convalescent, or aged servicemen. ( 2) No stamp duty shall be payable on any lease or licence granted under the Land Act 1948, or on any instrument whereby the terms of any such lease or licence are varied, extended, or renewed. 25 Cf. 1925, No. 38, s. 115; 1941, No. 25, s. 19 (2) (c) ; 1947, No. 63, s. 45 ( 1), (3) ; 1948, No. 64, s. 180; 1950, No. 20, s. 20 (2) ; 1954, No. 14, s. 22 (1) ; 1954, No. 52, ss. 38, 119 (a) ; 1963, No. 54, ss. 25 ( 1), 29 (5) ; 1968, No. 12, s. 26 (2) 30 Conueyance Duty 15. Conveyance duty-(1) Stamp duty payable on an instrument of conveyance shall be a conveyance duty computed on the value of the property conveyed. ( 2) The value of the property conveyed shall be ascertained 35 in accordance with Part III of this Act.

19 Stamp and Cheque Duties 19 (3) Conveyance duty shall be computed at the rate of $1 for each $100, and for such amount as may be less than $100, of the value of the property conveyed; but if the property conveyed by an instrument of conveyance, other 5 than a share warrant issued under the Companies Act 1955, is- (a) A mortgage or debenture, or any money payable or to become payable, or any thing in action, or any interest in a trust fund; or 10 (b) Shares or any right to the issue of shares or any equitable interest in shares; or ( c) A mining right, or any legal or equitable interest in a mining right,- the duty shall be computed at the rate of 40 cents for each 15 $100, and for such amount as may be less than $100. Cf. 1954, No. 52, ss. 66, 73 (2) ; 1961, No. 55, s. 3 (a), (b) 16. Conveyance by direction of intermediary-(1) This section applies to every instrument of conveyance whereby 20 property is conveyed-- ( a) By the direction, at the request, or with the consent of an intermediary who by any means whatsoever has the right to call for a conveyance of the property to himself or to any other person; or 25 ( b) Pursuant to any derivative title obtained by tile person to whom the property is conveyed from or through an intermediary by any means whatsoever. ( 2) Every instrument of conveyance to which this section applies shall recite the fact of the direction, request, consent, 30 or derivative title. (3) Every instrument of conveyance to which this section applies shail, for the purposes of assessing conveyance duty, be deemed to be an instrument of conveyance of the property from the person conveying the property to the intermediary 35 and to be also an instrument of conveyance of the property from the intermediary to the person to whom the property is conveyed. (4) Every person Who executes an instrument of conveyance to which this section applies, but which does not 40 contain the recital required by subsection (2) of this section, commits an offence and is liable on summary conviction to a fine not exceeding $500. Cf. 1954, No. 52, s. 75 (1), (2)

20 20 Stamp and Cheque Duties 17. No conveyance duty payable on certain instruments of conveyance-no conveyance duty shall be payable on any of the following instruments of conveyance: (a) An instrument of conveyance merely by way of security, or an instrument reconveying the property on the 5 discharge of the security: (b) An instrument of conveyance from a trustee to a trustee on the appointment of a new trustee or on the retirement of a trustee: (c) An instrument of assignment for the benefit of credi- 10 tors: (d) An instrument of conveyance of money payable, or to become payable, for the supply of milk, cream, or other dairy produce to a factory: (e) An instrument of conveyance whereby, on the constitu- 15 tion of a partnership, a partner acquires a share in the assets of the partnership in consideration of his services as a partner, or in consideration of any contribution made by him to those assets, if the Commissioner is satisfied that the services are, or 20 the contribution to the assets is, adequate consideration: (f) An instrument of conveyance by a trustee, executor, or administrator, to a beneficiary, devisee, legatee, appointee under a power of appointment, or to a 25 successor on an intestacy, if the Commissioner is satisfied that the property conveyed is that to which the beneficiary, devisee, legatee, appointee, or successor is entitled under the trust, will, or intestacy, or, if being substituted for the property to which 30 he is so entitled, is not of more value; but if the Commissioner is of the opinion that any substituted property is of more value, conveyance duty shall be payable to the extent that the value of the substituted property is more than the value of the 35 property to which the beneficiary, devisee, legatee, appointee, or successor is entitled under the trust, will, or intestacy: (g) An instrument of conveyance necessary to vest shares, or the right to the issue of shares, in any person who, 40 by virtue of his holding other shares transferred to him by a duly stamped instrument of conveyance, is entitled to have the first-mentioned shares, or the right to the issue of shares, vested in him. Cf. 1954, No. 52, ss. 69 (b), (c), (d), (o), 97, 150 (1), 45 (3), 152; 1966, No. 31, s. 5

21 Stamp and Cheque Duties No conveyance duty payable on certain surren(lea of leases and conveyances to charities-no conveyance duty shall be payable on any instrument of conveyance to the extent that the instrument- 5 (a) Is a surrender of lease in consideration of the grant of a new lease or new leases of the land comprised in the lease surrendered; or (b) Creates a charitable trust, or establishes any society or institution exclusively for charitable purposes; or 10 (c) Conveys any property on charitable trust, or to any society or institution established exclusively for charitable purposes, in so far as the trust, society, or institution, benefits under the conveyance. Cf. 1954, No. 52, ss. 69 (f), 88 (1), 90 (5) No conveyance duty on instrument of conveyance executed pursuant to stamped agreement-if an instrument of agreement to convey has been duly stamped with conveyance duty, no conveyance duty shall be payable on an instrument of conveyance to the extent that it gives effect to the 20 agreement. Cf. 1954, No. 52, s No conveyance duty payable on more than 1 agreement in respect of the same transaction-if an instrument of agreement to convey property has been duly stamped with 25 conveyance duty, no conveyance duty shall be payable on any other instrument of agreement to convey to the extent that it relates to the same transaction; but any penalty incurred by default in presenting the first executed agreement for stamping, or in paying the duty payable on it, shall remain 30 payable. Cf. 1954, No. 52, s No conveyance duty on agreement to convey if the instrument of conveyance executed pursuant to it is duly stamped-( 1) If an instrument of conveyance executed 35 pursuant to an instrument of agreement to convey is, together with the agreement, presented for stamping within the required time, and is duly stamped with conveyance duty, no conveyance duty shall be payable on the instrument of agreement to convey to the extent that effect is given to it 40 by the instrument of conveyance.

22 22 Stamp and Cheque Duties Struck Out 1 1 (2) For the purposes of this section, the expression "within the required time", in relation to an instrument of agreement to convey land, means within 6 months from its date of execution, and, in relation to an instrument of agreement to 5 convey other property, means within 3 months from its date of execution. 1 1 New L (2) For the purposes of this section, the expression "within the required time", in relation to an instrument of agreement 10 to convey land, means within 6 months after its date of execution, or, in the case of an instrument executed out of New Zealand, within 6 months after the date of its first receipt in New Zealand after execution; and, in relation to an instrument of agreement to convey other property, means within 15 3 months after its date of execution, or, in the case of an instrument executed out of New Zealand, within 3 months after the date of its first receipt in New Zealand after execution. 11 Cf. 1954, No. 52, s No conveyance duty payable on certain declarations of trust-if the Commissioner is satisfied- ( a) That any trust has been created before or at the same time as any property of the trust was conveyed by the creator of the trust to its trustee; and 25 (b) That an instrument of declaration of trust acknowledging the existence of the trust has been executed within 3 months after the date on which the property of the trust was conveyed, or within such extended time as the Commissioner may 30 consider reasonable in the circumstances of any case,- no conveyance duty shall be payable on the inztrument of declaration of trust to the extent that conveyance duty has been paid on any instrument of conveyance to the trustee of 35 the property of the trust. Cf. 1954, No. 52, s. 90 (3) 23. Conveyance duty reduced if gift duty paid on conveyance--if any conveyance wholly or partly constitutes a dutiable gift of the property conveyed for which gift duty 40 has been paid, or ceases to be payable, or is refunded, under

23 Stamp and Cheque Duties 23 the Estate and Gift Duties Act 1968, the value of the property for which the gift duty has been paid, or ceases to be payable, or is refunded, shall be deducted from the value of the property for which conveyance duty on any instrument of 5 conveyance of the property would, were it not for this section, be payable; and conveyance duty shall be computed only on the remaining value. Cf. 1954, No. 52, s Conveyance duty reduced on first conveyance of land 10 with new dwellinghouse-(1) This section shall apply to any instrument of conveyance of land on which a dwellinghouse is erected, or to any conveyance of land accompanied by the right to require a dwellinghouse to be erected on the land, if the Commissioner is satisfied that- 15 (a) The dwellinghouse, if erected at the date of the conveyance, has not been lived in before that date; and (b) No substantial improvements, apart from the dwellinghouse, and, in the case of a dwellinghouse in a multi-unit building, apart from other dwelling- 20 houses in the multi-unit building, have been erected on or made to the land; and (c) In the case of a dwellinghouse that is a unit of a multiunit building, the conveyance is accompanied by an agreement giving to the person to whom the land 25 is conveyed a right of exclusive use and occupation of that unit; and (d) No reduction of conveyance duty under this section, or of lease duty under section 35 of this Act, has previously been granted in respect of the same 30 dwellinghouse or the right to require its erection; and ( e) I f the dwellinghouse is a unit of a multi-unit building, no reduction of conveyance duty under this section, or of lease duty under section 35 of this Act, has 35 been, or is being, granted to the person to whom the land is conveyed, in respect of any other unit of the same building, or the right to require the erection of any other unit in that building. ( 2) The conveyance duty which would, were it not for this 40 section, be payable on any instrument of conveyance to which this section applies shall, after making any deduction in accordance with section 23 of this Act, be reduced to such amount as shall not exceed the conveyance duty computed on the land value of the land conveyed.

24 24 Stamp and Cheque Duties ( 3) In this section- "Date of the conveyance", in relation to any dwellinghouse means the earliest date on which any instrument of agreement to convey the land on which the dwellinghouse is erected is executed, or, if there 5 is no such instrument, the date on which the instrument of conveyance itself is executed: "Dwellinghouse" means a building erected or to be erected solely as a residence for the exclusive occupation of a single household; and includes any unit 10 of a multi-unit building if the building is, or is to be, erected solely for residential purposes and the unit is, or is to be, for the exclusive occupation of a single household; and also includes a dwellinghouse together with any appurtenances belonging 15 to the dwellinghouse or usually enjoyed with it: "Land value" has the same meaning as in the Valuation of Land Act 1951 (as amended by section 3 of the Valuation of Land Amendment Act (No. 2) 1970). Cf. 1954, No. 52, ss ; 1955, No. 7, s. 2; 1964, 20 No. 73, s. 2 (1) 25. Agreement to convey on behalf of company to be incorporated-if the Commissioner is satisfied that an instrument of agreement to convey any property, duly stamped with conveyance duty as an instrument of con- 25 veyance, has been made for and on behalf of a company about to be incorporated at the date of executing the agreement, the company when incorporated shall, for the purposes of computing the conveyance duty payable on the instrument of conveyance of the property to the company to the 30 extent that the conveyance is pursuant to the agreement, be deemed itself to be the party entitled to the conveyance under the agreement. Cf. 1954, No. 52, s. 83; 1966, No. 29, s. 3 Lease Duty Lease duty-(1) Stamp duty payable on a lease shall be a lease duty computed- (a) At the rate of 40c for each $100, and for such amount as may be less than $100, of- (i) The maximum rent that is or may become 40 payable under the lease in any year; or (ii) If the lease is for a term of less than 1 year, the maximum rent that is or may become payable for that term; and