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Adjudication Stamps

duty, instrument, chargeable, stamped, commissioners, opinion and stamp

ADJUDICATION STAMPS. Where a doubt exists as to the stamp duty with which any instrument is chargeable, the opinion of the Board of Inland Revenue may be obtained as to the proper stamp. The instrument itself, and also a sufficient abstract thereof, must be lodged with the Controller of Stamps and Stores, Somerset House, and a separate abstract must be lodged with each deed. No document can be received for adjudication until it has been executed by all necessary parties. A security for advances without limit cannot be the subject of adjudication. Where it is claimed that collateral, auxiliary, additional, or substituted security duty only is payable, the principal or primary security must be produced before adjudication. In the case of a transfer of mortgage, the amount of interest in arrear (if any) at the date of transfer must be stated.

The regulations of the Stamp Act, 1S91, with regard to these stamps are as follows : " Section 12. (1) Subject to such regula tions as the Commissioners may think fit to make, the Commissioners may be required by any person to express their opinion with reference to any executed instrument upon the following questions : (a) Whether it is chargeable with any duty ; (b) With what amount of duty it is chargeable.

" t2) The Commissioners may require to be furnished with an abstract of the instrument, and also with such evidence as they may deem neces sary, in order to show to their satis faction whether all the facts and circumstances affecting the liability of the instrument to duty, or the amount of the duty chargeable thereon, are fully and truly set forth therein.

" (3) If the Commissioners are of opinion that the instrument is not chargeable with any duty, it may be stamped with a particular stamp denoting that it is not chargeable with any duty.

" (4) If the Commissioners are of opinion that the instrument is chargeable with duty, they shall assess the duty with which it is in their opinion chargeable, and when the instrument is stamped in accordance with the assessment it may be stamped with a particular stamp denoting that it is duly stamped.

" (5) Every instrument stamped with the particular stamp denoting either that it is not chargeable with any duty, or is duly stamped, shall be admissible in evidence, and available for all purposes notwithstanding any objection relating to duty.

" (6) Provided as follows : (a) An instrument upon which the duty has been assessed by the Commissioners shall not, if it is unstamped or insufficiently stamped, be stamped otherwise than in accordance with the assess ment ; (b) Nothing in this Section shall extend to any instrument chargeable with ad valorem duty, and made as a security for money or stock without limit ; or shall authorise the stamping after the execution thereof of any instrument which by law cannot be stamped after execution ; (c) A statutory declaration made for the purpose of this Sec tion shall not be used against any person making the same in any proceeding whatever, except in an inquiry as to the duty with which the instrument to which it re lates is chargeable ; and every person by whom any such declaration is made shall, on payment of the duty chargeable upon the instrument to which it relates, be relieved from any fine or disability to which he may be liable by reason of the omission to state truly in the instrument any fact• or circumstance required by this Act to be stated therein." By Section 13 any person who is dissatis fied with the assessment of the Commissioners may, within twenty-one days after the date of the assessment, and on payment of duty in conformity therewith, appeal to the High Court. If the assessment is confirmed, the court may make an order for payment to the Commissioners of the costs incurred by them in relation to the appeal.

By Section 74, s.s. 2 of the Finance (1909 10) Act, 1910, notwithstanding anything in Section 12 of the Stamp Act, 1891 (quoted above), the Commissioners may be required to express their opinion under that section on any conveyance or transfer operating as a voluntary disposition inter vivos, and no such conveyance or transfer shall be deemed to be duly stamped unless the Commissioners have expressed their opinion thereon in accordance with that Section. (See INCRE MENT VALUE DUTY.)