TRANSFER. Any request or au thority to the purser or other officer of any mining company, conducted on the cost book system, to enter or register any transfer of any share, or part of a share, in any mine, or any notice to such purser or officer of any such transfer . . . 0 0 6 And see Section 110, as follows : " (1) The duty upon a request or authority to the purser or other officer of a mining company conducted on the cost book system to enter or register the transfer of any share or part of a share of the mine, and the duty upon a notice to such purser or officer of any such transfer, may be denoted by an adhesive stamp, which is to be cancelled by the per son by whom the request, authority, or notice is written or executed.
" (2) Every person who writes or executes any such request, authority, or notice, not being duly stamped, and every purser or other officer of any such company who in any manner obeys, complies with, or gives effect to any such request, authority, or notice, not being duly stamped, shall incur a fine of twenty pounds." With regard to the duty upon instruments of transfer of shares, stock and debentures, the following circular was issued by the Inland Revenue, 29th April, 1910 : " It has been brought to the notice of the Board of Inland Revenue on several occa sions that instruments of transfer of shares, stock, and debentures, have been presented to be stamped with the fixed duty of 10s., although upon inquiry they were found to be properly liable to the ad valorem duty.
" The Board believe that, in the majority of these cases, the mistake has been due to a misapprehension of the requirements of the law. They accordingly desire to make the provisions of the law which affect this matter more generally known, in order to protect those who are responsible for seeing that the transfers are properly stamped, more especi ally the registering officers of public com panies and municipal corporations, from penalties which may be inadvertently in curred.
" Instruments of transfer are properly stamped with the fixed duty of 10s. when the transaction falls within one of the fol lowing descriptions : (a) Vesting the property in trustees on the appointment of a new trustee, or the retirement of a trustee.
(b) A transfer, as for a nominal con sideration, to a mere nominee of the transferor where no beneficial interest in the property passes.
(c) A transfer by way of security for a loan ; or a retransfer to the original transferor on repayment of a loan.
(d) A transfer to a residuary legatee of stock, etc., which forms part of the residue divisible under a will.
(e) A transfer to a beneficiary under a will of a specific legacy of stock, etc.
(f) A transfer of stock, etc., being the property of a person dying intestate, to the party or parties entitled to it.
" In cases (b) and (c) a certificate setting forth the facts of the transaction, signed by both the transferor and the transferee, should be required.
" As errors are believed to occur, especially in cases of transfers made in distributing the estate of a deceased person, the Board wish to point out that the fixed duty does not apply to transfers made for this purpose except when they fall within one of the descriptions (d), (e) and (I), mentioned above. It follows, therefore, that any transfer of stock, etc., which is made by the executors of a will in discharge, or partial discharge, of a pecuniary legacy, is chargeable with ad valorem duty at the rate of 10s. per cent. on the amount of the legacy, or of such part of it as is discharged by the transfer, and this amount should be set forth in the instrument as the consideration for the transfer.
" Similarly if a transfer is made on a sale, or in liquidation of a debt, or in exchange for other securities, ad valorem duty is pay able on the value or agreed value of the consideration.
" Under the provisions of the Finance (1909-10) Act, 1910, a transfer of any shares, stock or marketable security by way of gift iutervivos is chargeable with ad valorem stamp duty at the same rate as if it were a transfer on sale, with the substitution of the value of the stock or security for the considera tion. The transfer must be adjudicated.