CHAPTER XXII:
STAMP DUTIES

IN considering the imposition of duties it is necessary to
bear in mind that Acts of this character must be strictly
construed according to the natural interpretation of the
words used—in other words, effect must be given to the
intention of the legislature, as that intention is to be gathered
from the language employed, having regard to the context
in connection with which it is employed. The subject, there-
fore, cannot be taxed without clear words for the purpose.
[t rests upon the parties to an instrument and the persons
concerned in the preparation of it, to take care that the law
is not evaded, and s. 5 of the Stamp Act, 1891, imposes a
penalty upon them if there is any neglect to set forth fully and
truly in the instrument all the facts and circumstances
affecting the liability thereof to duty, or the amount of duty
with which it is chargeable. If an instrument is of such
description as to fall under two or more heads of charge, and
consequently may be liable to duty at different rates, it
should be stamped with duty at the highest rate. The most
recent decision on this subject was given in 1908 by the House
of Lords in the case of Speyer Brothers v. The Commissioners
of Inland Revenue (1908), A.C. 92.
Impressed The Stamp Act, 1891, provides that, except where express
and Adhesive provision is made to the contrary, stamp duties for the time
Stamps. being chargeable by law upon any instrument are to be de-
noted by impressed stamps only, and accordingly adhesive
stamps ate only applicable to a few descriptions of instru-
ments. Where the use of adhesive stamps is allowed, the
ordinary stamps for denoting postage and revenue may be
used for an instrument charged with a duty not exceeding
2s. 6d., unless an appropriated stamp is provided, as in
the case of foreign bills or notes. In all cases the adhesive
stamp must be cancelled by writing upon it the name or
initials of the person or firm and the date, or the stamp
must be otherwise effectively cancelled, so as to render it
incapable of further use. The Act also provides that an
instrument containing or relating to several distinct matters
z=