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| Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:-- | Preamble |
| 1. The Acts thirty-first Victoria, chapter nine, ,thirty-third Victoria, chapter thirteen, thirty-seventh Victoria, chapter forty-seven, except section one, and forty-first Victoria, chapter ten, are hereby repealed: Provided always, that all Acts or enactments repealed by any of the said Acts Shall remain repealed, and that all things lawfully done under them or any of them shall remain valid, and all penalties incurred under them or any of them may be enforced and recovered, and all proceedings commenced under them or any of them may be continued and completed under this Act, which shall not be construed as a new law but as a consolidation and continuation of the repealed enactments with and subject to the amendments hereby made. | Acts repealed: 31 V.,c.9; 33 V., c. 13; 37 V., C. 47; 41 V., c. 10. Proviso: saving things lawfully done under them. |
| 2. In this Act the word "Bank" means and includes any chartered bank, and any banking institution, and any branch or agency thereof. | Interpretation, "Bank.". |
| The word "Broker" means and includes any broker or, person by repute doing the business of brokerage. | "Broker." |
| The word "Instrument" means and includes any promissory note, bill of exchange or part thereof, draft or order upon which a duty is payable under this Act. | "Instrument". |
| 3. The duties imposed by this Act shall be duties within the meaning and purview of the Act passed in the now last session, intituled "An Act to provide for the better auditing of the Public Accounts," and the proceeds of the said duties shall form part of the Consolidated Revenue Fund of Canada. | Act 41 V., c. 7, to apply to duties under this act. |
| 4. Upon and in respect of every promissory note, draft bill of exchange for an amount not less than twenty dollars, made, drawn or accepted in Canada, previous to and from and after the passing of this Act, there shall be levied collected and paid to Her Majesty, for the public uses of the Dominion, the duties hereinafter mentioned, that is to say: | The duties. |
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As to interest. |
| 5. Every bill, draft, order or instrument:-- | What shall be deemed instruments liable to duty. |
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Instruments exempted from duty. |
| 6. Every bill of exchange, draft or order drawn by any officer of Her Majesty's Commissariat, or by any other officer in Her Majesty's Imperial or Provincial Service, in his official capacity, or any acceptance or indorsement by such officer on a bill of exchange drawn out of Canada, or any draft of or on any bank payable to the order of any such officer in his official capacity, as aforesaid, or any note payable on demand to bearer issued by any chartered bank in Canada, or by any bank issuing such note under the Act, | |
| chapter fifty-five of the Consolidated Statutes of the late Province of Canada, intituled "An Act respecting Banks and freedom of Banking," shall be free from duty under this Act; and | Con. Stat. Can., c.55. |
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| 7. No duty shall be payable under the Act of the legislature of the late Province of Canada, passed in the session held in the twenty-seventh and twenty-eighth years of Her Majesty's reign, chapter four, or under the Act of the said legislature, passed in the twenty-ninth year of Her Majesty's reign, chapter four, on any promissory note, draft or bill of exchange made, drawn or accepted, upon or after the said first day of February, one thousand eight hundred and sixty-eight; but to all promissory notes, drafts or bills of exchange made, drawn or accepted in the late Province of Canada, or in the Province of Quebec or Ontario, before the said day, and to all offences committed and penalties incurred in respect thereof, the said Acts shall continue to apply. | No duty under certain Acts, on notes, &c., made after 1st February, 1868. |
| 8. Notwithstanding anything in this Act contained, no bill of exchange drawn and payable outside of the Dominion of Canada shall be invalid, nor shall the maker or any owner or holder of any such bill be subject to any penalty in consequence of no stamp or stamps of this Dominion being affixed to such bill. | No duty on bills drawn and payable out of Canada. |
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Exemption of notarial instruments. |
| 10. The duty on any such promissory note, draft, bill of exchange or part thereof, shall be paid by making it upon paper stamped in the manner hereinafter provided, to the amount of such duty, or-- | How the duties shall be paid. |
| By affixing thereto an adhesive stamp or adhesive stamp of the kind hereinafter mentioned, to the amount of such duty, or- | By adhesive stamps. |
| By making the instrument on stamped paper, and, where the amount in the instrument is in excess of the amount represented by the stamp on the instrument, by affixing thereto adhesive stamps for the portion of the duty to which the instrument is liable in excess of what is represented by the stamped paper; | By stamped paper and stamps. |
| In either case the adhesive stamps shall be cancelled by writing thereon the signature or part of the signature or the, initials of the maker or drawer, or of the witness attesting the signature of the maker or indorser of the instrument, or in the case of a draft or bill made or drawn out of Canada of the acceptor or first indorser in Canada, or some integral or material part of the instrument so as (as far as may be practicable) to identify each stamp with the instrument to which it is attached, and to show that it has not before been used, and to prevent its being thereafter used for any other instrument, or-- | Cancelling adhesive stamps. |
| The person affixing such adhesive stamp, or the witness attesting the same shall, at the time of affixing the same, write or stamp thereon the date at which it was affixed and such stamp shall be held primâ facie to have been affixed at the date stamped or written thereon: | The same; |
| And if no integral or material part of the instrument nor any part of the signature or initials of the maker, drawer, witness or acceptor or first indorser or witness in Canada be written thereon, nor any date be so stamped or written thereon, or if the date do not agree with that of the instrument, such adhesive stamp shall be of no avail; and any person wilfully writing or stamping a false date on any adhesive stamp shall incur a penalty of one hundred dollars for each such offence. | Penalty for non-compliance with this section. |
| 11. The stamp or stamps required to pay the duty hereby imposed shall, in the case of any promissory note, draft or bill of exchange made or drawn within Canada, and not made upon paper stamped to the amount of the duty, be affixed by the maker or drawer thereof, and in the case of any draft or bill of exchange drawn out of Canada, by the acceptor | By whom the stamps shall be affixed. |
| thereof or the first indorser thereof in Canada; and such maker or drawer, acceptor or first indorser, failing to affix such stamp or stamps at the time of making, drawing; accepting or indorsing such note, draft or bill, or affixing stamps of insufficient amount, shall thereby incur a penalty; hereinafter imposed; and the duty payable on such instrument, or the duty by | Penalty for default. |
| which the stamps affixed fall short of the proper amount, shall be doubled,--stamps upon the paper being deemed to be affixed thereto for all the purposes of this Act; and any deficiency in the amount of the stamp on the paper may be made up by adhesive stamps. | If the paper be stamped. |
| 12. If any person in Canada makes, draws, accepts, indorses, signs, becomes a party to, or pays any promissory note, draft or bill of exchange, chargeable with duty under this Act, before the duty (or double duty as the case may be) has been paid, by affixing thereto the proper stamp or stamps, (or by making it on stamped paper or by both) such person shall thereby incur a penalty of one hundred dollars, and save only in the case of payment of double duty, as in the next section provided, such instrument shall be invalid and of no effect in law or in equity, and the acceptance, or payment, or protest thereof, shall be of no | Penalty for not affixing the proper stamps at the proper time. |
| effect; and in suing for any such penalty, the fact that no part of the signature of the party charged with neglecting to affix the proper stamp or stamps, or his initials is or are written over the stamp or stamps affixed to any such instrument, or that no date, or a date that does not correspond with the time when the duty ought to have been paid, is written or marked on the stamp or stamps, shall be primâ facie evidence that such party did not affix it or them as required by this Act: but no party to or holder of any such instrument shall incur | Presumption in suits for penalty. |
| any penalty by reason of the duty thereon not having been paid at the proper time, and by the proper party or parties, provided that at the time it came into his hands it had affixed to it stamps to the amount of the duty apparently payable upon it, that he had no knowledge that they were not affixed at the proper time, and by the proper party or parties, and that he pays the double or additional duty as in the next section provided, as soon as he acquires such knowledge. | Proviso in favour of innocent holders. |
| 13. Any holder of such instrument, including banks and brokers, may pay double duty by affixing to such instrument a stamp or stamps to the amount thereof or to the amount of double the sum by which the stamps affixed fall short of the proper duty, and by writing his initials on such stamp or stamps, and the date on which they were affixed; and where, in any suit or proceeding in law or equity, the validity of any such instrument is questioned by reason of the proper duty thereon not having been paid at all, or not paid by the proper party, or at the proper time, or of any formality as to the date or erasure of the stamps affixed having been omitted, or a wrong date placed thereon, and it appears that the holder thereof, when he became such holder, had no knowledge of such defects, such instrument shall be held to be legal and valid, if it shall appear that the holder thereof paid double duty, as in this section mentioned, so soon as he acquired such knowledge, even although such knowledge shall have been acquired only during such suit or proceeding; and if it shall appear in any such suit or proceeding to the satisfaction the court or judge, as the case may be, that it was through mere error or mistake, and without any intention to violate the law on the part of the, holder, that any such defect as aforesaid existed in relation to such instrument, then such instrument or any indorsement or transfer thereof, shall be held legal and valid, if the holder shall pay the double duty, thereon as soon as he is aware of such error or mistake; but no party who ought to have paid duty thereon shall be released from the penalty by him incurred as aforesaid. | Innocent holder of unstamped or insufficiently stamped note, &c., may make it valid by payment of double duty, &c. |
| 14. The provisions whereby validity may be given to bills of exchange, drafts and promissory notes when drawn or made within Canada, by the payment of double duty thereon, shall for the same purposes and to the same effect, extend to such instruments when drawn or made without Canada but payable in Canada, when stamps to the amount, of double duty upon such instruments shall be affixed and cancelled in the same mode as stamps in payment of double duty are affixed and cancelled to such instruments when made or drawn within Canada. | Provisions for validity by payment of double duty extended to bills,&c., drawn out of but payable in Canada. |
| 15. It shall be sufficient in the case of any bill of exchange, draft or promissory note drawn or made without Canada but payable within Canada, in order to comply with the law, for any bank, broker, holder or party to such instrument, at the time of the acceptance or indorsation thereof, to affix thereto and cancel the proper single stamps therefor; and the date of cancellation to be marked thereon shall be the true date of such cancellation, and such date need not agree with the date of the instrument. | When single duty may be paid on such bills, &c. |
| 16. In the case of a suit to recover upon, or a defence of set-off upon a lost or destroyed bill of exchange, draft or promissory note, where there is no evidence that such instrument had been properly stamped, and when the validity of the instrument in question is contested on the ground of insufficient stamps or want of stamps, the Court having cognizance of the suit may, at any stage of the proceeding, in order to give validity to the same, allow double stamps, for the requisite amount to be affixed to the record, or to any other paper or proceeding in the cause, and cancelled by or on behalf of the party interested in maintaining the validity of the instrument, plaintiff or defendant, as the case map be. | As to suits in which lost or destroyed bills, &c., form the ground of complaint or defence. |
| 17. After a note or instrument requiring to be stamped under this Act has been settled or paid, no penalty shall be enforced against any party thereto or against any person or corporation who had been the holder thereof, by reason of such note or instrument having been insufficiently stamped, or the stamps thereon insufficiently effaced; unless it be proved, that the party from whom a penalty is demanded was aware before, or at the date of the maturity of such note or instrument, of the defect in the stamping thereof, or in the effacing of the stamps thereon, and did not thereupon affix double stamps thereto, in the manner provided by this Act. And the reception of such note or instrument by any party to such note or instrument, or by the holder thereof, whether such holder be a corporation or not, or by any employee or agent of such party or holder, shall not be evidence sufficient to justify a conviction or such penalty. | In what case only penalty shall be enforced as to unstamped bills, &c., after payment or settlement thereof. |
| 18. In the case of a bill of exchange, draft or promissory note found amongst the securities of a deceased person, unstamped, it shall be sufficient, in order to give validity thereto, for the executor or administrator, to affix and cancel double stamps thereon, with the date of such cancellation and with the initials of the party cancelling the same. | As to bills, &c., found among effects of deceased persons. |
| 19. Every instrument liable to stamp duty shall be admitted in evidence in any criminal proceeding, although it may not have the stamp required by law impressed thereon or affixed thereto. | Unstamped bills, &c., admissible in evidence in criminal cases. |
| 20. The Governor in Council may, from time to time, direct stamped paper to be prepared for the purposes of this Act, of such kinds and bearing respectively such device as he thinks proper, and may defray the cost thereof out of any unappropriated moneys forming part of the Consolidated Revenue Fund; but the device on each stamp shall express the value thereof,--that is to say the sum at which it shall be reckoned in payment of the duties imposed by this Act: | Stamped paper may be prepared. |
| 2. And the Governor in Council may, from time to time, make and repeal or alter regulations for redeeming spoiled stamped paper, by the issue of new stamped paper or stamps of equal value in exchange therefor; but no such stamped paper shall be so redeemed unless when presented in quantities at one time representing a value of not less than five dollars. | Redemption of spoiled stamps or stamped paper. |
| 21. The Governor in Council may, from time to time, direct stamps to be prepared for the purposes of this Act, of such kinds and bearing respectively such device as he thinks proper, and may defray the cost thereof out of any unappropriated moneys forming part of the Consolidated Revenue Fund; but the device on each stamp shall express the value thereof, that is to say, the sum at which it shall be reckoned in payment of the duties hereby imposed. | Adhesive stamps: device to express value. |
| 22. The Minister-of Inland Revenue may appoint any Postmasters, Collectors of Inland Revenue, or other officers of the Government to be the distributors of stamps and stamped paper, under this Act, and may authorize any other person to purchase stamps from such distributors to sell again and the Governor in Council may fix the remuneration to be allowed to such distributors, and the discount to be made to persons so purchasing to sell again; but such discount shall in no case exceed five per cent. on the value of such stamps, and shall not be allowed on any quantity less than one hundred dollars. | Sale and distribution of stamped paper and stamps. |
| 23. The Governor in Council may make such further regulations as he may deem necessary for carrying this Act in effect, and may, by an Order in Council, declare that any kind or class of instruments as to which doubt may arise, is or is not chargeable with any and what duty under this Act according to the true meaning thereof; and any Order in Council made under this Act maybe explained, amended or repealed by any other such order of later date; and an Order in Council under this Act shall be published, and may be proved in the manner provided by the "Act to amend consolidate the Acts respecting the Customs" as to Orders Council under that Act. | Governor in Council may make regulations to meet doubtful cases. |
| 24. If any person forges, counterfeits or imitates, or procures to be forged, counterfeited or imitated, any stamp or stamped paper, issued or authorized to be used for the purposes of this Act, or by means whereof any duty here by imposed maybe paid, or any part or portion of any such stamp,--or knowingly uses, offers, sells or exposes to sale any such forged, counterfeited or imitated stamp, --or engraves, cuts, sinks or makes any plate, die or other thing whereby to make or imitate such stamp or any part or portion thereof, except by permission of the Minister of Inland Revenue, or some officer or person who, under an Order in Council in that behalf, may lawfully grant such permission,--or has possession of any such plate, die or other thing, without such permission,--or, without such permission, uses or has possession of any such plate, die or thing lawfully engraved, cut or made,--or tears off or removes from any instrument, on which a duty is payable under this Act, any stamp by which such, duty has been wholly or in part paid,--or removes from any such stamp any writing mark indicating that it, has been used for or towards the payment of any | Punishment for forging stamps or having instruments for forging. |
| such duty -- such person shall be guilty of, felony, and shall, on conviction, be liable to be imprison in the penitentiary for any term not exceeding twenty-one years; and every such | Term of imprisonment. |
| offence shall be forgery, and punishable in the manner in which that crime is punishable by the laws of Canada. | Such offence to be forgery. |
| 25. Notwithstanding anything
herein contained any bank or any broker who makes, draws or issues
or negotiates, presents for payment, or pays, or takes, or receives,
or becomes the holder of any instrument not duly stamped, either
as a deposit, or in payment, or as a security, or for collection
or otherwise, knowing the same not to be duly stamped, and who
does not immediately on making, drawing, issuing, negotiating
or presenting for payment, paying, or taking, or receiving or
becoming the holder such instrument, affix thereto and cancel
the proper stamps within the meaning of this Act, shall incur
a penalty of five hundred dollars for every such offence; and
shall not be entitled to recover on such instrument, or to make
the same available for any purpose whatever, and any such instrument shall be invalid and of no effect in law or equity. |
Penalty on bank or broker making, buying or taking note not duly stamped. |
| 26. If any person wilfully affixes to any promissory note, draft or bill of exchange, any stamp which has been previously affixed to any other, or used for the purpose of paying any duty under this Act, or any other Act, or which has been in any way previously written upon or defaced, such person shall be guilty of a misdemeanour, and shall thereby incur a penalty of five hundred dollars. | Penalty for affixing stamps already used. |
| 27. The penalties hereinbefore imposed shall be incurred in respect of each such promissory note, draft or bill of exchange, on which the duty or double duty hereby imposed is not paid as aforesaid, or to which a stamp previously used has been fraudulently affixed, whatever be the number of such instruments executed, accepted, paid or delivered, or offences committed on the same day; and a separate penalty the full amount shall be incurred by each person committing such offence, whatever be the number of such persons. | Penalty incurred on each instrument, though several be made on the same day. |
| 28. The penalties imposed by the foregoing sections of this Act, shall be recoverable in the manner prescribed by "The Interpretation Act," in cases where penalties are imposed and the recovery is not otherwise provided for. | Recovery of penalties not otherwise provided for. |
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