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{\nofwords1837}{\nofchars9117}{\*\company Pacific Legal Information Institue}{\nofcharsws10907}{\vern24689}}\widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\hyphcaps0\formshade\horzdoc\dgmargin\dghspace180\dgvspace180 \dghorigin1440\dgvorigin1008\dghshow1\dgvshow1\jexpand\viewkind4\viewscale100\pgbrdrhead\pgbrdrfoot\splytwnine\ftnlytwnine\htmautsp\nolnhtadjtbl\useltbaln\alntblind\lytcalctblwd\lyttblrtgr\lnbrkrule\nobrkwrptbl\snaptogridincell\allowfieldendsel\wrppunct \asianbrkrule\rsidroot2890262\newtblstyruls\nogrowautofit \fet0{\*\ftnsep \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid14292682 \chftnsep \par }}{\*\ftnsepc \pard\plain \ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\insrsid14292682 \chftnsepc \par }}{\*\aftnsep \pard\plain \ql 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Tuni_Beddoes_v_Attorney_General}TUNI BEDDOES & JACINTA BEDDOES v ATTORNEY GENERAL \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 {\*\bkmkend Tuni_Beddoes_v_Attorney_General} \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 High Court Civil Jurisdiction \par }\trowd \irow0\irowband0\lastrow \ts20\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid14292682\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalt \clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2448\clshdrawnil \cellx2340\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth6408\clshdrawnil \cellx8748\pard \ql \li0\ri0\nowidctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0\pararsid160527 {\fs24\lang2057\langfe1033\langnp2057\insrsid14292682\charrsid14292682 26 April, 3 May, 2001 \cell }\pard \ql \li4320\ri0\nowidctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin4320\pararsid14292682 {\fs24\lang2057\langfe1033\langnp2057\insrsid14292682\charrsid14292682 HBC 261/00S\cell }\pard \ql \li0\ri0\widctlpar\intbl\aspalpha\aspnum\faauto\adjustright\rin0\lin0 {\fs24\lang2057\langfe1033\langnp2057\insrsid14292682\charrsid14292682 \trowd \irow0\irowband0\lastrow \ts20\trgaph108\trleft-108\trftsWidth1\trftsWidthB3\trftsWidthA3\trautofit1\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tblrsid14292682\tbllkhdrrows\tbllklastrow\tbllkhdrcols\tbllklastcol \clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth2448\clshdrawnil \cellx2340\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth6408\clshdrawnil \cellx8748\row }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 {\i\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \par Stamp duty \endash conditional exemption from second mortgage \endash land secured by first mortgage - further mortgage necessary to construct first home -}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 whether mortgagor entitled to exemption for second mortgage drawn up to satisfy Consumer Credit Act 1999 requirements \endash purpose of exempting provisions of Stamp Duties Act to provide an incentive to first owner/occupiers and mortgagors \endash purpose of}{\i\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 Consumer Credit Act to further protect consumers \endash whether Consumer Credit Act a barrier to exemption under Stamp Duties Act - Stamp Duties Act ss1 (1)(b) and 2(a)(ii) \endash Consumer Credit Act \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 The Plaintiffs purchased a piece of undeveloped land in September, 1998, and to finance their purchase the Plaintiffs mortgaged the land to a b ank. The mortgage secured present and also further advances yet to be made.}{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 The Commissioner of Stamp Duties conditionally exempted the Plaintiffs from stamp duty under the provisions of Part III Section 1(1)(b) and 2(a)(ii) of the Stamp Duties Act.}{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 One and a half years later, the Plaintiffs decided to proceed to construct the house and sought a further $70,000.00, which had to be secured. Under the Consumer Credit Act 1999 the old form mortgage document was no longer acceptable for mortgages granted after its commencement, thus the Plaintiffs executed a new mortgage. The Plaintiffs applied for con ditional exemption from stamp duty for the second mortgage, but the Commissioner refused the application on the grounds that a first mortgage was already exempted. She required the Plaintiffs to either execute a variation to their existing mortgage, which would then be granted exemption, or they have to be satisfied with the exemption already granted.\~Plaintiff}{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 s counsel submitted that the second mortgage was itself }{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 the only or principal or primary security}{ \fs24\lang2057\langfe1033\langnp2057\insrsid14292682 '}{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 , alternatively, the second mortgage }{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 secures further \'85 advances of moneys due on account current}{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 '}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 since it secured a further advance made by the Bank. The Court reconciled the purposes of both legislation, and found that the Consumer Credit Act could not prejudicially affect purchasers from the exempting provisions of the Stamp Duties Act for their first home. The Court found that while for reasons of convenience, tidiness and clarity the Commissioner may not wish to see a proliferation of conditionally exempt mortgages, convenience was not a sufficient ground for excluding a second mortgage document from the exempting provisions of the Stamp Duties Act. The Court concluded that the reality was that the second mortgage in respect of the acquisition by an owner/occupier of a first home.\~ It granted the declaration sought. \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 Held \endash }{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 The Consumer Credit Act, whose main purpose is to extend further protection to consumers, was not intended to prejudicially affect aspiring home owning mortgagors who wish to raise a further sum to construct their first home, by excluding that further loan from the exempting provisions of the Stamp Duties Act. There is nothing in the Stamp Duties Act restricting the exception to only one mortgage document. \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 [Note, although the Defendant appealed, the appeal was discontinued as s45(1) of the Stamp Duties Act states that the decision of the High Court is final.] \par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \par }\pard\plain \s16\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \fs24\lang3081\langfe3081\cgrid\langnp3081\langfenp3081 {\b\lang2057\langfe3081\langnp2057\insrsid2890262\charrsid14292682 Case referred to in Judgment \par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 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\cellx1440\clvertalt\clbrdrt\brdrtbl \clbrdrl\brdrtbl \clbrdrb\brdrtbl \clbrdrr\brdrtbl \cltxlrtb\clftsWidth3\clwWidth7308\clshdrawnil \cellx8748\row }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \par Scott, J}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid2890262 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682\charrsid14292682 \par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \f40\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 In these proceedings begun by way of Originating Summons issued in June 2000 the Plaintiffs seek a declaration that they are entitled to be granted conditional exemption from stamp duty in respect of a mortgage lodged by them with the Commissioner of Stamp Duties on 23 March 2000. \par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \~ \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 Two affidavits were filed:}{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682\charrsid14292682 \par }\pard \ql \fi-776\li1496\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1496\itap0\pararsid14292682 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 (i)}{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 Tuni Beddoes, in support, 26 June 00; \par (ii)}{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 Usenia Losalini, (Commissioner of Stamp Duties) in answer, 21 July 00. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \~ \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 Written submissions were also filed by counsel:}{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682\charrsid14292682 \par }\pard \ql \fi-1080\li1800\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin1800\itap0\pararsid14292682 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 (i)}{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 Plaintiff, 12 September 00; \par (ii)}{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 Defendant, in answer, 23 October 00; \par (iii)}{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 }{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 Plaintiff, in reply, 1 November 00. \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \~ \par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \f40\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 The relevant facts are not in dispute.\~ The Plaintiffs decided to buy a piece of land on which to build themselves a home.\~ On 9 September 1998 they purchased a piece of undeveloped land which is comprised in crown lease 13432 at Waqadra, Nadi.\~ In order to finance their purchase the Plaintiffs mortgaged the land to the Bank of Hawaii.\~ Application was made to and granted by the Commissioner for the mortgage (455634-Exhibit C to the supporting affidavit) to be conditionally exempted from stamp duty under the provisions of Part III {\*\bkmkstart s1_1_b_Stamp_Duties_Tuni_Beddoes_v_AG} Section 1(1)(b) {\*\bkmkend s1_1_b_Stamp_Duties_Tuni_Beddoes_v_AG}and {\*\bkmkstart s2_a_iii_Stamp_Duties_Tuni_Beddoes_v_AG}2(a) {\*\bkmkend s2_a_iii_Stamp_Duties_Tuni_Beddoes_v_AG} (ii) of the Stamp Duties Act (Cap 205) as amended by the Stamp Duties (Amendments) Act 1982. \par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \~ \par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \f40\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 By March 00 the Plaintiffs were in a position to proceed with the construction of the house on their piece of land.\~ They obtained a further loan of $70,000 from the Bank of Hawaii which loan had, of course, to be secured. \par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \~ \par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \f40\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 As will be seen from the original mortgage 455634 it secured not only moneys already advanced by the Bank to the Plaintiff but also secured further advances yet to be made.\~ In these circumstances there was, at first sight, no need for a further mortgage to be granted and executed in respect of the second loan.\~ There was however a difficulty presented by the Consumer Credit Act 15/1999 which had by then come into force. \par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \~ \par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \f40\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 One of the consequences of the {\*\bkmkstart Consumer_Credit_Act_Tuni_Beddoes_v_AG}Consumer Credit Act 1999 {\*\bkmkend Consumer_Credit_Act_Tuni_Beddoes_v_AG} was that the old form of mortgage document was no longer acceptable for mortgages granted after its commencement.\~ The Plaintiffs}{\f0\lang2057\langfe1033\langnp2057\insrsid14292682 '}{\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 legal adviser, I believe correctly, took the view that a second mortgage document would have to be executed, one complying with the requirements of the new Act.\~ A copy of the second mortgage dated 16 March 00 is Exhibit D to the supporting affidavit. \par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \~ \par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \f40\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 On 16 March the Plaintiffs applied for conditional exemption from stamp duty for the second mortgage (Exhibit F).\~ On 31 March the application was refused.\~ The requisition (Exhibit G) was endorsed by the Commissioner: \par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \par }\pard\plain \s18\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 Return, Applicant has already been granted conditional exemption from stamp duty.\~ They are therefore liable to pay stamp duty in this case}{ \fs24\lang2057\langfe1033\langnp2057\insrsid14292682 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 . \par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \f40\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 As is clear from her letter of 14 June (Exhibit I) and paragraph 14 of her affidavit the Commissioner}{\f0\lang2057\langfe1033\langnp2057\insrsid14292682 '}{\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 s view is that only one loan document may be granted exemption under the Stamp Duties Act.\~ Accordingly, the Plaintiffs have a choice.\~ They can either submit a variation to their existing (i.e. original) mortgage which would then be granted exemption or they have to be satisfied with the exemption already granted.\~ The Commissioner is not prepared to grant exemption to two mortg ages given by the same mortgagor. \par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \f40\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 It was not disputed by Mr. Singh that Part III Section 2(a)(ii) applies to the Plaintiffs and therefore the only question is whether the second mortgage presented by the Plaintiffs to the Commissioner falls within Part I II Section 1(1)(b), whether, in other words it is: \par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 \par "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 A mortgage which is the only or principal or primary security for the payment or repayment of moneys or which secures further or future advances of moneys due on account current}{ \fs24\lang2057\langfe1033\langnp2057\insrsid14292682 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 . \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \f40\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 My initial reaction was that the second mortgage was not }{\f0\lang2057\langfe1033\langnp2057\insrsid14292682 "}{\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 the only or principal or primary security}{ \f0\lang2057\langfe1033\langnp2057\insrsid14292682 "}{\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 for the Plaintiff}{\f0\lang2057\langfe1033\langnp2057\insrsid14292682 '}{ \f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 s loans in view of the pre-existing mortgage but Mr. Parshotam argued that the pre-existing mortgage was irrelevant since the second mortgage was itself }{ \f0\lang2057\langfe1033\langnp2057\insrsid14292682 "}{\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 the only or principal or primary security}{\f0\lang2057\langfe1033\langnp2057\insrsid14292682 "}{ \f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 for the repayment of the loan in respect of which it had been granted. Alternatively, he suggested that the second mortgage }{\f0\lang2057\langfe1033\langnp2057\insrsid14292682 "}{ \f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 secures further \'85 advances of moneys due on account current}{\f0\lang2057\langfe1033\langnp2057\insrsid14292682 "}{\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 since it secured a further advance made by the Bank to the Plaintiffs for the purpose of building of their house. \par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \par In response to these arguments Mr. Singh, who appeared to have made very little effort at all to master his brief could only submit that exemption may only be granted in respect of one mortgage for one mortgagor but }{ \i\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 why}{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 this should be the case he was unable to say.\~ And neither did the written submiss ion filed on behalf of the Defendant answer the question. \par \par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \f40\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 In my view it is important to bear in mind the purpose of the provision under consideration.\~ That purpose is\~clearly set out in the Objects and Reasons to the Stamp Duties (Amendment) Bill 1982:}{\f0\lang2057\langfe1033\langnp2057\insrsid2890262 \par }\pard \s15\ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14292682 {\f0\lang2057\langfe1033\langnp2057\insrsid14292682\charrsid14292682 \par }\pard\plain \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \~}{ \fs24\lang2057\langfe1033\langnp2057\insrsid14292682 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 this Bill is intended to give effect to the proposal outlined in the Budget Speech to provide an incentive to owner/occupiers by abolishing stamp duty in respect of purchases of first homes and mortgages in respect of first homes.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid14292682 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \f40\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 As has already been noted, had it not been for the passage of the Consumer Credit Act 1999 there would have been no need for a second mortgage to be executed.\~ I do not believe that it was intended that the Consumer Credit Act, one of the main purposes of which was to extend further protection to consumers, should prejudicially affect aspiring home owning mortgagors who wish to raise a further sum by excluding that further loan from the exempting provisions of the Stamp Duties Act. \par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \~ \par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \f40\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 While I accept that the Commissioner, for r easons of convenience, tidiness and clarity might not wish to see a proliferation of conditionally exempt mortgages I do not think that convenience is a sufficient ground for excluding a second mortgage document from the exempting provisions of the Stamp Duties Act. \par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \~ \par The Stamp Duties Act is a taxing statute.\~ As is well known, the construction of such statutes will not seldom involve looking at the substance of the transaction in question rather than its technicalities.\~ Usually such an approach ends up be nefitting the Commissioner but I see no reason why the adoption of the approach should be excluded merely because it results in a benefit to the taxpayer.\~ To quote Megarry J in }{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 {\*\bkmkstart Sargaison_v_Roberts_Tuni_Beddoes_v_AG}Sargaison v Ro{\*\bkmkend Sargaison_v_Roberts_Tuni_Beddoes_v_AG}berts}{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 [1969] 1 WLR 951; (1969) TC 612:}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2890262 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682\charrsid14292682 \par }\pard \ql \li720\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin720\itap0\pararsid14292682 {\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 I appreciate that what I have to do is to construe the words used and not to insert words which are not there or to resort to a so-called equitable construction of a taxing statute.\~ But even when I have g iven full weight to this consideration I think I am entitled to distinguish between the substance of a transaction and the machinery used to carry it through \'85\'85. where the technicalities of \'85 conveyancing and land law are brought into juxtaposition with a \'85 taxing statute I am encouraged to look at the realities at the expense of the technicalities.}{\fs24\lang2057\langfe1033\langnp2057\insrsid14292682 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \par }\pard \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \~ \par }\pard\plain \s15\ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \f40\fs24\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\f0\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 In the present case I am satisfied that the reality is that the second mortgage is a mortgage in respect of the acquisition by an owner/occupier of a first home.\~ I can find nothing in the Stamp Duties Act restricting the exception to only one mortgage document.\~ The problem is in any event transitory since most people wishing to acquire a home will have obtained their entire loan either before or after the co mmencement of the 1999 Act. \par }\pard\plain \ql \li0\ri0\nowidctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0\pararsid14292682 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \~ \par I grant the declaration sought. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 \par }{\i\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 Declaration granted. \par \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid2890262\charrsid14292682 Marie Chan }{\fs24\lang2057\langfe1033\langnp2057\insrsid1972231\charrsid14292682 \par }}