Stamps Administration
Separate Charges on Instruments
Separate Charges: Instruments involving multiple distinct matters are charged separately for each matter. If an instrument is made for several considerations, each consideration is charged separately.
Residential and Non-Residential Properties: For transactions involving both residential and non-residential properties, the stamp duty is calculated separately for each type based on the consideration attributable to each.
Facts and Circumstances
Disclosure Requirements: All facts and circumstances affecting the liability and amount of stamp duty must be fully disclosed in the instrument. If impractical, additional statements must be provided.
Penalties for Misrepresentation:
Fraudulent or negligent misrepresentation incurs penalties. If discovered post-Finance Act 2008, penalties are increased.
Voluntary
Dispositions: Instruments operating as voluntary dispositions must be reported, or penalties apply.
Penalties for Non-Compliance
Returns Incorrect or late returns incur penalties. Failure to deliver returns within specified times also results in penalties.
Expression of Doubt:
Accountable persons can express doubt about stamp duty application by lodging a letter detailing their doubt within 30 days of instrument execution. This can delay penalties if genuine doubts are raised and handled timely.
Calculating Ad Valorem Duty:
Duty on foreign currency transactions is calculated based on the currency’s value in the State’s currency at the transaction date.
Duplication
Duplicates or counterparts of an instrument need proper stamping to be valid.
Late Stamping:
Unstamped or insufficiently stamped instruments can be stamped post-deadline with interest charges. Payment of this interest is denoted on the instrument.
Returns and Valuations
Incorrect Returns
Incorrect valuations in voluntary dispositions incur surcharges. If a discrepancy exceeds specific thresholds, penalties increase significantly.
Unreasonable Apportionment: Inaccurate apportionment of residential considerations in sales or leases results in additional surcharges. The purchaser or lessee can recover part of these surcharges from the vendor or lessor.
Incorrect Certificates
Incorrect Certification: Providing incorrect certificates is penalized. E-stamping regulations govern the electronic processing and certification of instruments.
E-Stamping System: The Commissioners regulate the operation of the e-stamping system, including the requirement to deliver information electronically.
Assessments and Appeals
Commissioners’ Assessment: The Commissioners assess stamp duty based on returns. Incorrect assessments are corrected with substituted assessments.
Appeal Rights: Aggrieved accountable persons can appeal assessments or decisions within 30 days. Appeals on valuation must follow specific guidelines.
Enforcement and Inspections
Evidence: Instruments not duly stamped are inadmissible in civil proceedings except in criminal cases or civil actions by the Commissioners to recover stamp duty.
Inspections: The Commissioners can inspect records to ensure compliance. Failure to comply with inspection requests incurs penalties.
Records Retention
Accountable persons must retain records for six years. Failure to retain records incurs penalties.