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GAZETTE
JUNE 1992
June, 1992. Any documents stamped
after 30 September will be charged
interest and penalties from the actual
date of execution.
Revised Stamp Duty Regime
The Finance Act, 1991 substantially
amended the collection, enforcement
and penalty provisions in stamp
duty. As a result stamp duty must be
paid within 30 days of the execution
of a document. Failure to pay the
duty within time can lead to
proceedings by the Revenue
Commissioners to compel payment.
In addition late payment of duty is
penalised as follows:-
• a fixed sum penalty of £20, plus
• interest at 1.25 per cent per
month or part of a month from
the date of execution, plus
• a penalty of 10 per cent of the
duty where a document is
stamped between 1 and 6 months
late;
• a penalty of 20 per cent of the
duty where a document is
stamped between 6 and 12
months late, and
• a penalty of 30 per cent of the
duty where a document is
stamped at any later time.
Application of revised regime to
pre-1 November, 1991, documents
In general the revised stamp duty
regime applies only to documents
executed on or after 1 November,
1991. However, in the case of
documents executed before that
date, the interest and penalties for
late payment do apply from 1
November, 1991. The duty payable
on these documents, therefore,
will be charged interest at 5 per
cent per annum up to 31 October,
1991, and the revised provisions
will apply thereafter. All of these
documents which are now
unstamped are already liable to the
10 per cent of duty penalty plus
interest charges. After 1 May this
penalty will increase to 20 per cent
and to 30 per cent on 1 November,
1992.
Example of operation of penalties and amnesty
This example of a document executed prior to 1 November, 1991 will help to
illustrate the effect of these penalty provisions and how the amnesty would
apply:
Date of execution of document: 1 November, 1990.
Duty payable: £3,000
(a) If the document is presented for stamping on 5 May, 1992 the following
interest and penalties would be payable:
Fixed sum penalty
£
10.00
Interest at 5 per cent per annum
from 1 November 1990 to 31 October, 1991:
150.00
Interest at 1.25 per cent per month
from 1 November, 1991 to 5 May, 1992:
262.50
Additional penalty - 10 per cent of duty;
300.00
Total penalties
722.50
All penalties would be waived under the amnesty.
(b) If the document is presented for stamping on 2 September, 1992 the
following interest and penalties would be payable:
Fixed sum penalty
£
10.00
Interest at 5 per cent per annum
from 1 November 1990 to 31 October, 1991:
150.00
Interest at 1.25 per cent per month
from 1 November, 1991 to 2 September, 1992:
412.50
Additional penalty - 20 per cent of duty:
600.00
Total penalties
1,172.50
In this case the amnesty will remit the interest and penalties as follows:
Interest from 1 November 1990 to
£
31 May, 1992 - remitted in full.
Interest at 1.25 per cent per month
from 1 June, 1992 to 2 September
180.00
- payable:
fixed sum penalty
20.00
Additional penalty of 20 per cent
of duty
remitted to a penalty of 10 per cent of duty:
300.00
Total penalties
500.00
Amount of penalties remitted by amnesty:
£1,172.50 - £500.00
=
£672.50.
(c) If the document is presented for stamping on 1 November, 1992 the
following interest and penalties would be payable:
Fixed sum penalty
£
10.00
Interest at 5 per cent per annum
from 1 November, 1990 to 31 October, 1991:
150.00
Interest at 1.25 per cent per month
from 1 November, 1991 to 1 November, 1992:
487.50
Additional penalty of 30 per cent of duty:
900.00
Total penalties
1,547.50
Amnesty does not apply.
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