Section 25 Denotion of duty by adhesive stamps

Summary

This section provides that the 50 cent duty (30 cent for bills drawn or after 6 December 2007 and before 15 October 2008) on a bill of exchange may be denoted by an adhesive stamp. It further provides that the adhesive stamp must be cancelled by the person who signs the bill or note and that it must be cancelled before the signatory hands it on. The adhesive stamp may only be purchased from the Stamp Duty Office, Dublin Stamping District (see section 135 for the address and contact numbers of that office).

Details

(1) The duty on a bill of exchange may be denoted by means of an adhesive stamp. Where an adhesive stamp is used that stamp must be cancelled by the person who signs the bill. The adhesive stamp is generally affixed before execution of the bill. If not affixed before execution it must be affixed and cancelled before the signatory hands on the bill.

(2) Any person who issues, endorses, transfers, negotiates, presents for payment, or pays any bill which is liable to duty but which has not been duly stamped is liable to a penalty of €630.

(2) Any person who takes or receives a bill which is chargeable to duty in payment or as a security, or by purchase or otherwise, which has not been duly stamped will not be entitled to recover on or make the bill available for any purpose.

(3) A person to whom an unstamped bill is presented for payment (say, a bank) may affix a 50 cent stamp to it. On cancelling the stamp so affixed, the bank may then pay the sum mentioned in the bill and either—

• charge the duty in account against the person who drew the bill, or
• deduct the duty from the sum mentioned in the bill.

(3) A bill to which the 50 cent stamp has been affixed and cancelled by the person to whom it was presented unstamped is deemed to be a valid bill.

(4) The person who drew up the bill is still liable for the appropriate penalties.

Relevant Date: Finance Act 2014