PART 10 ENFORCEMENT

Overview

In addition to the fact that payment of stamp duties is compulsory (section 2) and that late payment will give rise to interest (section 14) this Part contains a number of provisions which help to ensure that instruments which are chargeable to stamp duty are presented to the Revenue Commissioners for stamping.

Other legislation also contains enforcement provisions:

• sections 81(1) and 86(1) of the Companies Act, 1963, provide that a company registrar may not register a stock transfer form unless it is duly stamped and section 86(2) imposes penalties for non-compliance with that section,
• section 4 of the Stock Transfer Act, 1963, imposes penalties on persons who part with possession of transfers in blank or remove or allow them to be removed from the State,
• section 104 of the Registration of Title Act, 1964, provides that a Registrar may not register a deed of transfer unless it is duly stamped.
• chapters 1A, 1B, 1C, and 1D of Part 42 of the Taxes Consolidation Act 1997 contain provisions in relation to the recovery of stamp duty (including surcharge, clawback, interest and penalties) that become due and payable on or after 1 March 2009. The use of powers of attachment (section 1002 of the Taxes Consolidation Act, 1997) also applies to stamp duty.

Section 127 Terms on which instruments not duly stamped may be received in evidence

Summary

This section provides that an unstamped instrument may not be used in evidence¹ or for any purpose except as evidence in criminal proceedings or in civil proceedings by the Revenue Commissioners to recover stamp duty. Without this latter provision the Courts could not admit an unstamped instrument as part of the evidence of underpayment of stamp duty. Under the provisions of this section a purchaser could refuse to complete if an instrument forming a link in his or her title is not correctly stamped.

Details

(1) A judge, before whom any instrument is presented in evidence in civil proceedings, or an arbitrator or referee is obliged to investigate whether the instrument has been duly stamped. If it has not been duly stamped but the nature of the instrument is such that it may legally be stamped after execution then the instrument may be received in evidence on the payment to the appropriate court officer or the arbitrator or the referee of:

• the unpaid duty (including surcharge), and
• any interest due on late payment.

(2) Court officers, arbitrators and referees who receive moneys in accordance with subsection (1) must—

• issue a receipt,
• keep a record of the payment,
• advise the Revenue Commissioners of the payment, and
• hand over the moneys to such person as the Revenue Commissioners may appoint.

(3) The Revenue Commissioners will stamp the instrument on production of the original instrument together with the receipt issued by the court officer, arbitrator or referee. A stamp duty return in relation to the instrument is also required to be filed under the e-stamping system

(4) Instruments which are chargeable to stamp duty but which have not been duly stamped may not be used in evidence or be available for any purpose except in—

• criminal proceedings, or
• civil proceedings by the Revenue Commissioners to recover stamp duty.

(5) An instrument that has been stamped by means of the e-stamping system is deemed to be duly stamped, for the purposes of subsection 4, notwithstanding any objection relating to duty.

Relevant Date: Finance Act 2014