Finance Act, 1949
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Stamp duties on certain mortgages, etc. |
26.—(1) In this section— | |
the word “property” means lands, tenements or hereditaments which stand conveyed or transferred (whether the conveyance or transfer was effected before or after the passing of this Act) to a body corporate by means of an instrument chargeable with stamp duty under the heading “Conveyance or Transfer on sale of any property” in the First Schedule to the Stamp Act, 1891, as amended by subsequent enactments, and stamped at the rate mentioned in subsection (1) of section 13 of the Finance (No. 2) Act, 1947 (No. 33 of 1947); | ||
the expression “Irish body corporate” means a body corporate within paragraph (f) of subsection (4) of section 13 of the Finance (No. 2) Act, 1947 ; | ||
the expression “unqualified person” means any person who, at the date of the execution of the relevant instrument by means of which property was conveyed or transferred to a body corporate, was not within one of the paragraphs (a) to (e) of subsection (4) of section 13 of the Finance (No. 2) Act, 1947 ; | ||
the word “shares” means issued shares of each class. | ||
(2) (a) Where, in a case in which property stands conveyed or transferred to an Irish body corporate, any mortgage or equitable mortgage, or any charge, of or on the property, or any debenture, or any bond, covenant or warrant of attorney to confess and enter up judgment, is given by the body corporate to an unqualified person who is beneficially entitled to any of the shares of the body corporate or who under the memorandum or articles of association of the body corporate or otherwise exercises or may exercise control or management thereof or is given by the body corporate to two or more persons any of whom is such an unqualified person— | ||
(i) the mortgage, equitable mortgage, charge, debenture, bond, covenant or warrant of attorney shall,notwithstanding any other Act, be chargeable with stamp duty at the rate of twenty-five pounds per cent. of the value of the property, and | ||
(ii) if, at the expiration of thirty days after the execution of the mortgage, equitable mortgage, charge, debenture, bond, covenant or warrant of attorney, it is not stamped or is not stamped at the said rate, a sum equal to twice the amount of duty at the said rate shall thereupon be a debt due to the Minister for Finance for the benefit of the Central Fund by such person, or by such persons jointly and severally. | ||
(b) Where, in a case in which property stands conveyed or transferred to an Irish body corporate— | ||
(i) any mortgage or equitable mortgage, or any charge, of or on the property, or any debenture, or any bond or covenant, is given by the body corporate to any person (not being an unqualified person such as is mentioned in paragraph (a) of this subsection) or to two or more persons (none of them being an unqualified person such as is mentioned in paragraph (a) of this subsection), and | ||
(ii) any transfer, assignment or disposition is subsequently executed in consequence of which such mortgage, equitable mortgage, charge, debenture, bond or covenant stands transferred to or in favour of an unqualified person such as is mentioned in paragraph (a) of this subsection or two or more persons any of whom is such an unqualified person, | ||
the following provisions shall have effect: | ||
(I) the transfer, assignment or disposition shall, notwithstanding any other Act, be chargeable with stamp duty at the rate of twenty-five pounds per cent. of the value of the property, and | ||
(II) if, at the expiration of thirty days after the execution of the transfer, assignment or disposition, it is not stamped or is not stamped at the said rate, a sum equal to twice the amount of the duty at the said rate shall thereupon be a debt due to the Minister for Finance for the benefit of the Central Fund by the last-mentioned person, or by the last-mentioned persons jointly and severally. | ||
(c) Where, in the case of property which stands conveyed or transferred to an Irish body corporate, a deposit of title deeds, or of any document of title, to the property is made by the body corporate as security and the deposit is made with such an unqualified person as is mentioned in paragraph (a) of this subsection or with two or more persons any of whom is such an unqualified person— | ||
(i) the body corporate shall deliver to the Revenue Commissioners within thirty days after the deposit is made a statement containing particulars of the property, the value thereof and the names and descriptions of the parties to the transaction, | ||
(ii) the statement shall be chargeable with stamp duty payable by the body corporate at the rate of twenty-five pounds per cent. of the value of the property, and | ||
(iii) if the statement is not delivered within the said thirty days or if, at the expiration of thirty days after delivery thereof, it is not stamped or is not stamped at the said rate, a sum equal to twice the amount of the duty at the said rate shall thereupon be a debt due to the Minister for Finance for the benefit of the Central Fund by the body corporate and its directors jointly and severally. | ||
(d) Where, in the case of property which stands conveyed or transferred to an Irish body corporate— | ||
(i) a deposit of title deeds, or of any document of title, to the property is made by the body corporate as security and the deposit is made with any person (not being an unqualified person such as is mentioned in paragraph (a) of this subsection) or withtwo or more persons (none of them being an unqualified person such as is mentioned in paragraph (a) of this subsection), and | ||
(ii) any transfer or transfers is or are subsequently effected in consequence of which such title deeds or document of title cease or ceases to be deposited as aforesaid and stand deposited as security with a person who is an unqualified person such as is mentioned in paragraph (a) of this subsection or two or more persons any of whom is such an unqualified person, | ||
the following provisions shall have effect: | ||
(I) the last-mentioned person or two or more persons shall, within thirty days after such title deeds or document of title become or becomes deposited with such person or persons, deliver to the Revenue Commissioners a statement containing particulars of the property, the value thereof and the name or names and description or descriptions of such person or persons, | ||
(II) the statement shall be chargeable with stamp duty payable by such person or persons at the rate of twenty-five pounds per cent. of the value of the property, and | ||
(III) if the statement is not delivered within the said thirty days or if, at the expiration of thirty days after delivery thereof, it is not stamped or is not stamped at the said rate, a sum equal to twice the amount of the duty at the said rate shall thereupon be a debt due to the Minister for Finance for the benefit of the Central Fund by such person, or by such persons jointly and severally. | ||
(3) Where, in the case of property which stands conveyed or transferred to an Irish body corporate, an unqualified person or two or more persons any of whom is an unqualified person becomes or become entitled to any beneficial interest in the whole or part of the property, the following provisions shall have effect unless the principal or only instrument under which such person or persons becomes or become so entitled is an instrument chargeable with stamp duty under subsection (2) of this section or unless stamp duty determined by reference to the value of the property has already been paid under that subsection by such person or any of such persons— | ||
(i) the principal or only instrument under which such person or persons becomes or become so entitled shall, notwithstanding any other Act, be chargeable with stamp duty at the rate of twenty-five pounds per cent. of the amount or value of the consideration, or in the case of a voluntary disposition inter vivos, on the value of the property (or the part thereof to which such person or persons becomes or become entitled), and | ||
(ii) if, at the expiration of thirty days after such person or persons becomes or become so entitled, the said instrument is not stamped or is not stamped at the said rate a sum equal to twice the amount of the duty at the said rate shall thereupon be a debt due to the Minister for Finance for the benefit of the Central Fund by such person, or by such persons jointly and severally. | ||
(4) (a) In a case in which property stands conveyed or transferred to a body corporate which has ceased to be an Irish body corporate because of the shares having ceased to be, to an extent exceeding one-half (in nominal value) thereof, in the beneficial ownership of persons each of whom is within one of paragraphs (a) to (e) of subsection (4) of section 13 of the Finance (No. 2) Act, 1947 , the following provisions shall have effect: | ||
(i) the principal or only instrument by which the property was conveyed or transferred to the body corporate shall, notwithstanding that it has been stamped already, and irrespective of whether or not it has been stamped with a particular stamp denoting that it is duly stamped, again be chargeable with stamp duty, | ||
(ii) such duty shall be chargeable at the rate of twenty-five pounds per cent. on the amount by reference to which the stamp duty already paid was determined, and | ||
(iii) if, at the expiration of thirty days after the bodycorporate has ceased to be an Irish body corporate, such instrument is not stamped or is not stamped at the said rate, a sum equal to twice the duty at the said rate shall thereupon be a debt due to the Minister for Finance for the benefit of the Central Fund by the body corporate and its directors jointly and severally. | ||
(b) This subsection shall not apply in any case in which stamp duty determined by reference to the value of the property has already been paid under subsection (2) of this section or in any case in which the shares have ceased to be held as aforesaid merely by operation of law or by reason of any transfer from the personal representative of a deceased holder or any order of a Court. | ||
(5) (a) Any sum being a debt due to the Minister for Finance in accordance with this section shall be payable to the Revenue Commissioners and shall be recoverable at the suit of the Attorney General in any court of competent jurisdiction. | ||
(b) The Revenue Commissioners may, if they think fit, mitigate or remit any sum recoverable under paragraph(a) of this subsection. |