Stamp duty Compliance

12/06/2019

Revenue has provided the Taxation Committee with a list of common issues/errors that are being made by filers of stamp duty returns.

The Taxation Committee notes that the Summary and Calculation screen of a stamp duty return does not display all selections made in the return. In complex returns the Taxation Committee consider it advisable to print relevant offline screens as evidence of the entries selected which may be of assistance to the filer if the return is selected for compliance intervention.

Common issues

Properties are being incorrectly described as ‘wholly non-residential’ while the practitioner waits for the LPT Property ID and the return is subsequently amended to declare the property as ‘wholly residential’ or ‘mixed-use’ when the LPT Property ID is received.  In situations where a delay in obtaining a LPT Property ID could result in late filing, the correct procedure is to wait for the LPT Property ID before filing the return.

  • Vendor/Purchaser details are being omitted from a return or in some cases filers are using another person's tax reference number in the absence of the PPSN. For example, the deed records two vendors while the return filed records one vendor or the filer uses their own tax reference number in place of the purchaser's. In situations where a delay in obtaining a PPSN could result in late filing, the correct procedure is to wait for the PPSN before filing the return. More information is available on the Revenue website – see Filing a Return  and Tax Reference Numbers.
  • Consideration being declared on return as being equal to open market value where the transfer is in fact a gift or partial gift.
  • Long term leases greater than 100 years being filed as a "Conveyance/Transfer of Property" instead of as "Long term leases".
  • Vendor/Purchaser details being incorrectly recorded on returns e.g. fiduciary capacity not being indicated and PPSN of person acting in fiduciary capacity being declared.  Information on how to file a return where a fiduciary is involved is contained in section 34 of the completing a return online document and also Tax Reference Numbers.
  • Variations in "certified as a true copy" of the deed being submitted (e.g. pages being replaced in deeds after Stamp Certificate has issued, more than one version of a "certified as a true copy" being submitted)
  • Where an error comes to light after the return has been filed, the return should be amended to correct the error (a new return should not be filed).  See more information on how to amend a return.
  • Refunds must be applied for. For example, a common reason for a refund claim is forgetting to deduct VAT from the consideration paid. Information on how to apply is available on the site under stamp duty refunds and the residential development refund scheme.

Knowingly or wilfully delivering an incorrect return is an offence under Section 1078(2)(a) of the Taxes Consolidation Act 1997.

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This article originally appeared in the May 2019 Member eZine. For more information, and to subscribe, see eNewsletters.