|Ruling number||SD 086|
|Date issued||05 January 1988|
|Issued by||AD Clyne|
Chief Commissioner of Stamp Duties
|Effective from||05 January 1988|
|Effective to||30 June 1998|
New ruling required - combine SD 086 and SD 199 draft equivalent ruling for requirements under the Duties Act
This Ruling provides information on the lodging of instruments for stamping including details of the information and documentation ordinarily required. Guidance is also given on the preparation of answers to requisitions.
This Ruling should be read in conjunction with SD 002 and where overlaps exist this Ruling will apply to documents lodged after the date of this Ruling. Where this Ruling refers to stamping procedures which have been altered due to legislative amendment, then this Ruling will apply to documents executed after the commencement of the new provisions.
When instruments are lodged for stamping, information known to be required to enable an assessment to be made, should also be attached to ensure that instruments are stamped and returned without delay.
The requirements vary with each application. If the instrument lodged for stamping is complex or the nature of the transaction is not readily evident, the full facts and circumstances surrounding the transaction should be disclosed on a statutory declaration.
Examples of particular classes of instrument are listed below.
Where the parties are related or where there is an element of gift, a balance sheet and revenue accounts for the last five accounting years which were completed prior to the date of signing of transfer, should be lodged.
Details should also be lodged stating how the parties arrived at the consideration.
Depending upon the particular circumstances of each case, an accountant's detailed valuation of the shares may be required. Amendments introduced by the Stamp Duties (Further Amendment) Act 1987 (effective from 16 December 1987) provide that transfers of shares in companies not listed on a recognised stock exchange which are not the beneficial or legal owners of land in NSW are subject to a minimum duty of $10. Where the $10 duty applies the transfer may be stamped using an adhesive stamp.
Where a lease contains a building covenant the following information should be furnished (letter will suffice):
That section provides that any expenditure on improvements made by the lessee as consideration for obtaining the lease is assessable as additional rental.
Where a lessee is required to pay additional amounts under the provisions of a lease, such as outgoings, a letter should be lodged estimating the amount. (Note: Outgoings liable as additional rent include water rates, Council rates and/or land tax and any payment by the lessee for the use of the leased property).
Depending on the term of the lease, and particularly if the term does not exceed five years, an assessment will be made based on estimates of the future outgoings over the period. This practice is designed to finalise the assessment. However, the taxpayer can elect to proceed on an interim stamping basis subject to reappraisement pursuant to section 78D, rather than stamping on an estimate basis. An assessment on an estimate basis is suggested in suitable cases as a practicable solution of benefit to all concerned, in that it provides a "once only" stamping.
In all instances where evidence is required to enable an assessment to be made on trust instruments the evidence must be furnished by way of statutory declaration.
For example, when a superannuation trust deed or a settlement deed is lodged, it should be accompanied by a statutory declaration by the trustee detailing the actual New South Wales assets of the fund as at the date of execution of the instrument.
Where a claim is made that a conveyance attracts duty under section 73(1)(e) of the Stamp Duties Act, a statutory declaration is required stating:-
The instrument whereby trust property was acquired by the trustee should be produced.
The following situations usually give rise to requests by the Department for clarification of a party's relationship:
Formal requisitions seeking information about a party's relationship ask for the information to be incorporated in a statutory declaration. However, it is acceptable for the solicitor for the purchaser to lodge a written certification, either by letter for non urgent matters or on the instrument for urgent matters. The certificates must be signed by a principal of the firm.
All applications for remission of fines for late payment of duty must be made in writing.
Procedures are available at the Sydney and Parramatta Urgent Sections to have written requests considered on a 24 hour basis. The stamp duty should be paid prior to the fine being considered.
When payments of stamp duty by return are lodged in the Sydney Office applicants should ensure that the payments are receipted. Any delay in the actual date of receipt being recorded may result in queries as to the date/time of actual lodgement, with a view to determining whether a fine is payable.