Section 14 Penalty on stamping instruments after execution

Summary

This section provides for interest for the late payment of stamp duty. The penalties for late stamping have been abolished in respect of instruments executed on or after 7 July 2012 and a late filing surcharge has been introduced in respect of such instruments in relation to the late filing of a self-assessed stamp duty return under the e-stamping system (see section 14A).

Stamp duty payment dates are laid down in legislation. Late payment of duty is subject to a statutory interest charge designed to—

• compensate the Exchequer for loss of revenue through late payment;
• encourage timely payments in future; and
• ensure equity for the majority taxpayers who pay their taxes and duties on time.

In general, therefore, interest charges incurred will not be waived by Revenue.

Where exceptional and unforeseeable circumstances prevent duty being paid on time - resulting in an interest charge being incurred - Revenue is prepared to consider requests that interest should not be charged, on a case by case basis.

Section 1089 of the Taxes Consolidation Act, 1997, provides that interest payable under this section is payable without deduction of income tax and not allowable in computing any income, profits or losses for any of the purposes of the Income Tax Acts and the Corporation Tax Acts.

Details

Late payment

(1) Except where otherwise provided in this Act, where the correct amount of stamp duty is not paid within the time limits laid down in section 2 the Revenue Commissioners will only stamp the instrument on payment of the appropriate interest. In practice, the Revenue Commissioners allow 44 days to elapse from the date of first execution of the instrument before interest will be levied. When levied interest applies from the date of first execution of the instrument and, where the unpaid duty exceeds €30, is charged at the rate of 0.0219 per cent per day (0.0273 per cent per day prior to 1 July 2009) (see section 159D).

Denoting of interest on instruments

(4) Any interest paid is to be indicated on the instrument by means of a stamp. In the e-stamping system interest paid is shown on the stamp certificate.

Relevant Date: Finance Act 2014