STAMP ACT 1988 Revised Edition

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1 C T STAMP ACT

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3 Stamp Act CAP. 70 Arrangement of Sections C T STAMP ACT Arrangement of Sections Section 1 Short title Interpretation Documents on which duty shall be charged Duties and other moneys recoverable by Atrney-General Documents not duly stamped inadmissible Knowingly registering document not duly stamped Cancellation of stamps Bank's duty Document invalid until duly stamped Using document chargeable before same is duly stamped Collecr of cusms may stamp documents upon certain terms Use of impressed stamp Frauds in relation stamps or duty Offences relating receipts Time for taking proceedings....9 SCHEDULE 10 Page 3

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5 Stamp Act CAP. 70 Section 1 C T STAMP ACT Acts Nos. 6 of 1927, 14 of 1950, 3 of 1963, 11 of 1964, 25 of 1974, 22 of 1977, G.S. 3/1975, G. 255/76, G.S. 38/79, Act 46 of 1988 AN ACT TO IMPOSE STAMP DUTIES Commencement [6th July, 1927] 1 Short title. This Act may be cited as The Stamp Act. 2 Interpretation. In this Act unless the context otherwise requires bill of exchange has the same meaning as in the Bills of Exchange Act; (Inserted by Act 25 of 1974.) cheque has the same meaning as in the Bills of Exchange Act; (Inserted by Act 25 of 1974.) duty means the stamp duty for the time being chargeable by law; Executed and execution with reference documents mean signed and signatured by any one or more of the parties there or in the case of a corporation sealed with or [WITHOUT?] [BY?]its seal; Page 5

6 Section 3 CAP. 70 Stamp Act lease includes a sub-lease, but does not include a deed of grant relating an allotment or a certificate of title a fi'a; promissory note has the same meaning as in the Bills of Exchange Act; (Inserted by Act 25 of 1974.) transfer on sale includes every document and every decree certificate or order of any court or judge whereby any property upon the sale thereof is legally or equitably transferred or vested in the purchaser or any other person on his behalf or by his direction. 3 Documents on which duty shall be charged. (1) Subject the exemptions contained in the Schedule there shall be raised collected and paid un the King of Tonga for the public uses of the Kingdom upon and in respect of the several documents specified in column 1 of the said Schedule the several duties in column 1 or 2 of such Schedule specified, all which duties shall be denoted by Tongan adhesive postage stamps affixed the said documents: Provided that the duty on a cheque shall be denoted by words printed on the cheque the effect that the appropriate stamp duty has been paid. (Inserted by Act 25 of 1974.) Alteration of duties. (2) It shall be lawful for the King in Council by resolution from time time add, alter or amend the duties payable under this Act, and such addition, alteration or amendment shall be deemed be embodied in this Act and take effect as from the date of publication of such resolution in the Gazette. 4 Duties and other moneys recoverable by Atrney-General. (1) All duties and other moneys payable under this Act shall from and after the day on which the same become due and payable be deemed be debts due and payable the King of Tonga from every person liable the payment of the same and may be recovered by the Atrney-General on behalf of the King by action in his official name in any court of competent jurisdiction, and in cases in which a money penalty without any alternative of imprisonment is imposed the court may in default of payment of the penalty inflicted inflict punishment of imprisonment not exceeding 3 months. (Amended by Act 46 of 1988.) Persons primarily liable for such duties. (2) Every person who with respect any document of the nature mentioned in the Schedule comes within the description specified in column 3 Page 6

7 Stamp Act CAP. 70 Section 5 thereof headed Persons primarily liable is personally liable the King of Tonga for the payment of the duty so chargeable on such document immediately upon execution thereof. (3) Nothing herein shall be deemed exonerate any other person from any liability imposed upon him by or under this Act or exempt any document from any duty or disability which it is liable under this Act. 5 Documents not duly stamped inadmissible. No document executed in Tonga or relating (whosesoever executed) any property situate in or any matter or thing done or be done in any part of Tonga shall, except in criminal proceedings, be pleaded or given in evidence or admitted be good useful or available in law or equity unless it is duly stamped in accordance with the law in force at the time it was first executed. 6 Knowingly registering document not duly stamped. (1) No document which is required by law be registered shall be registered until the same has been stamped in the manner required by this Act. (2) Any person knowingly registering any such document not being duly stamped shall be liable a penalty not exceeding $20. (Amended by Act 25 of 1974.) 7 Cancellation of stamps. (1) It shall be the duty of any person signing any document required by this Act be stamped cause the same be stamped as so required and, before any such document shall be delivered out of the hands of the person signing the same, he shall cancel the stamp thereon by writing on or across the stamp his name or initials or the name or initials of his firm gether with the true date of his so writing so that the stamp may be effectually cancelled and rendered incapable of being used for any other document. (2) Any person who acts in contravention of this section shall be liable a penalty not exceeding $20. (Amended by Act 25 of 1974.) (3) The provisions of this section do not apply a cheque. (Inserted by Act 25 of 1974.) Page 7

8 Section 8 CAP. 70 Stamp Act 8 Bank's duty. (1) It shall be the duty of the bank on which a cheque is drawn see that the appropriate stamp duty has been paid on the cheque and remitted Treasury. (2) A bank which acts in contravention this section shall be liable a fine of $20 for each cheque. (Inserted by Act 25 of 1974.) 9 Document invalid until duly stamped. No document other than a cheque is be deemed duly stamped unless the stamp has been cancelled in the manner prescribed in section 7 hereof or unless it is otherwise proved that the stamp appearing on the document was affixed there at the proper time. (Amended by Act 25 of 1974.) 10 Using document chargeable before same is duly stamped. Any person who makes, issues, transfers or negotiates any document other than a cheque chargeable with duty or pays any money accrued due in respect of any such document before the same is duly stamped shall be liable a penalty not exceeding $40. (Amended by Act 25 of 1974.) 11 Collecr of cusms may stamp documents upon certain terms. A document other than a cheque required by this Act be stamped, may be stamped after being made, given or executed only by a Collecr of Cusms and then only upon the terms following (a) within one month after such document has been made, given or executed upon the payment of the duty and a fine of $1; (b) after the expiration of one month from the making, giving or execution of such document upon payment of the duty and a fine of $2; (c) the fines shall be paid gether with the duty the Collecr of Cusms. (Amended by Act 25 of 1974.) 12 Use of impressed stamp. Where the amount of duty payable on any document other than a cheque exceeds the amount of $10 the payment of the duty may be denoted by impressed stamp. (Added by Act 3 of 1963 and Amended by Act 25 of 1974.) Page 8

9 Stamp Act CAP. 70 Section Frauds in relation stamps or duty. Any person who shall fraudulently remove or cause be removed from any document, required be stamped by this Act, any stamp, or shall use any such stamp or shall do or be concerned in any fraudulent act, with intent defraud the King of Tonga of any duty chargeable under this Act, shall be liable on conviction a fine not exceeding $200 or a period of imprisonment not exceeding 2 years. (Amended by Act 25 of 1974.) 14 Offences relating receipts. If any person (a) gives a receipt liable duty and not duly stamped; or (b) in any case where a receipt would be liable duty, does not give or issue a receipt duly stamped; or (c) upon a payment an amount the receipt for which is liable duty, gives or issues a receipt for a less amount, or separates or divides the amount paid with intent evade the whole or any part of the duty, he shall be liable a penalty not exceeding $40. (Amended by Act 25 of 1974.) 15 Time for taking proceedings. All proceedings for the recovery of any duties or penalties imposed by this Act may be commenced at any time within 6 months next after the omission pay such duties, or the commission of any offence charged came the knowledge of the complainant. Page 9

10 SCHEDULE CAP. 70 Stamp Act SCHEDULE (Section 3) Stamp Duties on Documents (Substituted by Act 25 of 1974, Amended by Act 22 of 1977, G.S. 3/75, G. 255/76, G.S. 38/79.) COLUMN 1 The Document COLUMN 2 The Duty COLUMN 3 Person primarily liable (1) AGREEMENT OR MEMORANDUM OF AGREEMENT $ The parties there Whether the same be evidence of a contract, or obligary upon the parties from its being a written document. (Explanation: A signed invoice is a memorandum of agreement) (a) Where the value amounts $2.00 but does not exceed $ (b) Where the value exceeds $6.00 and does not exceed $ (c) Where the value exceeds $20.00 then for every additional $20 and also for every fractional part of $ (But not exceed $1 on any such document). (2) BILLS OF LADING OR RECEIPT OF OR FOR ANY GOODS, MERCHANDISE OR EFFECTS TO BE CARRIED TO ANY PLACE BEYOND THE KINGDOM. The person the goods are consigned Bills of lading and each copy Receipt and each copy (3) CHEQUE Drawee bank (4) BILL OF EXCHANGE The drawer or accepr Page 10

11 Stamp Act CAP. 70 SCHEDULE (a) Payable on demand, or at sight, or on presentation (b) Payable otherwise than on demand, sight or presentation, drawn or expressed be payable in or actually paid or endorsed or in any manner negotiated in the Kingdom for any sum not exceeding T$ for every additional T$ and also every fractional part of T$ (5) PROMISSORY NOTE OF ANY KIND (Except a Bank Note or Currency Note) The drawer or accepr (a) For any sum not exceeding T$10.00 (b) Exceeding T$10.00 and not exceeding T$ (c) For every additional T$50.00 and also for every fractional part of T$ Exemption All Bills of Exchange or Promissory Notes issued by any bank for Government purposes the Treasurer. (6) ORDERS UPON THE TREASURY For the payment of money drawn by the person whom the payment is due in favour of any other person The same rate of The drawer duty as a promissory note. (7) LEASE OR AGREEMENT FOR A LEASE OR ANY WRITTEN DOCUMENT FOR THE TENANCY OR OCCUPANCY OF ANY LANDS OR BUILDINGS, THE FOLLWING DUTIES IN RESPECT OF THE RENT AT THE RATE PER ANNUM: The lessee or tenant (a) Where the rent does not exceed T$ Page 11

12 SCHEDULE CAP. 70 Stamp Act (b) Where the rent exceeds T$50.00 and does not exceed T$ (c) Above T$100.00, for every T$ and also for every fractional part of T$ (8) CONVEYANCE OR TRANSFER The transferee (a) By sale of any lease or sublease, 10 per centum of the amount of purchase money agreed be paid for the transfer of such lease or sub-lease... (b) Of a lease or sub-lease by gift or for a consideration other than purchase money, 12.5 per centum of the tal aggregate of rent payable over the remaining term, not including any renewal which may be granted, of the said lease or sub-lease... (c) On the sale of any buildings, fences, growing crops or livesck not included in the sale price of a transfer of lease or sub-lease by passing with possession of land 10 per centum of the amount of purchase money agreed be paid. (9) MORTGAGE, BOND, DEBENTURE OR COVENANT (a) Being the only or principal or primary security for the payment of any money not exceeding T$ For every additional T$100 and also for every fractional part of T$ (b) Being the security for repayment of a loan or loans be made from time time, the amount or amounts of the loans not being specified... as in column 1 as in column 1 as in column 1.75 On a mortgage the mortgagee: on a bond, the obliger; on a debenture, the person issuing: on a covenant, the parties the covenant or any of them..75 $20.00 Page 12

13 Stamp Act CAP. 70 SCHEDULE (c) Transfer or assignment of any mortgage, bond, debenture or covenant. The same rate of duty as (8) (a). (d) Being a collateral, or auxiliary or additional or substituted security or by way of further assurance for the above mentioned purposes - Where the principal or primary security is duly stamped... (e) Reconveyance, release or discharge of any such security as aforesaid or the benefit thereof or of the money thereby secured... (f) Where any further money is added the money already secured... (g) Being a variation of the principal security without increase of the money already secured and the principal security is already stamped... (10) RECEIPT Given for or upon the payment of money - amount T$4.00 or upwards but not exceeding T$ exceeding T$ or upwards but not exceeding T$ Duty on the amount of increase at same rate as for principal security..75 $ The person giving the receipt exceeding T$ Exemption Receipts given for or upon the payment of money or for the use of the Government of Tonga. Page 13

14 SCHEDULE CAP. 70 Stamp Act Receipts endorsed upon any document duly stamped with ad valorem duty under this Act acknowledging the receipt of the consideration money therein expressed. Receipts or discharges given by any person for the payment of wages or salary. Receipts given for contribution for charitable institutions or religious bodies. Page 14

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