If I avoid Stamp Duty and get caught what are the penalties?

C

crissy

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Sorry for editing. Basically, If I buy from a friend and avoid stamp duty what are the penalties if I get caught?
 
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Re: Stamp Duty

As part of the transfer your solicitor will deduct certain charges and fees. These include his fees and stamp duty.

You have 30 days to pay the stamp duty charge.
If you do happen to obtain the property without paying stamp duty you will have to pay interest and penalties, these can be very severe.
 
Re: Stamp Duty

"If I avoid S/D and get caught what are the penalties? "

Its either due or not. If its not due, then there is no issue.

If it is due and you don't pay it, or deliberately undervalue the property to bring the house below a stamp duty threshold, you probably won't be able to get a mortgage ( lenders will only lend on a % of full market value), the solicitor will not be able to register your title and the lenders mortgage - so won't act, and you are exposed to the likelihood of penalties and interest. Oh yes, and its a fraud on the Revenue.

mf
 
Re: Stamp Duty

crissy said:
If I avoid S/D and get caught what are the penalties?
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This may give some idea... Owner occupier buyers letting out house within 5 years
wexford said:
reply recieved from revenue:

....As you have indicated in your message you did in fact rent the property out within two tears of the initial purchase and are therefore liable to pay the duty that would have been due. Furthermore, this duty would have fallen due from the date of the first rental of the property and if not paid at that time would also be liable to the further payment of interest at the rate of 0.0322% per day (up until 31/03/05 when the rate changed to 0.0273% per day) from the date the rental payment is received to the date the payment of clawback is remitted.

This is allowed for under sections 91,92,92A and 92B of the Stamp Duties Consolidation Act, 1999 as amended.
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[FONT=&quot]I can't confirm if it's the same where someone didn't pay the SD at the outset as it is for someone who is due to pay SD clawback, but gives some indication (I'd imagine the penalties could/would be higher). Trying to avoid SD like this seems a pure case of false economics where the chances of getting caught are getting bigger all the time.[/FONT]
 
Re: Stamp Duty

Satanta said:
This may give some idea... Owner occupier buyers letting out house within 5 years


[FONT=&quot]I can't confirm if it's the same where someone didn't pay the SD at the outset as it is for someone who is due to pay SD clawback, but gives some indication (I'd imagine the penalties could/would be higher). Trying to avoid SD like this seems a pure case of false economics where the chances of getting caught are getting bigger all the time.[/FONT]
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Is that correct? .0322% PER DAY?

If someone didnt pay stamp duty of say 12k or whatever then thats 386 euro a day....that would build up to a huge amount over a couple of years....

(And no, I didnt avoid paying stamp duty)
 
Re: Stamp Duty

SteelBlue05 said:
Is that correct? .0322% PER DAY?
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No personal experience of it, but seems to be a direct copy/paste from a Revenue e-mail and nobody replied to contradict the statement so seems to be right.

Seems a lot easier to simply pay the SD due.
 
crissy said:
Finished thread

Last edited by crissy : Today at 10:33 AM. Reason: Got answer!!
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Please DON'T delete your original question just because someone goes to the trouble of providing you with an answer. Some of the rest of us might like to read the thread in full and maybe even provide our own tuppence worth.
 
Re: Stamp Duty

SteelBlue05 said:
Is that correct? .0322% PER DAY?

If someone didnt pay stamp duty of say 12k or whatever then thats 386 euro a day....that would build up to a huge amount over a couple of years....
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€12,000 x 0.322% = €3.86 per day not €386.
 
Crissy,

Part of our approach here the AAM community is that we share questions and answers. This way when similar questions arise in the future there is a readymade stock of answers/discussion.

Could I ask you to reinstate the original question?

aj
 
NorfBank said:
12k x 0.0322% = 3.84 E per day not 384E or am I wrong?
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Nope. That seems correct (although it should/would be replaced by 0.0273% from 31/03/05).
0.0322% (0.00032) x €12,000 = €3.84
It's an extra €1400 per year, so if an honest mistake still quite a build up.

SteelBlue05 said:
Oh it is, my mistake. Not really a huge penality is it ;)
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Just to note, this is the interest, not the penalty! There may (never had to deal with this situation but frequently see reference to "interest and penalties") be more on top!
 
Well it seems to me that it is quite high i.e its a loan/interest @11.75% or thereabouts!! so its not cheap and also as mentioned above this does not take any account of penalties for not paying SD.
 
Penalties can be as much as 100% and of course defrauding the revenue is an offence:- s.1078 Taxes Consolidation Act 97

person convicted of an offence under this section shall be liable—
  • ( a ) on summary conviction to a fine of £1,000 which may be mitigated to not less than one fourth part of such fine or, at the discretion of the court, to imprisonment for a term not exceeding 12 months or to both the fine and the imprisonment, or
  • ( b ) on conviction on indictment, to a fine not exceeding £10,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years or to both the fine and the imprisonment
Click to expand...
 
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