E Stamping Application Form – Fill Out and Use This PDF

Business Services

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September 2011

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Instruments executed prior to 1 January 2002;

Instruments presented to the Revenue Commissioners prior to 30 December 2009; or

Where an instrument is required to be stamped where an exemption has been granted.

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	Form No. /Name	Comments	Still Required
		This form relates to the transfer of unquoted shares. The details	Page 1 (Parts 1-4) no longer
		in Page 1 (Parts 1-4) of the SD4 are now captured under the	required.
	SD4	e-Stamping system. The details in Page 2 (Parts 5-7) should be
		completed where a valuation of the shares is required. Adjudication	Page 2 (Parts 5-7) still
		is mandatory in the case of a gift.	required.
		This form provides for an apportionment of the consideration between	Form required where
		the different classes of chargeable/non-chargeable assets where	apportionment details are
		there is a contract chargeable under section 31 SDCA 1999. Under	required to be furnished.
	ADJN 14	e-stamping only the total consideration apportioned to the chargeable
		assets is required. Details of the apportionment should be furnished if
		adjudication is required or in the context of a post-stamping audit.
		Statutory Declaration required in support of a claim for relief under	Still required.
	ADJN6	section 79 SDCA 1999 on transfers between associated companies.
		Adjudication is mandatory.
		Provides apportionment details where relief is claimed for commercial	Still required.
	ADJN 120	woodlands under section 95 SDCA 1999. Adjudication is not
		mandatory but in practice is required.
	Section 80 SDCA	Statutory Declaration required in support of a claim for relief under	Still required.
	1999 -Statutory	section 80 SDCA 1999 in relation to a scheme of reconstruction or
	Declaration	amalgamation. A draft declaration is available on request.
		Adjudication is mandatory.
		Required where Farm Consolidation relief under section 81C	Still required.
	SD81C
		SDCA 1999 is claimed. Adjudication is mandatory.
		Required where Young Trained Farmer relief under section	Still required.
	SD2B
		81AA SDCA 1999 is claimed. Adjudication is mandatory.
		In the case of a mixed property the consideration must be	Apportionment details are now
		apportioned between the residential and the non-residential element	included in the Stamp Duty
	Apportionment	of the property. Section 16 SDCA 1999 (surcharge for miss-	Return filed under e-stamping.
	Details (residential/	apportionment) provides for an estimate of the residential considera-	The vendor's estimate should
	non-residential	tion, made by the vendor and the purchaser, to be included in the	be obtained and retained by
	property)	statement required under section 8(2) SDCA 1999. Such a statement	the purchaser and should be
		is not required to be delivered where the instrument is stamped by	made available on request by
	Clawback -notification	means of the e-stamping system.	Revenue.
			Replaced by the new elec-
		A clawback arises in relation to the reliefs granted under sections
	of receipt of rent	A clawback arises in relation to the reliefs granted under sections	Replaced by the new
		91A, 92 and 92B SDCA where the house purchased is subsequently	tronic/paper Clawback
	Clawback -	91A, 92 and 92B SDCA where the house purchased is subsequently	electronic/paper Clawback
		rented. The person who receives the rent is obliged to notify the	Form under e-stamping.
	notification of	rented. The person who receives the rent is obliged to notify the	Form under e-stamping.
		payment of the rent to Revenue.
	receipt of rent	payment of the rent to Revenue.	No longer required.
	ST21	Particulars Delivered Form. Under section 12(5) SDCA 1999 the
		requirement is no longer operable for instruments stamped under the	No longer required.
		Particulars Delivered Form. Under section 12(5) SDCA 1999 the
		-stamping system.
	ST21	requirement is no longer operable for instruments stamped under the
		e-stamping system.
	Warrant for	Informationnownowcapturedininthethestampdutydutyreturn. .	NoNolongerrequired. .
	Adjudication
	ST RFND 1	For completion in relation to a refund of stamp duty. Under e-	No longer required.
			No longer required.
		For completion in relation to a refund of stamp duty. Under
		stamping a refund is claimed by filing an amended return or a proxy
	ST RFND 1	e-stamping a refund is claimed by filing an amended return
		return (where the instrument was stamped before 30 December
		or a proxy return (where the instrument was stamped before
		2009).
		30 December 2009).

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Update on E-stamping: mandatory e-filing and e-payment

Tax Reference Numbers

In a previous article in the September 2010 edition of the Irish Tax Review, I examined the difficulties and risks posed by the requirement to have a valid tax reference number for each of the parties to the document to be stamped. Response times from the Revenue Commissioners in respect of applications for customer reference numbers for foreign companies are excellent and there has been some improvement in response times in respect of applications for PPSN’s from the Department of Social Protection. The lack of an adequate means of verifying tax reference numbers remains an issue. It is essential that before taking responsibility for stamping a document, a practitioner should have obtained the tax reference numbers of all parties to the relevant document and have appropriate verification of those tax reference numbers.

Adjudication Cases

There is a high level of stamp duty returns being adjudicated even where they are not situations requiring mandatory adjudication. This is giving rise to backlogs in issuing stamp certificates. It may also give rise to risk of late filing penalties being applied. This arises because in “straight stamping” cases the Revenue Commissioners normally allow 44 days for the filing of a stamp duty return whereas in adjudication cases a 30 day period applies. There have been numerous reports of the Revenue Commissioners seeking to apply late filing penalties in cases of stamp duty returns which were filed more than 30 days but within 44 days of execution of the relevant document being selected for non statutory adjudication. In such cases the practitioner is faced with a potentially embarrassing (and costly) situation with one’s client; though in most cases involving non statutory adjudication, if the practitioner objects strenuously to the imposition of such penalties he should be successful in having them dropped. However, the prudent course of action in all cases is to ensure that stamp duty returns are filed with 30 days of the execution of the relevant documents.

Business Transfer Agreements

In many acquisitions of businesses the assets acquired comprise a mixture of assets some of which attract a stamp duty charge (e.g. land and goodwill) and some which do not (e.g. certain types of intellectual property). In such situations in order to calculate the stamp duty liability it is necessary to apportion the consideration between the different classes of chargeable and non chargeable assets. However the e-stamping system does not permit the overall consideration to be apportioned between the chargeable and non chargeable categories of assets. The Revenue Commissioners have issued guidelines on how to complete a stamp duty return in respect of business purchases. The guidelines suggest that only the amount of the overall consideration which relate to chargeable assets should be inputted in the stamp duty return and that a short description of the assets (not exceeding 35 characters) be entered in the “property address” field in the stamp duty return. The guidelines further indicate that in the event of adjudication or a stamp duty audit that an ADJN 14 containing an apportionment of the consideration between the different classes of chargeable and non chargeable assets will be requested.

It is submitted that this leaves practitioners in a wholly unsatisfactory position in a number of respects. Firstly, practitioners need to calculate the stamp duty liability without reference to the e-stamping system because if they attempt to rely on the e-stamping return as a calculation tool (or even as a means of checking their own calculations) it may lead to an erroneous result. Secondly, practitioners are unlikely to be aware of the increased significance being placed on them having precise details of the apportionment of the consideration across the classes of chargeable and non chargeable assets and the likelihood of adjudication or a post stamping audit must surely be greater in light of the clear defect in the e-stamping system in respect of business purchase transactions.

Form 52

Where shares are issued for non cash consideration pursuant to a contract which has not been reduced to writing a Form 52 must be completed setting out details of the contract. A Form 52 is deemed to be an instrument for stamp duty purposes (section 58(2) Companies Act 1963) and may attract a stamp duty liability. A stamp duty return must be filed in respect of Form 52. The online return in respect of Form 52 has proved very problematic and time consuming for practitioners. The Revenue Commissioners have issued some guidelines as to how to complete such returns though these are in the nature of a workaround for a design defect in the e-stamping system.

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Update on E-stamping: mandatory e-filing and e-payment

Stamp Duty Audits and Document Retention

Since the introduction of the e-stamping system the Revenue Commissioners receive a return in respect of the underlying transaction and they only have sight of the relevant documents in adjudication and penalty mitigation cases. It is highly likely that the Revenue Commissioners will carry out an increased number of audits of transactions which were the subject of stamp duty returns. Audits will be carried out in accordance with the Revenue Commissioners’ Code of Practice for Revenue Audits.

As explained in a previous article in the September 2010 edition of the Irish Tax Review the obligation to retain documents is imposed on the taxpayer but in practicality the taxpayer will turn to the agent who filed the stamp duty return for assistance in the event of an audit. A practitioner who files a stamp duty return that does not reflect the facts and circumstances of which he is aware is exposed to a €3000 penalty for each such incorrect return. In that context it is important for practitioners involved in filing stamp duty returns to be able to record the information which was provided and on which the stamp duty return was prepared.

The configuration of the online stamp duty return does not permit the filer to print off a full record of the stamp duty return. Whilst there is a facility to print off the summary calculation sheet this comprises only the actual information inputted. It does not contain any record of any elections made in the course of inputting the relevant information in the stamp duty return. There is no ready means for a practitioner to maintain a full record of all information inputted into a stamp duty return.

Conclusion

There has been a very good level of acceptance by practitioners of the e-stamping system and it operates well in most standard situations. However, there are still a number of significant shortcomings and numerous more minor ones which are not addressed in this article. It is to be hoped that the Revenue Commissioners will devote the necessary level of attention and technical resources to remedying these shortcomings when undertaking upgrades of ROS.

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For more information please contact

Emmet Scully

T +353 1 637 1538

E escully@lkshields.ie