Tony Gregory (Dublin Central, Independent)
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Question 312: To ask the Minister for Finance if a person (details supplied) in Dublin 3 will be allowed six months to pay an outstanding amount of stamp duty without penalty interest being charged. [19481/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am informed by the Revenue Commissioners that they previously received representations on this matter when it was agreed to grant the taxpayer a period of 21 days from 25 April 2005 to pay the balance of stamp duty due without incurring penalties and interest.

The taxpayer completed the purchase of a house on 17 November 2004. The solicitors acting in the case were issued with an assessment for stamp duty due of €10,125 on 1 December 2004. The taxpayer's solicitors presented the sum of €9,450.50 as a payment on account on 2 December 2004 in this case. However, the balance due of €674.50 remains outstanding to this date.

Daily interest is charged at the rate of 0.0273% from 1 April 2005 and at the rate of 0.0322% prior to 31 March on any outstanding amount of stamp duty. The objective of the interest element is to compensate the Exchequer for the loss of the use of the funds from the tax that had not been paid on time. A further penalty arises of 10% of the outstanding duty where the delay in payment is between one and six months, 20% where the delay is between six and 12 months, and 30% where the delay is more than 12 months. Those further penalties are to encourage compliance to have deeds presented for assessment and stamping within the time required.

As stamp duty is a statutory charge on legal documents, there are no provisions for the reduction or waiver of the duty properly payable and already determined by letter of assessment issued on 1 December 2004. The legal instrument that gives rise to the charge for stamp duty cannot be used for registration purposes unless it is fully and properly stamped.