Section 28: Valuation of property

28. Valuation of property (1) (a) The value of any property that is transferred, as specified in paragraph (b), shall, for the purposes of levying duty and taxes under this Act, be determined in accordance with this section. (b) The property referred to in paragraph (a) shall be the following— (i) any property, including any immovable property which forms part of the assets of a partnership, successive partnership, company or successive company; (ii) any property which is deemed under subsections (2) and (3) of section 4 to have been transferred; (iii) – (v) — (vi) any immovable property which is the subject of a document attracting the proportional duty under any of items 10 to 13 of paragraph I or under any of items 10 to 14 of paragraph J of Part I of the First Schedule to the Registration Duty Act; (vii) any property which is the subject matter of a deed by which a purchaser of the property declares that he has purchased the property on behalf of another person and in the name of that person with money belonging to and provided by that person; L4 – 17 [Issue 5] Land (Duties and Taxes) Act (viii) the immovable property or any part thereof to which a person has right of ownership, occupation or usage pursuant to a transfer of shares in a company or issue of shares by a company or transfer of part sociale in a société. (2) Where the Registrar-General is dissatisfied with the value mentioned in any deed of transfer or any other deed witnessing the transfer of any property, he may— (a) exercise a right of pre-emption under section 20 of the Registration Duty Act; or (b) where he does not exercise the right of pre-emption, by notice in writing, make an assessment— (i) in the case where there has been a transfer of shares in a partnership, of the value of the immovable property forming part of the assets of that partnership or any other partnership, successive partnership, company or successive company in which that partnership holds shares for the purposes of determining the value of the shares transferred; (ii) in the case where there has been a transfer of shares in a company, of the value of the immovable property forming part of the assets of that company or any other company, successive company, partnership or successive partnership in which that company holds shares for the purposes of determining the value of the shares transferred; or (iii) in any other case, of the value of the property being transferred stating the amount of duty or tax, if any. (2A) A notice under subsection (2) (b) shall— (a) be in a form approved by the Registrar-General; (b) give the basis of the assessment; and (c) be forwarded to the transferee and the transferor and if there are several, to any of them, by registered post within 7 months from the date of the registration of the deed. (3) Where the Registrar-General has given written notice under subsection (2) (b), the person to whom the notice has been given shall pay any duty or tax specified therein within 28 days of the date of the notice. (3A) Any person who is dissatisfied by a notice under subsection (2) (b), issued on or after 1 October 2008, may, within 28 days of the date of the notice, object to the notice by letter sent to the Registrar-General by registered post. (3B) Where it is proved to the satisfaction of the Registrar-General that, owing to illness or other reasonable cause, a person has been prevented from making an objection within the time specified in subsection (3A), the Registrar-G ys of the date of the notice. (3A) Any person who is dissatisfied by a notice under subsection (2) (b), issued on or after 1 October 2008, may, within 28 days of the date of the notice, object to the notice by letter sent to the Registrar-General by registered post. (3B) Where it is proved to the satisfaction of the Registrar-General that, owing to illness or other reasonable cause, a person has been prevented from making an objection within the time specified in subsection (3A), the Registrar-General may consider the objection. [Issue 5] L4 – 18 Revised Laws of Mauritius (3C) Where a person makes an objection under subsection (3A), he shall— (a) specify in his letter of objection, the grounds of the objection; and (b) at the same time pay to the Registrar-General 10 per cent of the amount of duty or tax excluding penalty, claimed in the notice under subsection (2) (b). (3D) Any objection under subsection (3A) shall be dealt with by an objection unit set up for that purpose. (3E) The objection unit under subsection (3D) shall consist of— (a) one representative of the Chief Government Valuer, not below the rank of Senior Government Valuer who shall be the Chairperson; and (b) 2 representatives of the Registrar-General, not below the rank of Chief Registration Officer. (3F) Where the Registrar-General considers an objection under subsection (3A) or (3B), he shall, by notice in writing— (a) amend the claim; or (b) maintain the claim. (3G) Where a notice is issued under subsection (3F) or (4A), the person shall pay the duty or tax claimed in the notice within 28 days of the date of the notice. (4) Any person who is aggrieved by a notice under subsection (3F) may lodge written representations with the Clerk to the Committee in accordance with section 19 of the Mauritius Revenue Authority Act. (4A) (a) Where— (i) an agreement is reached before the Committee; or (ii) a decision is made by the Committee, the Registrar-General, shall, within 5 working days from the date of the receipt of the notice of agreement or decision, as the case may be, issue a notice to the person specifying the amount of duty or tax payable. (b) Where a notice is issued to a person under paragraph (a), the person shall pay the amount of duty or tax within 28 days from the date of the notice. (4B) Where a person fails to pay the duty or tax under subsection (3G), section 37 shall apply. (4C) Where the value assessed under subsection (2)(b) is reduced pursuant to a decision under subsection (3F) or a decision of the Committee or determination of an appeal to the Supreme Court, as the case may be— (a) any amount of tax paid in excess shall be refunded to the transferor; and L4 – 19 [Issue 7] Land (Duties and Taxes) Act (b) any amount of duty paid in excess shall be refunded to the transferee, together with interest at the legal rate, free of income tax, from the date the payment is effected to the Registrar-General to the date it is refunded. (5) (a) Where a notice under subsection (2) (b) or (3F) is returned undelivered, the Registrar-General shall inscribe against the person liable to any additional duty or tax, on all properties belonging or which may subsequently belong to that person, a privilege for the additional duty or tax specified in the notice. (b) Notwithstanding section 44, the additional duty or tax secured by the privilege inscribed under paragraph (a) may be claimed at any time. (6) For the purpose of this section, the valuer shall, not more than 5 months (2) (b) or (3F) is returned undelivered, the Registrar-General shall inscribe against the person liable to any additional duty or tax, on all properties belonging or which may subsequently belong to that person, a privilege for the additional duty or tax specified in the notice. (b) Notwithstanding section 44, the additional duty or tax secured by the privilege inscribed under paragraph (a) may be claimed at any time. (6) For the purpose of this section, the valuer shall, not more than 5 months from the date of the registration of the deed of transfer, advise the Registrar-General of the open market value of the property as at that date of registration. (7) The valuer may— (a) require, by letter forwarded by registered post, the transferee or transferor including the person who acquires by prescription or by inheritance or legacy and the partnership to which property has been brought or, if there are several, any one of them, to show and identify, within such time as may be specified in the letter, the property under reference and to furnish such information as to enable the valuer to make an accurate assessment of the open market value of the property; (b) enter and inspect any property under reference after giving not less than 24 hours’ written notice to the transferee or occupier of the property. (7A) The Chief Government Valuer shall keep and maintain a valuation database, by district, in respect of every valuation of immovable property he makes and which shall consist of the entries specified in subsection (7B), kept on computer or other electronic device at the office of the Chief Government Valuer. (7B) The entries referred to in subsection (7A) shall include, in respect of each immovable property— (a) a brief description of the immovable property, including particulars of transcription, extent of land, area of building in square metres and its location including the town or village and street name; (b) the full name of the transferor and transferee; (c) an indication as to whether the building is for residential, business, commercial or industrial purposes; (d) the value of the immovable property, as specified in the deed of transfer; and [Issue 7] L4 – 20 Revised Laws of Mauritius (e) the open market value of the immovable property estimated by the Chief Government Valuer, the methodology and the key parameters used including the valuation of another immovable property used as comparison and its reference in the database. (8) A valuer, other than a Government Valuer, shall, in relation to any valuation made by him under this section, be paid such fee as the Minister may determine. (9) Subsection (2) shall not apply in relation to a deed witnessing the transfer of an immovable property— (a) from a company holding a certificate in respect of a project under the Investment Promotion (Real Estate Development Scheme) Regulations 2007, the Investment Promotion (Property Development Scheme) Regulations 2015 or the Investment Promotion (Invest Hotel Scheme) Regulations 2015; or (b) to a non-citizen issued with an authorisation from the Economic Development Board under the Non-Citizens (Property Restriction) Act. [S. 28 amended by s. 5 of Act 15 of 1988 w.e.f. 1 July 1988; s. 6 of Act 20 of 1988 w.e.f. 16 July 1988; s. 11 (d) of Act 22 of 1989 w.e.f. 1 July 1989; s. 5 (b) of Act 30 of 1990 w.e.f. 24 July 1990; s. 11 (d) of Act 23 of 1992 w.e.f. 1 July 1992; s. 7 of Act 23 of 1993 w.e.f. 1 November 1993; s. 14 (j) of Act 23 of 2001 w.e. Hotel Scheme) Regulations 2015; or (b) to a non-citizen issued with an authorisation from the Economic Development Board under the Non-Citizens (Property Restriction) Act. [S. 28 amended by s. 5 of Act 15 of 1988 w.e.f. 1 July 1988; s. 6 of Act 20 of 1988 w.e.f. 16 July 1988; s. 11 (d) of Act 22 of 1989 w.e.f. 1 July 1989; s. 5 (b) of Act 30 of 1990 w.e.f. 24 July 1990; s. 11 (d) of Act 23 of 1992 w.e.f. 1 July 1992; s. 7 of Act 23 of 1993 w.e.f. 1 November 1993; s. 14 (j) of Act 23 of 2001 w.e.f. 11 August 2001; s. 17 (h) of Act 20 of 2002 w.e.f. 10 August 2002; s. 12 (f) of Act 28 of 2004 w.e.f. 26 August 2004; s. 27 (12) (d) of Act 33 of 2004 w.e.f. 1 July 2006; s. 19 (j) of Act 15 of 2006 w.e.f. 7 August 2006; s. 19 (c) of Act 17 of 2007 w.e.f. 22 August 2007; s. 18 of Act 18 of 2008 w.e.f. 19 July 2008 and 1 October 2008; s. 13 (d) of Act 20 of 2009 w.e.f. 19 December 2009;s. 14 (e) of Act 26 of 2012 w.e.f. 22 December 2009; s. 32 (a) of Act 9 of 2015 w.e.f. 14 May 2015; s. 30 (a) of Act 18 of 2016 w.e.f. 7 September 2016.]