Section 35: Penalty for undervaluation

35. Penalty for undervaluation (1) Where the open market value of a property, as revised under section 28 or as determined by the Committee, exceeds the value of the property as specified in the deed of transfer, the Registrar-General shall, subject to subsection (2), impose and claim from the transferee or the transferor, as the case may be, in addition to the amount of the duty and taxes claimed, a penalty representing, where the difference between the open market value and the value specified in the deed— (a) is between 10 and 50 per cent of the value specified in the deed, 20 per cent of that amount; or (b) exceeds 50 per cent of the value specified in the deed, 50 per cent of that amount. (2) Subsection (1) shall not apply where the transfer is made by a descendant or his spouse to an ascendant or his spouse or between brothers and sisters and their spouses. [S. 35 amended by Act 23 of 1993; Act 9 of 1997; s. 14 (l) of Act 23 of 2001 w.e.f. 11 August 2001; s. 12 (h) of Act 28 of 2004 w.e.f. 26 August 2004; repealed and replaced by s. 19 (l) of Act 15 of 2006 w.e.f. 7 August 2006; amended by s. 16 (b) of Act 20 of 2011 w.e.f. 16 July 2011.]