Section 27: Derogation from liability to duty

27. Derogation from liability to duty (1) Where duty is paid under section 26 (a) by an officer on a document, the officer may apply to a Judge for an order for the recovery of the duty from the parties at whose request the document is drawn up. (2) Section 26 (g) and (h) shall not apply where the document makes express provision for the payment of duty by a person other than the debtor or the transferee, as the case may be. (2A) (a) Notwithstanding this Act or any other enactment, a deed witnessing the purchase of a portion of freehold land by a company, during the period from 1 January 2012 to 30 June 2019, under the construction project of housing estates registered under section 161A (46) of the Income Tax Act for the construction of at least 5 residential units, shall be exempted from registration duty under this Act. (b) Where the Registrar-General is notified, under section 161 (47) of the Income Tax Act, that the company referred to in paragraph (a) fails to comply with the conditions specified in section 161A (46) of that Act, he shall, by written notice sent by registered post, claim the registration duty, together with a penalty of 20 per cent of the amount of duty exempted, from the said company. (c) Where land planned to be used for the construction project of a housing estate registered under section 161A (46) of the Income Tax Act is not fully utilised, the Registrar-General shall claim the duty exempted under paragraph (a) in relation to that part of the unutilised land in the same manner as specified in paragraph (b), together with a penalty equal to 20 per cent of the amount of duty exempted. (3) (a) Notwithstanding this Act or any other enactment but subject to paragraph (b), the duty leviable under this Act on any deed witnessing the transfer of— (i) a portion of freehold bare land; or (ii) the right to construct a residential building on top of an existing building (droit de surélévation) on a freehold land together with his quote-part, shall be reduced by the amount of the duty leviable or 100,000 rupees, whichever is the lesser. R15 – 15 [Issue 9] Registration Duty Act (b) A transferee shall qualify for a reduction under paragraph (a) provided that— (i) he acquires the portion of freehold bare land, or the right to construct a residential building on top of an existing building (droit de surélévation) together with his quote-part on a freehold land, for the sole purpose of constructing a residential building; (ii) he undertakes to start the construction of the residential building within a period of one year, and to complete the construction within a period of 3 years, from the date of transfer; (iii) he or his spouse has not already benefitted from any reduction under this subsection or subsection (5) on or after 29 July 2016; (iv) he or his spouse was not the sole owner of any immovable property in or outside Mauritius as at 29 July 2016; (v) where he or his spouse is or was the co-owner of any immovable property, the immovable property was acquired by inheritance and is, or was, not of an extent exceeding 422 square metres; (va) where he or his spouse is or was the co-owner of an immovable property, the immovable property is or was acquired before9 November 2012 and is, or was, not of an extent exceeding 211 square metres; (vi) the total income of the transferee and his spouse, in the income year in which the transfer is made, does not exceed, in the aggregate, 2 million rupees; (vii) he is a citizen of Mauriti ovable property was acquired by inheritance and is, or was, not of an extent exceeding 422 square metres; (va) where he or his spouse is or was the co-owner of an immovable property, the immovable property is or was acquired before9 November 2012 and is, or was, not of an extent exceeding 211 square metres; (vi) the total income of the transferee and his spouse, in the income year in which the transfer is made, does not exceed, in the aggregate, 2 million rupees; (vii) he is a citizen of Mauritius; (viii) the transfer is not in respect of an immovable property, or any part thereof, acquired under the Investment Promotion (Real Estate Development Scheme) Regulations 2007; and (ix) the extent of the immovable property does not exceed 844 square metres or 20 perches. (4) (a) A deed of transfer referred to in subsections (3) (a) and 5 (a) shall contain a declaration that the transferee qualifies for the reduction and shall be accom-panied by a declaration of the transferee, in 2 originals, in such form as the Registrar-General and the Director-General may approve. (b) The declaration under paragraph (a) shall contain— (i) the full name and address of the transferee, his National Identity Card number and tax account number, if any; (ii) a statement in the terms of subsection (3) (b). [Issue 9] R15 – 16 Revised Laws of Mauritius (5) (a) Notwithstanding this Act or any other enactment but subject to paragraph (b), the duty leviable under this Act on any deed witnessing transfer of— (i) a residential lot which is the subject of a duly registered and transcribed deed witnessing a ‘règlement de co-propriété’ in accordance with articles 664 and 664-1 to 664-94 of the Code Civil Mauricien; or (ii) a portion of freehold land with a residential building thereon, shall be reduced by the amount of the duty leviable or 200,000 rupees, whichever is the lesser. (b) A transferee shall qualify for a reduction under paragraph (a) provided that— (i) the transfer is in relation to— (A) a residential lot which is the subject of a duly registered and transcribed deed witnessing a ‘règlement de co-propriété’ in accordance with articles 664 and 664-1 to 664-94 of the Code Civil Mauricien; or (B) a portion of freehold land with a residential building thereon; (ii) he or his spouse has not already benefitted from any reduction under subsection (3) or this subsection on or after 29 July 2016; (iii) he or his spouse was not the sole owner of any immovable property in or outside Mauritius as at 29 July 2016; (iv) where he or his spouse is or was the co-owner of any immovable property, the immovable property was acquired by inheritance and is, or was, not of an extent exceeding 422 square metres; (iva) where he or his spouse is or was the co-owner of an immovable property, the immovable property is or was acquired before 9 November 2012 and is, or was, not of an extent exceeding 211 square metres; (v) the total income of the transferee and his spouse, in the income year in which the transfer is made, does not exceed, in the aggregate, 2 million rupees; (vi) he is a citizen of Mauritius; (vii) the transfer is not in respect of an immovable property situated on Pas Géométriques or acquired under the Investment Promotion (Real Estate Development Scheme) Regulations 2007, the Investment Promotion (Property Development Scheme) Regulations 2015 or the Investment Promotion (Investment Hotel Scheme) Regulations 2015; and R15 – 16 (1) [Issue 9] Registration Duty Act (viii) the v the transfer is made, does not exceed, in the aggregate, 2 million rupees; (vi) he is a citizen of Mauritius; (vii) the transfer is not in respect of an immovable property situated on Pas Géométriques or acquired under the Investment Promotion (Real Estate Development Scheme) Regulations 2007, the Investment Promotion (Property Development Scheme) Regulations 2015 or the Investment Promotion (Investment Hotel Scheme) Regulations 2015; and R15 – 16 (1) [Issue 9] Registration Duty Act (viii) the value of the residential lot or the portion of freehold land with a residential building thereon referred to in paragraph (a) does not exceed 4 million rupees. continued on page R15 – 17 [Issue 9] R15 – 16 (2) Revised Laws of Mauritius (5A) (a) Notwithstanding this Act or any other enactment, but subject to paragraph (b), any deed of transfer registered on or before 30 June 2020, witnessing the transfer or vente en état futur d’achèvement (VEFA) to a citizen of Mauritius, of a housing unit forming part of the construction project of housing estates registered under section 161A (46) of the Income Tax Act— (i) from 1 January 2012 to 31 December 2012; and (ii) from 1 January 2013 to 30 June 2019, shall, subject to paragraph (aa), be exempted from payment of registration duty under this Act. (aa) No exemption shall be granted under paragraph (a) where, in respect of a housing unit under— (i) paragraph (a) (i), the value of the housing unit exceeds 2.5 million rupees; or (ii) paragraph (a) (ii), the value of the housing unit exceeds 6 million rupees. (b) A transferee shall qualify for the exemption under paragraph (a), provided that— (i) the transfer is in relation to the construction project of at least 5 residential units; (ii) he or his spouse has not already benefitted from any reduction under subsection (3) or this subsection on or after 29 July 2016; (iii) he or his spouse was not the sole owner of any immovable property in or outside Mauritius as at 29 July 2016; (iv) where he or his spouse is, or was, the co-owner of any immovable property, the immovable property was acquired by inheritance and is, or was, not of an extent exceeding 422 square metres; (iva) where he or his spouse is or was the co-owner of an immovable property, the immovable property is or was acquired before9 November 2012 and is, or was, not of an extent exceeding 211 square metres; (v) the total income of the transferee and his spouse, in the income year in which the transfer is made, does not exceed, in the aggregate, 2 million rupees; (vi) he is a citizen of Mauritius; and (vii) the transfer is not in respect of an immovable property situated on Pas Géométriques or acquired under the Investment Promotion (Real Estate Development Scheme) Regulations 2007, the Investment Promotion (Property Development Scheme) Regulations 2015 or the Investment Promotion (Investment Hotel Scheme) Regulations 2015. R15 – 17 [Issue 9] Registration Duty Act (5B) (a) Notwithstanding this Act or any other enactment, but subject to paragraph (c), the duty leviable under this Act in respect of any deed of transfer to an individual witnessing the transfer of a newly-built dwelling on or before 30 June 2020, shall be reduced by the amount of the duty leviable or 300,000 rupees, whichever is the lesser. (b) A transferee shall qualify for a reduction under paragraph (a) provided that— (i) he is a citizen of Mauritius; (ii) the transfer is not in relation to a newly-built dwelling situated on Pas Géomé enactment, but subject to paragraph (c), the duty leviable under this Act in respect of any deed of transfer to an individual witnessing the transfer of a newly-built dwelling on or before 30 June 2020, shall be reduced by the amount of the duty leviable or 300,000 rupees, whichever is the lesser. (b) A transferee shall qualify for a reduction under paragraph (a) provided that— (i) he is a citizen of Mauritius; (ii) the transfer is not in relation to a newly-built dwelling situated on Pas Géométriques or acquired 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; (iii) the value of the newly-built dwelling referred to in paragraph (a) does not exceed 6 million rupees. (c) In this subsection— “newly-built dwelling”— (a) means a portion of freehold land with a residential building thereon or a residential lot which is the subject of a duly registered and transcribed deed witnessing a règlement de copropriété in accordance with articles 664 and 664-1 to 664-94 of the Code Civil Mauricien, which has never been occupied before the present sale; and (b) includes a residential building which is being acquired on the basis of a plan or during the construction phase, governed by the provisions of a vente à terme or vente en létat futur d'àchèvement (VEFA), as the case may be, in accordance with articles 1601-1 to 1601-45 of the Code Civil Mauricien. (6) (a) A deed of transfer referred to in subsection (5A) shall contain a declaration that the transferee qualifies for the reduction and shall be accompanied by a declaration of the transferee, in 2 originals, in such form as the RegistrarGeneral and the Director-General may approve. (b) The declaration under paragraph (a) shall contain— (i) the full name and address of the transferee, his National Identity Card number and tax account number, if any; (ii) a statement in the terms of subsection (5) (b). (7) Where the reduction under subsection (3) or (5) is granted and thereafter it is found that— (a) the declaration given by the transferee under subsection (4) or (6) is incorrect, false or misleading in any material particular; or [Issue 9] R15 – 18 Revised Laws of Mauritius (b) the total income of the transferee and his spouse, in the income year in which the transfer is made, exceeds, in the aggregate, 2 million rupees, the Director-General shall, by written notice sent by registered post, require the transferee to pay, within the time specified in the notice, the amount of the reduction of the duty granted together with a penalty equal to 25 per cent of that amount. (8) Any person who knowingly makes a declaration under subsection (4) or (6) which is incorrect, false or misleading in any material particular shall commit an offence and shall, on conviction, be liable to a fine not exceeding 50,000 rupees. (9) Where a claim under subsection (7) is made and the transferee fails to pay the amount claimed, the Director-General shall apply Part IX of the Value Added Tax Act to the amount claimed, with such modifications, adaptations and exceptions as may be necessary to bring them in conformity with this section. (10) In this section— “total income” has the same meaning as in section 16A of the Income Tax Act. [S. 27 amended by s. 23 (e) of Act 25 of 2000 w.e.f. 11 August 2000; s. 25 (h) of Act 15 of 2006 w.e.f. 7 August 2006; s. 14 n (7) is made and the transferee fails to pay the amount claimed, the Director-General shall apply Part IX of the Value Added Tax Act to the amount claimed, with such modifications, adaptations and exceptions as may be necessary to bring them in conformity with this section. (10) In this section— “total income” has the same meaning as in section 16A of the Income Tax Act. [S. 27 amended by s. 23 (e) of Act 25 of 2000 w.e.f. 11 August 2000; s. 25 (h) of Act 15 of 2006 w.e.f. 7 August 2006; s. 14 (b) of Act 10 of 2010 w.e.f. 4 January 2011; s. 15 (b) of Act 37 of 2011 w.e.f. 15 December 2011; s. 23 (k) of Act 26 of 2012 w.e.f. 22 December 2012; s. 20 (c) of Act 26 of 2013 w.e.f. 1 January 2014; s. 44 (d) of Act 9 of 2015 w.e.f. 14 May 2015; s. 43 (b) of Act 18 of 2016 w.e.f. 7 September 2016.]