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CROSS RIVER – STAMP DUTIES (EVIDENCE) LAW

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LAWS OF CROSS RIVER STATE

STAMP DUTIES (EVIDENCE) LAW

ARRANGEMENT OF SECTIONS

SECTION

CHAPTER S9

 

  1. Instruments stamped in other States, receivable in evidence in Cross River State.
  2. Short title.

CHAPTER S9

STAMP DUTIES (EVIDENCE) LAW

A Law to provide for the receiving in Evidence of Documents duly stamped in accordance with the Law of a State of the Federation of Nigeria other than Cross River State.

(3rd January, 1956)

[Commencement.]

  1. Instruments stamped in other States receivable in evidence in Cross River State

Notwithstanding the provisions of the Stamp Duties Law an instrument executed within the Federation of Nigeria or relating, wheresoever executed, to any property situate or to any matter or thing done, or to be done, within the Federation of Nigeria shall be receivable in evidence in any court of civil judicature in Cross River State or before any arbitrator or referee or be available for any purposes whatsoever within Cross River State, provided that it isstamped in accordance with the law in force in the State in which it was stamped, at the time it was stamped.

  1. Short title

This Law may be cited as the Stamp Duties (Evidence) Law.

 

CHAPTER S9

STAMP DUTIES (EVIDENCE) LAW

SUBSIDIARY LEGISLATION

No Subsidiary Legislation

 

CHAPTER S10

STAMP DUTIES LAW

ARRANGEMENT OF SECTIONS

PART 1

Provisions applicable to Instruments Generally

CHARGE OF DUTY UPON INSTRUMENTS

SECTION

  1. Charge of duties in Schedule.
  2. Manner of denoting duty.

APPOINTMENT OF COMMISSIONERS

  1. Commissioners of stamp duties.
  2. Discontinuance and issue of dies.
  3. Instruments to be separately charged with duty in certain cases.
  4. Facts and circumstances affecting duty to be set forth in instrument.
  5. Mode of calculating ad valorem duty in certain cases.

USE OF ADHESIVE STAMPS

  1. Cancellation of adhesive stamps.
  2. Proper time for stamping instruments.
  3. Penalty for fraud in relation to adhesive stamps.

APPROPRIATED STAMPS

  1. Appropriated stamps.

ADJUDICATION BY A COMMISSIONER

  1. As to denoting certificate.
  2. The commissioner may be required to express his opinion as to duty.
  3. The commissioner may call for and refuse to proceed without evidence.
  4. Persons authorised to take declarations and affidavits.
  5. Effect of assessment by commissioner and payment of duty in accordance therewith.
  6. Two commissioner not to adjudicate on same instrument.
  7. Person dissatisfied may appeal.
  8. Terms upon which instruments not duly stamped may be received in evidence.

STAMPING OF INSTRUMENTS AFTER EXECUTION

  1. Stamping of instruments after execution.

ENTRIES UPON ROLLS, BOOKS AND DOCUMENTS

SECTION

  1. Certain Rolls and books to be open to inspection.
  2. Penalty for enrolling instrument not stamped.

DESTRUCTION OF UNCLAIMED INSTRUMENTS

  1. Destruction of unclaimed instruments.

PART 2

Regulations Applicable to Particular Instruments

ADMISSION

  1. Mode of denoting duty.

AGREEMENTS

  1. Adhesive stamps may be used for agreements.
  2. Certain mortgages of stock to be chargeable as agreements.
  3. Hire purchase agreement to be stamped.

APPRAISEMENTS

  1. Definition of “appraiser”.
  2. Appraisements to be written out.

INSTRUMENTS OF APPRENTICESHIP

  1. Meaning of instrument of apprenticeship.

BILLS OF LADING

  1. Bills of lading.

BILLS OF SALE

  1. Bills of sale.

CHARTER-PARTIES

  1. Provisions as to duty on charter-party.
  2. Charter-parties executed abroad.
  3. Terms upon which charter-parties may be stamped after execution.

CONTRACT NOTES

  1. Provisions as to contract notes.
  2. Obligation to execute contract note.
  3. Extension of provisions as to contract notes to sale or purchase of options.

CONVEYANCES ON SALE

SECTION

  1. Meaning of “conveyance on sale”.
  2. How ad valorem duty is to be calculated in respect of stock and securities.
  3. How consideration consisting of periodical payments to be charged.
  4. Conveyance on sale with further covenant.
  5. How conveyance in consideration of a debt is to be charged.
  6. Direction as to duty in certain cases.
  7. Certain contracts to be chargeable as conveyances on sale.
  8. Where interest in land transferred by sale and possession without a conveyance.
  9. As to sale of an annuity or right not before in existence.
  10. Principal instrument, how to be ascertained.
  11. Duty payable in certain cases under Law on vesting of property.
  12. Duty on gifts inter vivos.
  13. Licence with a grant to enter upon land.

CONVEYANCES ON ANY OCCASION EXCEPT SALE OR MORTGAGE

  1. What is to be deemed a conveyance on any occasion not being a sale or mortgage.

DUPLICATES AND COUNTERPARTS

  1. Provision as to duplicates and counterparts.

EXCHANGE AND PARTITION OR DIVISION

  1. As to exchange, partition or division.

LEASES

  1. Agreements to be charged as lease.
  2. Leases, how to be charged in respect of produce.
  3. Directions as to duty in certain cases.
  4. Duty on certain leases may be denoted by adhesive stamp.

LETTERS OR POWERS OF ATTORNEY AND VOTING PAPERS

  1. Provisions as to proxies and voting papers.
  2. Powers by more than one person or to more than one person to count as one power.

MARKETABLE SECURITIES

  1. Meaning of “marketable securities”.
  2. Meaning of marketable security transferable on delivery and instrument to bearer.
  3. Marketable security transferable on delivery to be stamped on execution.
  4. Duty reduced in case of short-term marketable securities.

MORTGAGES

SECTION

  1. Meaning of “mortgage”: “equitable mortgage”.
  2. Direction as to duty in certain cases.
  3. Security for future advances, how to be charged.

NOTARIAL ACT

  1. Duty on notarial acts may be denoted by adhesive stamps.

RECEIPTS

  1. Provisions as to duty upon receipts.
  2. Certain forms of receipts not dutiable.
  3. Terms upon which receipts may be stamped after execution and used in evidence unstamped.
  4. Penalty for offences in reference to receipts.

SETTLEMENTS

  1. As to settlement of policy or security.
  2. Settlements; when not to be charged as securities.
  3. Where several instruments, one only to be charged with ad valorem duty.

WARRANT FOR GOODS

  1. Meaning and provisions as to warrants for goods.

PART 3

Supplemental

  1. Innocent person suffering loss may recover against guilty person.
  2. Power to make regulations for compounding duty.
  3. Conditions and agreements as to duty avoid.
  4. Provision for remission of duty in certain cases.
  5. Duty and debts recoverable with fines and penalties.
  6. Duties and fines may be recovered summarily.
  7. Fixed penalties.
  8. Power to mitigate fines and stay proceedings.
  9. Fines and penalties recoverable within five years.
  10. Power to make regulations relating to stamp duties.
  11. Schedule may be varied by resolution and order.

PART 4

Preliminary

  1. Interpretation.
  2. Citation.

SCHEDULE

CHAPTER S10

STAMP DUTIES LAW

A Law to provide for the levying of Stamp Duties in certain cases.

(1st April, 1939)

[Commencement.]

PART 1

Provisions Applicable to Instruments Generally

CHARGE OF DUTY UPON INSTRUMENTS

  1. Charge of duties in Schedule

(1)      From and after the commencement of this Law the duties to be charged upon the several instruments specified in the Schedule shall be the several duties in the said Schedule specified, which duties shall be in substitution for the duties heretofore chargeable under the enactments repealed by the Stamp Duties Act and shall be subject to the exemptions contained in this Law and in any other Law for the time being in force.

(2)      The duties charged under this Law shall be accounted for in a manner to be prescribed by the Commissioner.

(3)      The functions under this Law of the Executive Council, and of a Commissioner appointed by the Public Service Commission shall be confined to matters in respect of which the Government of the State shall be competent to make laws:

Provided that nothing herein shall be interpreted as preventing the appointment under section 5 (f) of the Stamp Duties Act and under section 5 of this Law of the same person to be both a Federal commissioner under that Act and a State commissioner under this Law.

  1. Manner of denoting duty

(1)      All duties for the time being chargeable under the provisions of this Law upon any instruments are to be paid and denoted according to the provisions in this Law contained, and, except where express provision is made to the contrary in this Law or by the regulations made hereunder, are to be denoted by impressed stamps only. Where the duty may be denoted by adhesive stamps, postage stamps may, subject to the provisions of any Law or regulation, be used for the purpose.

(2)      Every instrument written upon stamped material is to be written in such a manner, and every instrument partly or wholly written before being stamped is to be so stamped, that the stamp may appear on the face of the instrument and cannot be used or applied to any other instrument written upon the same piece of material.

(3)      No impressed or embossed stamp or stamps made by means of a die may be used in any manner except upon the document upon which it was originally.

(4)      The amount of the duty upon any instrument may be denoted by several stamps and stamps of greater value than is required may be used upon any instrument.

APPOINTMENT OF COMMISSIONERS

  1. Commissioners of stamp duties

(1)      The Civil Service Commission may appoint one or more officers who shall be commissioners of stamp duties and shall have the care and management of the duties to be taken under this Law.

(2)      Save as otherwise provided by this Law or by any law for the time being in force, any decision, act or thing required to be made or done by a commissioner may be made or done by any one of the said commissioners when there is more than one commissioner.

(3)      When appointing a commissioner the Civil Service Commission may signify that the duty of such commissioner be confined to adjudication under section 13 of this Law.

  1. Discontinuance and issue of dies

(1)      Until discontinued as hereinafter provided, the dies for impressed revenue stamps in use at the coming into force of this Law shall continue to be used, and the commissioners may, from time to time, procure new dies of the same design.

(2)      No die of new design of impressed revenue stamp may be used without the approval of the Commissioner and a notification of such approval shall be published in the State Gazette at least one month before such new die shall be used.

(3)      The Commissioner may by notice in the State Gazette determine to discontinue the use of any die for the use of a revenue stamp and provide a new die to be used in lieu thereof:

then from and after any day to be stated in the notice (such day not being within one month after the same is so published) the new die shall be the only lawful die for denoting the duty chargeable in any case in which the discontinued die would have been used; and every instrument first executed by any person, or bearing date after the day so stated, and stamped with the discontinued die, shall be deemed to be not duly stamped:

Provided that—

(a)      if any instrument stamped as least aforesaid, and first executed after the day so stated at any place out of Cross River State is brought to a commissioner within twenty-one days after it has been received in the State, then upon proof of the facts to the satisfaction of the commissioner the stamps thereon shall be cancelled and the instrument shall be stamped with the same amount of duty by means of the lawful die, without the payment of any penalty;

(b)      all persons having in their possession any material stamped with the discontinued die, and which by reason of the providing of such new die has been rendered useless, may at any time within six months after the day stated in the notice, send the said material to the Accountant-General who shall cause the stamp on such material to be cancelled and refund the amount of duty paid upon such material.

  1. Instruments to be separately charged with duty in certain cases

Except where express provision to the contrary is made by this or any other Law—

(a)      an instrument containing or relating to several distinct matters is to be separately and distinctly charged, as if it were a separate instrument, with duty in respect of each of such matters;

(b)      an instrument made for any consideration or consideration in respect whereof it is chargeable with ad valorem duty, and also for any further or other valuable consideration, or considerations, is to be separately and distinctly charged, as if it were a separate instrument, with duty in respect of each of the considerations.

  1. Facts and circumstances affecting duty to be set forth in instrument

All the facts and circumstances affecting the liability of any instrument to duty, or the amount of the duty with which any instrument is chargeable, are to be fully set forth in the instrument; and every person who, with intent to defraud the Government of Cross River State—

(a)      executes any instrument in which all the said facts and circumstances are not fully and truly set forth; or

(b)      being employed or concerned in or about the preparation of any instrument neglects or omits fully and truly to set forth therein all the said facts and circumstances, shall incur a fine of forty naira.

  1. Mode of calculating ad valorem duty in certain cases

(1)      Where an instrument is chargeable with ad valorem duty in respect of—

(a)      any money in any foreign or local currency; or

(b)      any stock or marketable security, the duty shall be calculated on the value, on the day of the date of the instrument, of money in Nigerian currency according to the current rate of exchange, or of the stock or security according to the average price thereof.

(2)      Where an instrument contains a statement of current rate of exchange, or average rate of exchange, or average price, as the case may require, and is stamped in accordance with that statement, it is, so far as regards the subject-matter of the statement, to be deemed duly stamped, unless or until it is shown that the statement is untrue, and that the instrument is in fact insufficiently stamped.

USE OF ADHESIVE STAMPS

  1. Cancellation of adhesive stamps

(1)      An instrument, the duty upon which is required or permitted by law to be denoted by an adhesive stamp, is not required by law to cancel such adhesive stamp, cancels the same by writing on or across the stamp his name or initials, or the name or initials of his firm, together with the true date of his so writing, or otherwise effectively cancels the stamp and renders the same incapable of being used for any other instrument or for any postal purpose or for payment of a telegram:

Provided that, when the person required by law to cancel an adhesive stamp shall be an illiterate person, the stamp shall be deemed to be sufficiently cancelled, if the mark of such person together with the true date of the making thereof, be written on or across such stamp.

(2)      When two or more adhesive stamps are used to denote the duty upon an instrument, each or every stamp is to be cancelled in the manner aforesaid.

(3)      Every person who, being required by law to cancel an adhesive stamp, neglects or refuses duly and effectively to do so in the manner aforesaid, shall incur a fine of twenty naira.

  1. Proper time for stamping instruments

Every instrument first executed in the State which by law may be or is required to be stamped with an adhesive stamp shall be stamped on or before its first execution, and such stamp shall be cancelled by the person by whom the instrument is first executed and at the time of such execution:

Provided that where an instrument is prepared or attested by or executed before a commissioner of oaths, a justice of the peace or a notary public, such stamp shall be cancelled by such commissioner of oaths, justice of the peace or notary public at the time of its first execution.

  1. Penalty for fraud in relation to adhesive stamps

(1)      If any person—

(a)      fraudulently removes or causes to be removed from any instrument any adhesive stamp, or affixes to any other instrument any adhesive stamp which has been so removed, with intent that the stamp may be used again; or

(b)      sells or offers for sale, or utters any adhesive stamp which has been so removed, or utters any instrument having thereon any adhesive stamp which has to his knowledge been so removed as aforesaid, he shall, in addition to any other fine or penalty to which he may be liable, incur a fine of one hundred naira.

(2)      The expression “instrument” in this section includes a telegram and any postal articles within the meaning of the Post Office Act.

APPROPRIATED STAMPS

  1. Appropriated stamps

(1)      A stamp which by any word or words on the face of it is appropriated to any particular description of instrument is not to be used, or if used, is not to be available, for an instrument of any other description.

(2)      An instrument falling under the particular description to which any stamp is so appropriated as aforesaid is not to be deemed duly stamped, unless it is stamped with the stamp so appropriated.

ADJUDICATION BY A COMMISSIONER

  1. As to denoting certificate

Where the duty with which an instrument is chargeable depends in any manner upon the duty paid upon another instrument, the payment of such last-mentioned duty shall, upon the application to a commissioner, payment of a fee of twenty-five kobo and production of both the instruments, be denoted upon such first-mentioned instrument by a certificate under the hand of the commissioner.

  1. The commissioner may be required to express his opinion as to duty

(1)      Subject to such regulations as the State Commissioner may think fit to make, a commissioner may be required by any person to express his opinion with reference to the amount of duty (if any) payable on any executed instrument. In such case, a certificate shall be endorsed on the instrument, under the hand of the commissioner, stating that, in his opinion, such instrument is not chargeable with any duty, or the particular amount with which, in his opinion, it is chargeable or, if in his opinion such is the case, that it is duly stamped:

Provided that nothing in this section shall extend to any instrument chargeable with ad valorem duty and made as a security for money or stock without limit; or shall authorise the stamping after the execution thereof of any instrument which by law cannot be stamped after execution.

(2)      An adhesive stamp for the fee prescribed under sections 12 and 52 shall be supplied to the commissioner by the person requiring the certificate at the time when the application for the certificate is made and such stamp shall be fixed to the instrument by the commissioner and cancelled by him prior to giving the certificate.

  1. The commissioner may call for and refuse to proceed without evidence

In any case of application to a commissioner with reference to any instrument the commissioner may require to be furnished with such evidence by means of affidavit or otherwise as he may deem necessary in order to show to his satisfaction whether all the facts and circumstances affecting the liability of the instrument to duty, or the amount of the duty chargeable thereon, are fully and truly set forth therein, and may refuse to proceed upon any such application until such evidence has been furnished accordingly.

  1. Persons authorised to take declarations and affidavits

Any statutory declaration or affidavit made in pursuance of or for the purposes of this Law or any other Law for the time being in force relating to stamp duties may be made before any of the commissioners or any other person authorised by law to administer oaths.

  1. Effect of assessment by commissioner and payment of duty in accordance therewith Every instrument bearing a certificate of a commissioner that it is not chargeable with duty or that it is duly stamped, or being stamped with the amount of duty assessed and certified by him shall be admissible in evidence and available for all purposes, notwithstanding any objection relating to duty:

Provided that an instrument upon which the duty has been assessed by a commissioner shall not be stamped otherwise than in accordance with the assessment of the commissioner.

  1. Two commissioners not to adjudicate on same instrument

Any person, other than a public officer in the exercise of his official duties who, after an instrument has been submitted to a commissioner for his opinion as to the amount of duty with which the instrument is chargeable, subsequently submits the same instrument to a different commissioner for an expression of his opinion as to the amount of duty with which the instrument is chargeable shall be guilty of an offence and shall incur a fine of twenty naira.

  1. Person dissatisfied may appeal

(1)      Any person who is dissatisfied with the assessment of a commissioner may, within twenty-one days after the date of the assessment, and on payment of duty in conformity therewith, appeal against the assessment to the High Court and may for that purpose require the commissioner to state and sign a case, setting forth the question upon which his opinion was required, and the assessment made by him.

(2)      The commissioner shall thereupon state and sign a case and deliver the same to the person by whom it is required, and the case may, within seven days thereafter but no later, be filed by him in the High Court and thereafter be heard by the said court.

(3)      Upon the hearing of the case the court shall determine the question submitted, and, if the instrument in question is in the opinion of the court chargeable with any duty, shall assess the duty with which it is chargeable.

(4)      If it is decided by the court that the assessment of the commissioner is wrong, the court shall assess the correct amount of duty; and—

(a)      in the event of an excess of duty having been paid in conformity with the erroneous decision of the commissioner any excess of duty which may have been paid in conformity with such decision, together with any fine or penalty which may have been paid in consequence thereof, shall be ordered by the court to be repaid to the appellant, with or without costs as the court may determine; and

(b)      in the event of the court assessing an amount of duty greater than that assessed by the commissioner the difference between the amount of duty assessed by the commissioner and the amount assessed by the court together with any fine or penalty which may have been incurred but not yet paid, with or without costs as the court may determine, shall be paid by the appellant, forthwith or within such time as the court may direct, in stamps which shall be affixed to or impressed on the document in the presence of a commissioner and in the case of adhesive stamps cancelled by him.

  1. Terms upon which instruments not duly stamped may be received in evidence

(1)      Upon the production of an instrument chargeable with any duty as evidence in any court of civil judicature in Cross River State or before any arbitrator or referee, notice shall be taken by the judge, magistrate, arbitrator, or referee of any omission or insufficiency of the stamps thereon, and if the instrument is one which may legally be stamped after the execution thereof, it may, on payment to the officer of the court whose duty it is to read the instrument, or to the arbitrator or referee, of the amount of the unpaid duty, and the penalty payable on stamping the same, and of a further sum of two naira, be received in evidence, saving all just exceptions on other grounds.

(2)      The officer, or arbitrator, or referee receiving the duty and penalty shall give a receipt for the same, and make an entry in the proper book kept for the purpose of showing receipts of money and of the amount thereof, and shall communicate to a commissioner the name or title of the proceedings in which and of the party from whom, he received the duty and penalty, and the date and description of the instrument, and shall pay over to the Accountant-General the money so received by him for the duty and penalty.

(3)      On production to the commissioner of any instrument in respect of which any duty or penalty has been paid, together with the receipt, the payment of the duty and penalty shall be denoted on the instrument.

(4)      Save as aforesaid and subject to the provisions of section 73 (3) an instrument executed in Nigeria, or relating, wheresoever executed, to any property situate or to any matter or thing done or to be done in Nigeria, shall not, except in criminal proceedings, be given in evidence, or be available for any purpose whatever, unless it is duly stamped in accordance with the law in force in Nigeria at the time when it was first executed.

STAMPING OF INSTRUMENTS AFTER EXECUTION

  1. Stamping of instruments after execution

(1) (a) Save where other express provision is in this Law made, any unstamped or insufficiently stamped instrument may be stamped with an impressed stamp at any time within forty days from the first execution thereof (unless such period of forty days is reduced by order as hereinafter in subsection (7) provided) upon payment of the duty or unpaid duty only but after that time the said instrument may only be stamped upon payment of the unpaid duty and a penalty of twenty naira; and also by way of further penalty, where the unpaid duty exceeds twenty naira, of interest on such duty, at the instrument was first executed up to the time when the amount of interest is equal to the unpaid duty.

(b)      Stamps representing the amount of the unpaid duty together with the penalty shall—

(i)       in the case of impressed stamps, be impressed on the instrument; and

(ii)      in the case of adhesive stamps, be affixed to the instrument,

in the presence of a commissioner, who shall thereupon in the case of adhesive stamps cancel the stamps by writing his initials and the date thereon, and in addition in the case of those stamps whether impressed or adhesive which do not clearly indicate that they represent a penalty write the word “penalty” thereon, and any such cancellation shall be effective for all purposes.

(2)      In the case of such instruments hereinafter mentioned as are chargeable with ad valorem duty, the following provisions shall have effect—

(a)      the instrument, unless it is written upon duly stamped material, shall be duly stamped with the proper ad valorem duty before the expiration of thirty days after it is first executed, or after it has been first received in Nigeria in case it is first executed at any place outside Nigeria;

(b)      if any such instrument executed after the coming into operation of this Law has not been or is not duly stamped in conformity with the foregoing provisions of this subsection, the person in that behalf hereinafter specified shall incur a fine of twenty naira, and in addition to the penalty prescribed under subsection (1) on stamping the instrument, there shall be paid a further penalty equivalent to the unpaid duty or the omission to stamp, or the insufficiency of stamp, be afforded to the satisfaction of the commissioner, or of the court, arbitrator or referee before whom it is produced;

(c) t    he instruments and persons to which the provisions of this subsection are to apply are as follows—

 

Title of instrument as described in the Schedule Person liable to penalty
Bond, covenant, or instrument of any kind whatsoever. The obligee, covenantee or other person taking the security.
Conveyance on sale. The vendee or transferee.
Conveyances or transfers operating as voluntary dispositions inter vivos. The grantor or transferor.
Lease. The lessee.
Mortgage bond, debenture, covenant, and warrant of attorney to confess and enter up judgment. The mortgagee or obligee, in the case of a transfer or re-conveyance, the transferee, assignee or disponee or the person redeeming the security.
Settlement. The settlor.

 

(3)     Save where other express provision is made by this Law in relation to any particular instrument, any unstamped or insufficiently stamped instrument which has been first executed at any place outside Nigeria, may be stamped, at any time within thirty days after it has been first received in Nigeria, on payment of the unpaid duty only.

(4)      Where an instrument is void unless it has been approved or sanctioned by the Governor or some public officer, the periods mentioned in this section shall be deemed to run from the date of such approval or sanction.

(5)      Where an instrument has been submitted to a commissioner for his opinion before the period within which it may be stamped has expired, the instrument may be stamped in accordance with the assessment of the commissioner within twenty-one days after notice of the assessment.

(6)      The date of the approval or sanction referred to in subsection (4) and of the notice of assessment in subsection (5) shall be the date upon which such approval, sanction or notice of assessment has been sent by registered or ordinary letter post to the address of the person who requested the approval or sanction referred to in subsection (4) or the assessment in subsection (5), as the case may be, or after notice of such approval, sanction or assessment has been handed personally to such person or his representative.

(7) (a) Where the State Commissioner is of the opinion that the period of forty days specified in subsection (1) or of thirty days specified in subsections (2) and (3) is—

(i)       being used in any manner for the purpose of evading the payment of stamp duties; or

(ii)      too long or too short in view of the fact that a commissioner is either easy or difficult to access for the purpose of assessing the duty payable upon any instrument or of having stamps impressed upon an instrument liable to duty, the State Commissioner may by order declare that for the period of forty days specified in subsection (1) and for the periods of thirty days specified in subsections (2) and (3) or either of them there shall be substituted such lesser or longer period of time as may be specified in the said order and thereafter such lesser period shall be substituted for the period of forty days specified in subsection (1) and such lesser or longer period for the periods of thirty days specified in subsections (2) and (3) or either of them, as the case may be, in the application of this section to instruments first executed or received in those towns, areas or places to which the order relates.

(b)      An order under this subsection may specify different periods of time in respect of different places and may be restricted or increased in the case of a period of time referred to in subsection (2) to instruments first executed in Nigeria.

ENTRIES UPON ROLLS, BOOKS AND DOCUMENTS

  1. Certain rolls and books to be open to inspection

(1)      Every person having in his custody any rolls, books, records, papers, documents, or proceedings, the inspection whereof may tend to secure any duty, or to prove or lead to the discovery of any fraud or omission in relation to any duty, shall at all reasonable times permit any person thereto authorised by the commissioner to inspect the rolls, books, records, papers, documents, and proceedings, and to take such notes and extracts as he may deem necessary, without fee or reward, and in case of refusal, shall for every offence incur a fine of twenty naira.

(2)      Where such rolls, books, records, papers, documents or proceedings are in the custody of any bank such inspection shall first be made by a commissioner unaccompanied by any other person unless the commissioner decides that it is necessary for him to have assistance in determining whether any fraud or omission in relation to any duty has taken place.

  1. Penalty for enrolling instrument not stamped

If any person whose office it is to enroll, register or enter in or upon any rolls, books, or records any instrument chargeable with duty, enrolls, registers or enters any such instrument not being duly stamped, he shall incur a fine of twenty naira.

DESTRUCTION OF UNCLAIMED INSTRUMENTS

  1. Destruction of unclaimed instruments

Where any instrument has been left with or at the office of any commissioner for any purpose connected with any of the provisions of this Law and the instrument is not claimed by the person to whom the same belongs within six months of its being so left, a notice may be inserted in an issue of the State Gazette stating that the instrument will be destroyed if not claimed by such person within two months of the publication of the notice and if the instrument is not so claimed it may be destroyed.

PART 2

Regulations Applicable to Particular Instruments

ADMISSION

  1. Mode of denoting duty

(1)      The duty payable upon an admission is to be denoted on the instrument of admission delivered to the person admitted, if there be any such instrument, or if not, on the register, entry, or memorandum of the admission in the rolls, books, or records of the High Court and in cases in which no instrument of admission is delivered, and no register, entry, or memorandum is made, on the receipt or warrant for admission.

(2)      If any person whose office it is to prepare or deliver out any instrument of admission chargeable with duty, or to register, enter, or make any memorandum of any admission in respect of which no instrument of admission is delivered to the person admitted, neglects or refuses, within one month after the admission, to prepare a duly stamped instrument of admission, or to make a duly stamped register, entry, or memorandum of the admission, as the case may require, he shall incur a fine of twenty naira.

AGREEMENTS

  1. Adhesive stamps may be used for agreements

The duty of ten kobo on an agreement may be denoted by an adhesive stamp which must be cancelled by the person by whom the agreement is first signed before he delivers it out of his hands.

  1. Certain mortgages of stock to be chargeable as agreements

(1)      Every instrument under hand only (not being a promissory note or bill of exchange) given upon the occasion of the deposit of any share warrant or stock certificate to bearer, or foreign or colonial share certificate or any security for money transferable by delivery, by way of security for any loan, shall be deemed to be an agreement, and shall be charged with duty accordingly.

(2)      Every instrument under hand only (not being a promissory note or bill of exchange) making redeemable or qualifying a duly stamped transfer, intended as a security, of any registered stock or marketable security shall be deemed to be an agreement and shall be charged with duty accordingly.

(3)      A release or discharge of any such instrument shall not be chargeable with any ad valorem duty.

  1. Hire purchase agreement to be stamped

Any agreement for or relating to the supply of goods on hire, whereby the goods in consideration of periodical payments will or may become the property of the person to whom they are supplied shall be charged with duty as an agreement and if under seal as a deed, as the case requires, and the exemption numbered (3) under the heading “Agreement or any Memorandum of an Agreement” in the Schedule shall not apply in the case of any such instrument.

APPRAISEMENTS

  1. Definition of “appraiser”

Every person who receives from any appraiser, or pays for the making of any such appraisement or valuation, not so written out and stamped as aforesaid shall incur a fine of forty naira.

  1. Appraisements to be written out

(1)      Every appraiser, by whom an appraisement or valuation chargeable with duty is made, shall, within fourteen days after the making thereof, write out the same in words and figures showing the full amount thereof, and shall duly stamp the same and if he neglects or omits so to do, or in any other manner first discloses the amount of the appraisement or valuation, he shall incur a fine of one hundred naira.

(2)      Every person who receives from any appraiser, or pays for the making of any such appraisement or valuation, not so written out and stamped as aforesaid shall incur a fine of forty naira.

INSTRUMENTS OF APPRENTICESHIP

  1. Meaning of instrument of apprenticeship

Every writing relating to the service or tuition of any apprentice, clerk, or servant placed with any master to learn any profession, trade, or employment is to be deemed an instrument of apprenticeship.

BILLS OF LADING

  1. Bills of lading

(1)      A bill of lading is not to be stamped after the execution thereof.

(2)      Every person who makes or executes any bill of lading not duly stamped shall incur a fine of one hundred naira.

BILLS OF SALE

  1. Bills of sale

A bill of sale is not to be registered under any law for the time being in force relating to the registration of bills of sale unless the original, duly stamped, is produced to the proper officer.

CHARTER-PARTIES

  1. Provisions as to duty on charter-party

(1)      For the purposes of this Law the expression “charter-party” includes any agreement or contract for the charter of any ship or vessel or any memorandum, letter, or other writing between the captain, master, or owner of any ship or vessel, and any other person for or relating to the freight or conveyance of any money, goods, or effects on board of a ship or vessel.

(2)      The duty upon a charter-party may be denoted by an adhesive stamp, which is to be cancelled by the person by whom the instrument is last executed, or by whose execution it is completed as a binding contract.

  1. Charter-parties executed abroad

Where a charter-party is first executed out of Nigeria without being duly stamped, any party thereto may, within ten days after it has been first received in Nigeria, and before it has been executed by any person in Nigeria, affix thereto an adhesive stamp denoting the duty chargeable thereon, and at the same time cancel such adhesive stamp, and the instrument when so stamped shall be deemed duly stamped.

  1. Terms upon which charter-parties may be stamped after execution

A charter-party may be stamped with an impressed stamp after execution upon the following terms—

(a)      within seven days after the first execution thereof, on payment of the duty and a penalty of sixty-eight kobo;

(b)      after seven days within one month after the first execution thereof, on payment of the duty and a penalty of thirty naira,

and shall not in any case be stamped with an impressed stamp.

CONTRACT NOTES

  1. Provisions as to contract notes

(1)      For the purpose of this Law the expression “contract note” means the note sent by a broker or agent to his principal, or by any person who by way of business deals, or holds himself out as dealing, as a principal in any stock or marketable securities, advising the principal, or the vendor or purchaser, as the case may be, of the sale or purchase of any stock or marketable security, but does not include a note sent by a broker or agent to his principal where the principal is himself acting as broker or agent for a principal.

(2)      Where a contract note is a continuation or carrying over note made for the purpose of continuing or carrying over any transaction for the sale or purchase of stock or marketable security, the contract note, although it is made in respect of both a sale and purchase, shall be charged with duty under this section as if it related to one of those transactions only, and, if different rates of duty are chargeable in respect of those transactions, to that one of those transactions which would render the contract note chargeable at the highest rate.

(3)      Where a contract note advises the sale or purchase of more than one description of stock or marketable security, the note shall be deemed to be as many contract notes as there are descriptions of stocks or securities sold or purchased.

  1. Obligation to execute contract note

(1)      Any person who effects any sale or purchase of any stock or marketable security as a broker or agent, and any person who by way of business deals, or holds himself out as dealing, as a principal in any stock or marketable security, and buys or sells any such stock or marketable security, shall forthwith make and execute a contract note, and transmit the note to his principal, or to the vendor or purchaser of the stock or marketable security, as the case may be, and in default of so doing shall incur a fine of forty naira.

(2)      If any person makes or executes any contract note chargeable with duty and not being duly stamped, he shall incur a fine of forty naira.

(3)      No broker, agent, or other person shall have any legal claim to any charge for brokerage, commission or agency, with reference to the sale or purchase of any stock or marketable security if he fails to comply with the provisions of this section.

(4)      All stamp duties on a contract note may be denoted by an adhesive stamp which is to be cancelled by the person by whom the note is executed.

(5)      Any duty on a contract note may be added to the charge for brokerage or agency, and shall be recoverable as part of such charge.

  1. Extension of provisions as to contract notes to sale or purchase of options

(1)      The provisions of this Law as to contract notes shall apply to any contract under which an option is given or taken to purchase or sell any stock or marketable security at a future time at a certain price, as it applies to the sale or purchase of any stock or marketable security, but the duty on such a contract shall be one-half only of that chargeable on a contract note:

Provided that, if under the contract a double option is given or taken, the contract shall be deemed to be a separate contract in respect of each option.

(2)      Any contract note made or executed in pursuance and in consequence of the exercise of an option given or taken under a contract duly stamped in accordance with the provisions of this section shall be charged with one half only of the duty which would otherwise have been chargeable thereon under this Law:

Provided that it bears on its face a certificate by the broker, agent or other person mentioned in section 38 to the effect that it is made or executed in the exercise of an option for which a duly stamped contract has been rendered on the date mentioned in the certificate.

CONVEYANCES ON SALE

  1. Meaning of “conveyance on sale”

For the purposes of this Law the expression “conveyance on sale” includes—

(a)      every instrument, and every decree or order of any court whereby any property, or any estate or interest in any property, upon the sale thereof is transferred to or vested in a purchaser, or any other person on his behalf or by his direction;

(b)      a decree or order for, or having the effect of an order for foreclosure:

Provided that—

(i)       the ad valorem duty upon any such decree or order shall not exceed the duty on a sum equal to the value of the property for which the decree or order relates, and where the decree or order states that value that statement shall be conclusive for the purpose of determining the amount of the duty; and

(ii)      where ad valorem duty is paid upon such decree or order, any conveyance following upon such decree or order shall be exempt from the ad valorem duty.

  1. How ad valorem duty is to be calculated in respect of stock and securities

(1)      Where the consideration, or any part of the consideration, for a conveyance on sale consists of any stock or marketable security, the conveyance is to be charged with ad valorem duty in respect of the value of the stock or security.

(2)      Where the consideration, or any part of the consideration, for a conveyance on sale consists of any security not being a marketable security, the conveyance is to be charged with ad valorem duty in respect of the amount due on the day of the date thereof for principal and interest upon the security.

  1. How consideration consisting of periodical payments to be charged

(1)      Where the consideration, or any part of the consideration, for the conveyance on sale consists of money payable periodically for a definite period not exceeding twenty years, so that the total amount to be paid can be previously ascertained, the conveyance is to be charged in respect of that consideration with ad valorem duty on such total amount.

(2)      Where the consideration, or any part of the consideration, for a conveyance on sale consists of money payable periodically for a definite period exceeding twenty years or in perpetuity or for an indefinite period not terminable with life, the conveyance is to be charge in respect of that consideration with ad valorem duty on the total amount which will or may, according to the terms of sale, be payable during the period of twenty years next after the day of the date of the instrument.

(3)      Where the consideration, or any part of the consideration, for the conveyance on sale consists of money payable periodically during any life or lives, the conveyance is to be charged in respect of that consideration with ad valorem duty on the amount which will or may, according to the terms of the sale, be payable during the period of twelve years next after the day of the date of the instrument.

(4)      No conveyance on sale chargeable with ad valorem duty in respect of any periodical payments, and containing also provision for securing the payments, is to be charge with any duty in respect of such provision, and no separate instrument made in that case for securing the payments is to be charged with any higher duty that one naira.

  1. Conveyance on sale with further covenant

A conveyance on sale made for any consideration in respect whereof it is chargeable with ad valorem duty, and in further consideration of a covenant by the purchaser to make, or of his having previously made, any substantial improvement of or addition to the property conveyed to him, or of any covenant relating to the subject-matter of the conveyance, is not chargeable, and shall be deemed not to have been chargeable, with any duty in respect of such further consideration.

  1. How conveyance in consideration of a debt is to be charged

Where any property is conveyed to any person in consideration, wholly or in part, of any debt due to him, or subject either certainly or contingently to the payment or transfer of any money or stock, whether being or constituting a charge or encumbrance upon the property or not, the debt, money or stock is to be deemed the whole or part, as the case may be, of the consideration in respect whereof the conveyance is chargeable with ad valorem duty.

  1. Direction as to duty in certain cases

(1)      Where property contracted to be sold for one consideration for the whole is conveyed to the purchaser in separate parts or parcels by different instruments, the consideration is to be apportioned in such manner as the parties think fit, so that a distinct consideration for each separate part or parcel is set forth in the conveyance relating thereto, and such conveyance is to be charged with ad valorem duty in respect of such distinct consideration.

(2)      Where property contracted to be purchased for one consideration for the whole by two or more persons jointly, or by any person for himself and others, or wholly for others, is conveyed in separate parts or parcels by separate instruments to the person by or for whom the same was purchased for distinct parts of the consideration, the conveyance of each separate part or parcel is to be charged with ad valorem duty in respect of the distinct part of the consideration therein specified.

(3)      Where there are several instruments of conveyance for completing the purchaser’s title to property sold, the principal instrument of conveyance only is to be charged with ad valorem duty, and the other instruments are to be respectively charged with such other duty as they may be liable to, but the last mentioned duty shall not exceed the ad valorem duty payable in respect of the principal instrument.

(4)      Where a person having contracted for the purchase of any property, but not having obtained a conveyance thereof, contracts to sell the same to any other person, and the property is in consequence conveyed immediately to the sub-purchaser, the conveyance is to be charged with ad valorem duty in respect of the consideration moving from the sub-purchaser.

(5)      Where a person having contracted for the purchase of any property, but not having obtained a conveyance contracts to sell the whole, or any part or parts thereof, to any other person or persons, and the property is in consequence conveyed by the original seller to different persons in parts or parcels, the conveyance of each part or parcel is to be charged with ad valorem duty in respect only of the consideration moving from the sub-purchaser thereof, without regard to the amount or value of the original consideration.

(6)      Where a sub-purchaser takes an actual conveyance of the interest of the person immediately selling to him, which is chargeable with ad valorem duty in respect of the consideration moving from him, and is duly stamped accordingly, any conveyance to be afterwards made to him of the same property by the original seller shall be chargeable only with such other duty as it may be liable to, but the last mentioned duty shall not exceed the ad valorem duty.

  1. Certain contracts to be chargeable as conveyances on sale

(1)      Any contract or agreement under seal, or under hand only, for the sale of any equitable restate or interest in any property whatsoever, or for the sale of any estate or interest in any property except property locally situate out of Nigeria, or goods, wares, or merchandise, or stock or marketable securities, or any ship or vessel or part interest, share, or property of or in any ship or vessel, shall be charged with the same ad valorem duty, to be paid by the purchaser, as if it were an actual conveyance on sale of the estate, interest or property contracted or agreed to be sold.

(2)      Where the purchaser has paid the said ad valorem duty and before having obtained a conveyance or transfer of the property, enters into a contract or agreement for the sale of the same, the contract or agreement shall be charged, if the consideration for that sale is in excess of the consideration for the original sale, with the ad valorem duty payable in respect of such excess consideration, and in any other case with the fixed duty of two naira or of ten kobo, as the case may require.

(3)      Where the duty has been paid in conformity with the foregoing provisions, the conveyance or transfer made to the purchaser or sub-purchaser, or any other person on his behalf or by his direction, shall not be chargeable with any duty, and a commissioner upon application, either shall denote the payment of the ad valorem duty upon the conveyance or transfer, or shall transfer the ad valorem duty thereto upon production of the contract or agreement, or contracts or agreements, duly stamped.

(4)      Where any such contract or agreement is stamped with the fixed duty of two naira or one naira, as the case may require, the contract or agreement shall be regarded as duly stamped for the mere purpose of proceeding to enforce specific performance or recover damages for the breach thereof.

(5)      Where any such contract or agreement is stamped with the said fixed duty, and a conveyance or transfer made in conformity with the contract or agreement is presented to a commissioner for stamping with the ad valorem duty chargeable thereon within a period of six  months after the first creation of the contract or agreement, or within any such longer time as the commissioner may think reasonable in the circumstances of the case, the conveyance or transfer shall be stamped accordingly, and the same, and the said contract or agreement shall be deemed to be duly stamped:

Provided that nothing in this subsection shall alter or affect the provisions as to stamping an instrument after the execution thereof.

(6)      The ad valorem duty paid upon any such contract or agreement shall be returned by the Accountant-General on a certificate by the commissioner in case the contract or agreement be afterwards rescinded or annulled, or for any other reason be not substantially performed or carried into effect, so as to operate as or be followed by a conveyance or transfer.

(7)      Any certificate required from the commissioner under this section shall be free of charge.

  1. Where interest in land transferred by sale and possession without a conveyance

Where any instrument which purports to convey any estate or interest in land, hereditament or heritage does not operate in law to transfer such estate or interest, then, if the instrument constitutes an agreement or contract to sell such estate or interest, it shall be deemed to be a contract or agreement within the meaning of the preceding section:

Provided that where the purchaser is entitled to such an estate or interest by virtue of an instrument creating or transferring the same and such estate interest or instrument is registered under any Law, any contract or agreement for the sale of such estate or interest shall not be chargeable with duty under the preceding section.

  1. As to sale of an annuity or right not before in existence

Where upon the sale of an annuity or other right not before in existence such annuity or other right is not created by actual grant or conveyance, but is only secured by bond, warrant of attorney, covenant, contract, or otherwise, the bond or other instrument, or some one of such instruments, if there be more than one, is to be charged with the same duty as an actual grant or conveyance, and is for the purposes of this Law to be deemed an instrument of conveyance on sale.

  1. Principal instrument, how to be ascertained

The parties may determine for themselves which of several instruments is to be deemed the principal instrument, and may pay the ad valorem duty thereon accordingly.

  1. Duty payable in certain cases under Law on vesting of property

Where by virtue of a Law either—

(a)      any property is vested by way of sale in any person; or

(b)      any person is authorised to purchase property, such person shall within three months of the passing of the Law or the date of vesting, whichever

is later, or after the completion of the purchase, as the case may be, produce to a commissioner a copy of the Law or some instrument relating to the vesting in the first case, and an instrument of the conveyance of the property in the other case, duly stamped with the ad valorem duty payable upon a conveyance on sale of the property; and in default of such production the duty with interest thereon at the rate of five naira per centum per annum from the passing of the Law, date of vesting or completion of the purchase, as the case may be, shall be a debt to the Government of the Cross River State from such person.

  1. Duty on gifts inter vivos

(1)      Any conveyance or transfer operating as a voluntary disposition inter vivos shall be chargeable with the like duty as if it were a conveyance or transfer on sale, with the substitution in each case of the value of the property conveyed or transferred for the amount or value of the consideration for the sale:

Provided that this section shall not apply to a conveyance or transfer operating as a voluntary disposition of property to a body of persons incorporated by a special Law, if that body is by its Law precluded from dividing any profit among its members and the property conveyed is to be held for the purposes of an open space or for the purposes of its preservation for the benefit of Cross River State.

(2)      A commissioner may be required to express his opinion under section 13 on any conveyance or transfer operating as a voluntary disposition inter vivos, and no such conveyance or transfer shall be deemed to be duly stamped unless a commissioner has expressed his opinion thereon in accordance with that section.

(3)      Where any instrument is chargeable with duty both as a conveyance or transfer under this section and as a settlement under the heading “settlement” in the Schedule, the instrument shall be charged with duty as a conveyance or transfer under this section, and not as a settlement.

(4)      Any conveyance or transfer (not being a disposition made in favour of a purchase or incumbrancer or other person in good faith and for valuable consideration) shall, for the purposes of this section, be deemed to be a conveyance or transfer operating as a voluntary disposition inter vivos, and (except where marriage is the consideration) the consideration for any conveyance or transfer shall not for this purpose be deemed to be valuable consideration where the commissioner is of opinion that by reason for the inadequacy of the sum paid as consideration or other circumstances the conveyance or transfer a substantial benefit on the person to whom the property is conveyed or transferred.

(5)      A conveyance or transfer made for nominal consideration for the purpose of securing the repayment of an advance or loan or made for effectuating the appointment of a new trustee or the retirement of a trustee, whether the trust is expressed or implied, or under which no beneficial interest beneficiary by a trustee or other person in a fiduciary capacity under any trust, whether expressed or implied, or a disentailing assurance not limiting any new estate other than an estate in fee simple in the person disentailing the property, shall not be charged with duty under this section, and this subsection shall have effect notwithstanding that the circumstances exempting the conveyance or transfer from charge under this section are not set forth in the conveyance or transfer.

  1. Licence with a grant to enter upon land

A licence to a person to enter upon land coupled with a grant whether such grant be the removal of material from land or other transfer of property shall (where a premium is paid by the licensee) be subject to ad valorem duty as a conveyance on sale for the premium so paid or, where rent is paid by the licensee be subject to duty as a lease at the rent so payable.

CONVEYANCES ON ANY OCCASION EXCEPT SALE OR MORTGAGE

  1. What is to be deemed a conveyance on any occasion not being a sale or mortgage

Every instrument, and every decree or order of any court, whereby any property on any occasion, except a sale, or mortgage, is transferred to or vested in any person, is to be charged with duty as a conveyance or transfer of property:

Provided that a conveyance or transfer made for effectuating the appointment of a new trustee or for effectuating the retirement of a trustee although no new trustee is appointed is not to be charged with any higher duty than one naira.

DUPLICATES AND COUNTERPARTS

  1. Provision as to duplicates and counterparts

The duplicate or counterpart of an instrument chargeable with duty (except the counterpart of an instrument chargeable as a lease, such counterpart not being executed by or on behalf of any lessor or grantor) is not to be deemed duly stamped, unless it is stamped as an original instrument, or unless it is made to appear to a commissioner (who shall upon payment of a fee of twenty-five kobo in adhesive stamps, certify on such duplicate or counterpart accordingly) that the full and proper duty has been paid upon the original instrument of which it is the duplicate or counterpart.

EXCHANGE AND PARTITION OR DIVISION

  1. As to exchange, partition or division

Where upon the exchange of any real property for any other real property, or upon the partition or division of any real property, any consideration exceeding in amount or value two hundred naira is paid or given, or agreed to be paid or given, for equality, the principal or only instrument whereby the exchange or partition is effected is to be charged with the same ad valorem duty as a conveyance on sale for the consideration and with that duty only; and where in any such case there are several instruments for completing the title of either party, the principal instrument is to be ascertained, and the other instruments are to be charged with duty in the manner hereinbefore provided in the case of several instruments of conveyance.

LEASES

  1. Agreements to be charged as lease

(1)      An agreement for a lease, or with respect to the letting of any lands or tenements, is to be charged with the same duty as if it were an actual lease made for the term and consideration mentioned in the agreement.

(2)      A lease made subsequently to, and in conformity with, such an agreement duly stamped, is to be charged with the duty of ten kobo only.

  1. Leases, how to be charged in respect of produce

(1)      Where the consideration, or any part of the consideration, for which a lease is granted or agreed to be granted, consists of any produce or other goods, the value of the produce or goods is to be deemed a consideration in respect of which the lease or agreement is chargeable with ad valorem duty as for a conveyance on sale.

(2)      Where it is stipulated that the value of the produce or goods is to amount at least to, or is not to exceed, a given sum, or where the lessee is specially charged with, or has the option of paying after any permanent rate of conversion, the value of the produce or goods is, for the purpose or assessing the ad valorem duty, to be estimated at the given sum or according to the permanent rate.

(3)      A lease or agreement for a lease made either wholly or partially for any such consideration, if it contains a statement of the value thereof, and is stamped in accordance with the statement, is so far as regards the subject-matter of the statement, to be deemed duly stamped, unless or until it is otherwise shown that the statement is incorrect, and that the lease or agreement is in fact not duly stamped.

  1. Directions as to duty in certain cases

(1)      A lease or agreement for a lease or with respect to any letting, is not to be charged with any duty in respect of any penal rent, or increased rent in the nature of a penal rent, thereby reserved or agreed to be reserved or made payable, or by reason of being made in consideration of the surrender or abandonment of any existing lease, or agreement, of or relating to the same subject-matter.

(2)      A lease made for any consideration in respect whereof it is chargeable with ad valorem duty, and in further consideration either of a covenant by the lessee to make, or of his having previously made, any substantial improvement of or addition to the property demised to him, or of any covenant relating to the matter of the lease is not to be charged with any duty in respect of such further consideration:

Provided that if the further consideration in the lease consists of a covenant which if it were contained in a separate deed would be charge with ad valorem duty the lease shall in any such case be charged with duty in respect of any such further consideration under section 5.

(3)      An instrument whereby the rent reserved by any other instrument chargeable with duty and duly stamped as a lease is increased is not to be charged with duty otherwise than as a lease in consideration of the additional rent thereby made payable.

  1. Duty on certain leases may be denoted by adhesive stamp

The duty upon an instrument chargeable with duty as a lease for any definite terms less than a year and the duty upon the duplicate or counterpart of any such instrument may be denoted by an adhesive stamp which is to be cancelled by the person by whom the instrument is first executed.

LETTERS OR POWERS OF ATTORNEY AND VOTING PAPERS

  1. Provisions as to proxies and voting papers

(1)      Every letter or power of attorney for the purpose of appointing a proxy to vote at a meeting, and every voting paper, hereby respectively charged with the duty of two kobo, is to specify the day upon which the meeting at which it is intended to be used is to be held, and is to be available only at the meeting so specified, and any adjournment thereof.

(2)      Every person who makes or executes, or votes, or attempts to vote, under or by means of any such letter or power of attorney or voting paper, not being duly stamped, shall incur a fine of one hundred naira, and every vote given or tendered under the authority or by means of the letter or power of attorney or voting paper, shall be void.

  1. Powers by more than one person or to more than one person to count as one power

No instrument chargeable with duty under the heading “letter or power of attorney, and commission, factory, mandate” or “other instrument in the nature thereof” in the Schedule shall be charged with duty more than once by reason only that more persons than one are named in the instrument as donors or donees (whether jointly, severally or otherwise) of the powers thereby conferred or that those powers relate to more than one matter.

MARKETABLE SECURITIES

  1. Meaning of “marketable securities”

Marketable securities whether or not transfereable by delivery for the purposes of the charge of duty thereon include—

(a)      a marketable security made or issued by or on behalf of any company or body or persons corporate or unincorporate formed or established in Nigeria;

(b)      a marketable security by or on behalf of any foreign State or Government, or foreign or colonical municipal body, corporation or company (hereinafter called a “foreign security”) formed or established outside Nigeria—

(i)       which is made or issued in Cross River State;

(ii)      which, though originally issued out of Nigeria is offered for subscription, and is given or delivered to a subscriber in Cross River State;

(iii)     which is assigned, transferred or in any manner negotiated in Cross River State;

(c)      a marketable security by or on behalf of any Commonwealth Government which if the borrower were a foreign Government would be a foreign security (hereafter called a Commonwealth Government Security).

  1. Meaning of marketable security transferable on delivery and instrument to bearer

An instrument used for the purpose of assigning, transferring or in any manner negotiating the right to any marketable security, share or stock, shall, if the delivery thereof is by usage treated as sufficient for the purpose of a sale on the market, whether that delivery constitutes a legal assignment, transfer or negotiation, or not, be deemed a marketable security, transferable on delivery, or an instrument to bearer, as the case may be, and the delivery thereof an assignment, a transfer or negotiation.

  1. Marketable security transferable on delivery to be stamped on execution

(1)      A marketable security transferable on delivery (not being a foreign security or a Commonwealth Government Security made or issued out of Nigeria) shall be stamped on or before the issue or first execution thereof, and a foreign security or a Commonwealth Government Security made or issued out of Nigeria shall be stamped before being dealt with in the manner specified in section 61 (b) (ii) and (iii).

(2)      Any person who contravenes the provisions of this section shall be guilty of an offence and shall incur a fine of forty naira.

  1. Duty reduced in case of short-term marketable securities

(1)      The stamp duty charged on marketable securities transferable by delivery shall, when the amount secured by the security is to be paid off within a term not exceeding three years after the date on which the duty is payable and the date by which the amount is to be paid off is conspicuously stated on the face of the security, be reduced to seven and a half kobo for every twenty naira or fractional part of twenty naira of the money secured, if that money is to be paid off within a term not exceeding one year from the date on which the duty is payable, and fifteen kobo for every twenty naira or fractional part of twenty naira of the money secured, if that money is to be paid off within a term exceeding one year but not exceeding three years from the date on which the duty is payable.

(2)      If the marketable security upon which the stamp duty has been charged in accordance with this section is assigned, transferred or in any manner negotiated in Cross River State after the date stated on the face of the security as the date by which the amount secured is to be paid off, stamp duty thereon shall be charged at the full rate of duty, an allowance being made for the duty already paid, and if any person in Cross River State after the said date assigns, transfers or in any manner negotiates or is concerned as booker or agent in assigning, transferring or in any manner negotiating any such security, and the security is not stamped in accordance with this provision, that person shall incur a fine of forty naira.

(3)      Paragraph (2) under the heading “marketable security” in the Schedule, shall not apply in the case of marketable securities given in substitution for marketable securities which have been stamped only with the reduced rate under this section.

MORTGAGES

  1. Meaning of “mortgage”; “equitable mortgage”

(1)      For the purposes of this Law the expression “mortgage” means a security by way of mortgage for the payment of any definite and certain sum of money advanced or lent at the time, or previously due and owing, or forborne to be paid, being payable, or for the repayment of money to be thereafter lent, advanced or paid, or which may become due upon an account current, together with any sum already advanced or due, or without, as the case may be, and includes—

(a)      conditional surrender by way of mortgage, further charge or disposition; and

(b)      any conveyance of any lands, estate or property whatsoever in trust to be sold or otherwise converted into money, intended only as a security and redeemable before the sale or other disposal thereof, either by express stipulation or otherwise, except where the conveyance is made for the benefit of creditors generally, or for the benefit of creditors specified who accept the provisions made for payment of their debts in full satisfaction thereof, or who exceed five in number; and

(c)      any defeasance, letter of reversion, declaration or other deed or writing for defeating or making redeemable or explaining or qualifying any conveyance, transfer or disposition of any lands, estate or property whatsoever, apparently absolute, but intended only as a security; and

(d)      any agreement (other than an agreement chargeable with duty as an equitable mortgage), contract, or bond accompanied with a deposit of title deeds for making a mortgage, or any other security or conveyance as aforesaid of any lands, estate, or property comprised in title deeds, or for pledging or charging the same as a security; and

(e)      any deed operating as a mortgage of any stock or marketable security.

(2)      For the purposes of this Law the expression “equitable mortgage” means an agreement or memorandum under hand only—

(a)      relating to the deposit of any title deed or instrument constituting or being evidence of the title to any property whatever (other than stock or marketable security); and

(b)      creating a charge on lands, tenements or hereditaments whether or not such charge is expressed to be created by “pledge” or otherwise.

(3)      Where a mortgage gives a power of sale to the party taking the security or power to enter into receipt of rents and profits or declaring that he is to have the power conferred by law upon mortgagees, such mortgage shall be chargeable with duty as a legal mortgage notwithstanding that it would have been an equitable mortgage had it not contained the power of sale or other provisions specified in this subsection.

  1. Direction as to duty in certain cases

(1)      A security for the transfer or retransfer of any stock is to be charged with the same duty as a similar security for a sum of money equal in amount to the value of the stock; and a transfer, assignment or disposition of any such security, and a reconveyance, release, discharge, surrender, re-surrender, warrant to vacate, or renunciation of any such security, is to be charged with the same duty as an instrument of the same description relating to a sum of money equal in amount to the value of the stock.

(2)      A security for the payment of any rent charge, annuity, or periodical payments, by way of repayment, or in satisfaction or discharge or any loan, advance, or payment intended to be so repaid, satisfied, or discharged is to be charged with the same duty as a similar security for the payment of the sum of money so lent, advanced or paid.

(3)      A transfer of a duly stamped security, and a security by way of further charge for money or stock, added to money or stock previously secured by a duly stamped instrument, is not to be charged with any duty by reason of its containing any further or additional security for the money or stock transferred or previously secured, or the interest or dividends thereof, or any new covenant, proviso, power, stipulation, or agreement in relation thereto, or any further assurance of the property comprised in the transferred or previous security.

(4)      An instrument chargeable with ad valorem duty as a mortgage is not to be charged with any further duty by reason of the equity of redemption in the mortgaged property being thereby conveyed or limited in any other manner than to a purchaser, or in trust for, or according to the direction of, a purchaser.

  1. Security for future advances, how to be charged

(1)      A security for the payment or repayment of money to be lent, advanced, or paid, or which may become due upon an account current, either with or without money previously due, is to be charged, where the total amount secured or to be ultimately recoverable is in any way limited with the same duty as a security for the amount so limited.

(2)      Where such total amount is unlimited, the security is to be available for such an amount only as the ad valorem duty impressed thereon extends to cover, but where any advance or loan is made in excess of the amount covered by that duty the security shall for the purposes of stamp duty be deemed to be a new and separate instrument, bearing date on the day on which the advance or loan is made:

Provided that no money to be advanced for the insurance of any property comprised in the security against damage by fire, or for keeping up any policy of life insurance comprised in the security, or for effecting in lieu thereof any new policy, or for the renewal of any grant or lease of any property comprised in the security upon the dropping of any life wherein the property is held, shall be reckoned as forming part of the amount in respect whereof the security is chargeable with ad valorem duty.

 

NOTARIAL ACTS

  1. Duty on notarial acts may be denoted by adhesive stamps

The duty upon a notarial act and upon the protest by a notary public of a bill of exchange or promissory note may be deemed by an adhesive stamp which is to be cancelled by the notary.

RECEIPTS

  1. Provisions as to duty upon receipts

(1)      For the purposes of this Law the expression “receipt” includes any note, memorandum, or writing whereby any money amounting to four naira or upwards, or any bill of exchange or promissory note for money amounting to four naira or upwards, is acknowledged or expressed to have been received or deposited or paid, or whereby any debt or demand, or any part of a debt or demand, of the amount of four naira or upwards, is acknowledge to have been settled, satisfied, or discharged, or which signifies or imports any such acknowledgement, and whether the same is or is not signed with the name of any person.

(2)      The duty upon a receipt may be denoted by an adhesive stamp which is to be cancelled by the person by whom the receipt is given before he delivers it out of his hands.

  1. Certain forms of receipts not dutiable

Neither the name of a banker (whether accompanied by words of receipt or not) written in the ordinary course of his business as a banker upon a bill of exchange or promissory note duly stamped nor the name of a payee written upon a draft or order, if payable to order, shall constitute a receipt chargeable with duty.

  1. Terms upon which receipts may be stamped after execution and used in evidence unstamped

(1)      A receipt given without being stamped may be stamped with an impressed stamp upon the following terms—

(a)      within twenty-eight days after it has been given, on payment of the duty and a penalty of four naira;

(b)      after twenty-eight days, but within fifty-six days, on payment of the duty and a penalty of twenty naira, and shall not in any other case be stamped with an impressed stamp.

(2)      The payment of the penalty under subsection (1) shall be certified on the face of the receipt under the hand of a commissioner.

(3) (a) Where in any legal proceedings or before any arbitrator or referee a receipt is inadmissible by reason of it not being duly stamped, the officer presiding over the court, the arbitrator or referee, may, having regard to the illiteracy and ignorance of the party tendering the receipt in evidence, admit the receipt upon payment of a penalty of four naira and the officer presiding over the court, the arbitrator or referee, as the case may be, shall note the payment of the penalty upon the face of the receipt so admitted and a receipt shall be given for the same.

(b)      A receipt so admitted in evidence shall not be deemed to be duly stamped but shall be available for the purposes of the suit in which it is tendered in evidence and for that purpose only.

(c)      Where a person has been permitted under this subsection to tender a receipt not duly stamped upon payment of the penalty of four naira such person may recover the said sum of four naira from the person whose duty it was to stamp the receipt at the time when it was first issued.

(4)      Nothing in this section contained is to relieve any person from any other penalty incurred by him in relation to such receipt.

  1. Penalty for offences in reference to receipts

If any person—

(a)      gives a receipt liable to duty and not duly stamped; or

(b)      in any case where a receipt would be liable to duty refuses to give a receipt duly stamped; or

(c)      upon a payment to the amount of four naira or upwards give a receipt for a sum not amounting to four naira, or separates or divides the amount paid with the intent to evade the duty, he shall incur a fine of twenty naira.

SETTLEMENT

  1. As to settlement of policy or security

Where any money which may become due or payable upon any policy of life insurance, or upon any security not being a marketable security, is settled or agreed to be settled, the instrument whereby the settlement is made or agreed to be made is to be charged with ad valorem duty in respect of that money:

Provided that—

(a)      where, in the case of a policy, no provision is made for keeping up the policy, the ad valorem duty is to be charged only on the value of the policy at the date of the instrument;

(b)      if in any such case the instrument contains a statement of the said value, and is stamped in accordance with the statement, it is, so far as regards the policy, to be deemed duly stamped, unless or until it is shown that the statement is untrue, and that the instrument is in face insufficiently stamped.

  1. Settlements; when not to be charged as securities

An instrument chargeable with ad valorem duty as a settlement in respect of any money, stock, or security is not to be charged with any further duty by reason of containing provision for the payment or transfer of the money, stock, or security, or by reason of containing, where the money, stock, or security is in reversion or is not paid or transferred upon the execution of the instrument, provision for the payment by the person entitled in possession to the interest or dividends of the money, stock, or security, during the continuance of such possession, of any annuity or yearly sum not exceeding interest at the rate of four naira per centum per annum upon the amount or value of the money, stock or security.

  1. Where several instruments, one only to be charged with ad valorem duty

(1)      Where several instruments are executed for effecting the settlement of the same property, and the ad valorem duty chargeable in respect of the settlement of the property exceeds one naira, one only of the instruments is to be charged with the ad valorem duty.

(2)      Where a settlement is made in pursuance of a previous agreement upon which ad valorem settlement duty exceeding one naira, has been paid in respect of any property, the settlement is not to be charged with ad valorem duty in respect of the same property.

(3)      In each of the aforesaid cases in instruments not chargeable with ad valorem duty are to be charged with the duty of one naira.

WARRANT FOR GOODS

  1. Meaning and provisions as to warrants for goods

(1)      For the purposes of this Law the expression “warrant for goods” means any document or writing, being evidence of the title of any person therein named, or his assigns, or the holder thereof, to the property in any goods, wares or merchandise lying in any warehouse or dock, or upon any wharf, and signed or certified by or on behalf of the person having the custody of the goods, wares or merchandise.

(2)      The duty upon a warrant for goods may be denoted by an adhesive stamp, which is to be cancelled by the person by whom the instrument is made, executed or issued.

(3)      Every person who makes, executes or issues, or receives, or takes by way of security or indemnity, any warrant for goods not being duly stamped, shall incur a fine of forty naira.

PART 3

Supplemental

  1. Innocent person suffering loss may recover against guilty person

Where any person by the production of an unstamped or insufficiently stamped instrument or otherwise, renders himself subject to a fine, penalty or forfeiture and is made thereby to suffer any fine, penalty or forfeiture but is not the person whose duty it was by law originally to provide for the stamping of the document, such first-mentioned person shall upon the proof to the satisfaction of a court that he was not the person originally responsible for having the document stamped and that he has thereby suffered a fine, penalty or forfeiture, be entitled to obtain judgment for the amount to which he has been penalised, together with costs, against the person whose duty it originally was to have the document stamped.

  1. Power to make regulations for compounding duty

Where the collection of duty or the stamping of instruments according to the provisions of this Law is impracticable or inexpedient, or where such collection or stamping causes undue inconvenience to trade or business or where the exercise of the power conferred by this section is in the interest of Cross River State, the State Commissioner may make regulations—

(a)      for compounding any duty; or

(b)      for delivery of accounts by, and collecting duty from, the persons making or issuing the instruments upon which the duty is charged.

  1. Conditions and agreements as to duty avoid

Every condition of sale framed with the view of precluding objection or requisition upon the ground of absence or insufficiency of stamp upon any instrument executed after the commencement of this Law, and every contract, arrangement, or undertaking for assuming the liability on account of absence or insufficiency of stamp upon any such instrument or indemnifying against such liability, absence or insufficiency, shall be void.

  1. Provision for remission of duty in certain cases

Where it is shown to the satisfaction of the State Commissioner that duty has been paid on an instrument in Cross River State in addition to stamp duty already paid elsewhere the State Commissioner may, if he considers it advisable in the interest of Cross River State to do so, authorise a refund of the duty paid in Cross River State, or such portion thereof as may to him seem fit.

  1. Duty and debts recoverable with fines and penalties

Proceedings for the recovery of any duty imposed by this Law or for the recovery of any debt due to the State under this Law may be included in any proceedings for the recovery of a fine or penalty under this Law.

  1. Duties and fines may be recovered summarily

All duties, fines, penalties and debts due to the State imposed by this Law shall be recoverable in a summary manner in the name of the Attorney-General.

  1. Fixed penalties

The amount to which any person is declared to be liable in respect of any fine or penalty and the amount due as a debt to the State under this Law shall not, save as hereinafter provided, be subject to any mitigation.

  1. Power to mitigate fines and stay proceedings

(1)      The State Commissioner may in his discretion mitigate any fine or penalty or debt due to the State under this Law or stay or compound any proceedings for recovery thereof and may also after judgment further mitigate or entirely remit any such fine, penalty or debt.

(2)      The decision of the State Commissioner to stay or compound any proceedings which have been commenced may be intimated to the court by a law officer, state counsel or some person on behalf of a law officer or state counsel.

  1. Fines and penalties recoverable within five years

All proceedings for the recovery of any duty, fine, penalty and debt due to the State imposed by this Law may be commenced or prosecuted at any time within five years after the offence committed by reason whereof such duty, fine, penalty or debt shall be incurred.

  1. Power to make regulations relating to stamp duties

In addition to the powers conferred on him by section 13 and 78 the State Commissioner may make regulations relating to—

(a)      the custody of the dies to be used under this Law;

(b)      the circumstances in which allowance shall be made for spoiled stamps;

(c)      the accounting for the revenue derived from stamp duties;

(d)      the substitution of adhesive stamps for impressed stamps, or of impressed stamps for adhesive stamps, or of revenue stamps for postage and revenue stamps;

(e)      the manner in which and the persons by whom impressed stamps shall be affixed to documents; and

(f)      the further and better carrying into effect of the objects and purposes of this Law.

  1. Schedule may be varied by resolution and order

The legislature of the State may by resolution increase, diminish or repeal the duty chargeable under any of the heads specified in the Schedule in respect of documents regarding which the Government of the State is competent to make laws and in respect of any other matter within such competence may add new duties or otherwise and to, vary or revoke the Schedule.

PART 4

Preliminary

  1. Interpretation

In this Law—

“Accountant-General” means the Accountant-General of Cross River State;

“commissioner” means a commissioner of stamp duties appointed as hereinafter provided;

“die” includes any plate, type, tool, or implement whatever used under the direction of the commissioner for expressing or denoting any duty, or rate of duty, or the fact that any duty, or rate of duty or penalty has been paid, or that an instrument is duly stamped, or is not chargeable with any duty, or for denoting any fee, and also any part of any such plate, type, tool or implement;

“duty” means any stamp duty for the time being chargeable under this or any other Law and also includes any fee chargeable hereunder;

“executed” and “execution” with reference to instruments not under seal, mean signed and signature;

“Government” includes the Government of Cross River State and any Ministry or non- Ministerial department thereof, and a Local Government, and an officer acting in his official capacity on behalf of the Government of the State or any department thereof, or of a Local Government and not on behalf of a private person;

“instrument” includes every written document;

“marketable security” includes a security of such a description as to be capable of being sold in any stock market of Nigeria or the United Kingdom;

“material” includes every sort of material upon which words or figures can be expressed;

“money” means sums expressed in Nigerian currency in any instrument and includes sums expressed in the instrument in any other currency and if necessary converted to the equivalent in Nigerian currency at the time of presentation for stamping under this Law;

“stamp” means as well a stamp impressed by means of a die as an adhesive stamp for denoting any duty or fee;

“stamped” with reference to instruments and material, applies as well to instruments and material impressed with stamps by means of a die as to instruments and material having adhesive stamps affixed thereto;

“the State” means Cross River State of Nigeria;

“write”, “written” and “writing” include every mode in which words or figures can be expressed upon material.

  1. Citation

This Law may be cited as the Stamp Duties Law.

With effect from the 1st October 1979, Part 2 of this Chapter and the Schedule thereto, being made with respect to the matter contained in item 57 of the Exclusive Legislative List, are Federal.

SCHEDULE

Affidavit, affirmation and statutory declaration

₦ k

Except where express provision is made as to the manner in which it is to be taken ….. 0.30

Exemptions

(1)      Affidavit or affirmation made for the immediate purpose of being filed, read, or used in any court in Nigeria, or before any judge or officer of any such court.

(2)      Affidavit, affirmation or declaration made upon a requisition of a commissioner under this Law, or a commissioner of any public board of revenue in Nigeria or in England or any of the officers acting under them or required by any law of Nigeria.

(3)      Affidavit, affirmation or declaration which may be required by the Bank of England to prove the death of any proprietor of any stock transferable there, or to identify the person of any such proprietor, or to remove any other impediment to the transfer of any such stock.

Agreement or contract, accompanied with a deposit

See Mortgage and sections 26 and 65.

Agreement for a lease or for any letting

See Lease and section 55.

Agreement for sale of Property

See conveyance on sale and section 45.

₦ k

Agreement or any memorandum of an agreement under hand only and not otherwise specifically charged with any duty whether the same be only evidence of a contract or obligatory upon the parties from its being a written instrument ………………………. 0.10

Exemptions

(1)      Agreement or Memorandum the matter whereof is not of the value of ­10.

(2)      Agreement or memorandum for the hire of any labourer, artificer, manufacturer or menial servant.

(3)      Agreement, letter or memorandum made for or relating to the sale of any goods, wares, or merchandise.

See sections 25, 26 and 27.

Agreement, hire purchase

₦ k

If under hand only ………………………………………………………………………………………………………. 0.10

If under seal ………………………………………………………………………………………………………………. 2.00

See section 27.

SCHEDULE—continued

Annuity, Conveyance in consideration of

See Conveyance on Sale, and section 41.

Purchase of

See Conveyance on Sale, and section 47.

Creation of, by way of security

See Mortgage, and section 66.

Instruments relating to, upon any other occasion.

See Bond, Covenant, or Instrument of any kind whatsoever

₦ k

Appointment of a new trustee, and appointment in execution of a power of any property, or of any use, share, or interest in any property, by any instrument not being a will …………………………………………………………………………………………………….. 1.00

Appointment of commissioner of the High Court for taking affidavits and Declarations under section 68 of the High Court Law and of a justice of the peace under section 10 of the Magistrates’ Courts Law ……………………………………………………………………………………………………. 6.00

Appraisement or valuation of any property, or of any interest therein, or of the annual value thereof, or of any dilapidations, or of any repairs wanted, or of the materials and labour used or to be used in any building, or of any articifier’s work whatsoever where the amount of the appraisement or valuation does not exceed ₦200, for every ₦50 or fractional part thereof …….. 0.25

Exceeds ₦200, for every ₦200 or fractional part thereof ……………………………….. 2.00

See section 52.

Exemptions

(1)      Appraisement or valuation made for, and for the information of, one party only, and not being in any manner obligatory as between parties either by agreement or operation of any law of Nigeria.

(2)      Appraisement or valuation made in pursuance of the order of a court in the exercise of its Admiralty Jurisdiction diction.

(3)      Appraisement or valuation of property of a deceased person made for the information of an executor or other person required to deliver an affidavit of the estate of such deceased person.

(4)      Appraisement or valuation of any property of a deceased person made for the purpose of ascertaining any duty payable thereon.

(5)      Appraisement or valuation made by or on behalf of a local authority and in connection with the raising of the revenues of a local authority.

₦ k

Apprenticeship, instrument of ………………………………………………………………………………………… 0.25

See section 30.

Assignment

By way of security, or of any security

See Mortgage.

Upon a sale, or otherwise

See conveyance.

SCHEDULE—continued

Attorney, Letter or Power of

See Letter of Attorney.

Warrant of

See Warrant of Attorney.

Award

₦ k

Where the amount or value of the matter in dispute does not exceed N200, for every ₦50 or fractional part of ₦50 thereof………………………………………………….. 0.25

Where the amount or value exceeds ₦200, for every ₦200 or fractional part of ₦200 thereof…………………………………………………………………………………………… 2.00

Bill of lading of or for any goods, merchandise, or effects to be exported ………………………….. 0.25

See section 31.

Exemption

The master’s copy.

Bill of sale

Absolute

See conveyance on Sale.

By way of security

See Mortgage.

See section 32.

Bonds

Bond for securing the payment or repayment of money.

See Mortgage and marketable Security.

Bond in relation to any annuity upon the original creation and sale thereof.

See Conveyance on Sale and section 47.

Bond, covenant, or instrument of any kind whatsoever.

(1)      Being the only or principal or primary security for any annuity (except upon the original creation thereof by way of sale or security, and except a superannuation annuity), or for any sum or sums of money at stated periods, not being interest for any principal sum secured by a duly stamped instrument, nor rent reserved by a lease.

For a definite and certain period, so that the total amount to be ultimately payable can be ascertained. The same ad valorem duty as a mortgage or a bond for such total amount.

 

For the time of life or any other indefinite period—

₦ k

For every ₦10, an also for any fractional part of ₦10, of the annuity or sum periodically payable……………………………………………………………………………………………. 0.50

SCHEDULE—continued

(2)      Being a collateral or auxiliary or additional or substituted security for any of the abovementioned purposes where the principal or primary instrument is duly stamped.

Where the total amount to be ultimately payable can be ascertained. The same ad valorem duty as a mortgage or a bond of the same kind for such total amount.

In any other case—

₦ k

For every ₦10, and also for any fractional part of ₦10, of the annuity or sum periodically payable……………………………………………………………………………………………. 0.10

(3)      Being a grant or contract for payment of a superannuation annuity, that is to say a deferred life annuity granted or secured to any person in consideration of annual premiums payable until he attains a specified age and so as to commence on his attaining that age.

₦ k

For every ₦10, and also for any fractional part of ₦10, of the annuity or sum periodically payable……………………………………………………………………………………………. 0.10

For every ₦10 and also for any fractional part of ₦10 of the annuity………………….. 0.10

Bond given pursuant to the direction or any Law, or of a commissioner, or of the Accountant- General, or any of their officers, for or in respect of any of the duties or revenue of for any other matter or thing relating thereof, or where the penalty of the Bond does not exceed ₦2,000…………………………………………………………………………………………… 0.50

In any other case ……………………………………………………………………………. 1.00

Exemptions

Bond given as aforesaid upon, or in relation to, the receiving or obtaining, or for entitling any person to received or obtain, any drawback of any duty or revenue, for or in respect of any goods, wares or Merchandise exported from Nigeria and bonds given in respect of the removal, transshipment, exportation or shipment as stores of any goods.

₦ k

Bond on obtaining letters of administration or on the sealing of a probate or letters of administration under the Probates (Re-Sealing) Decree, 1966…………………………. 0.50

Exemption

Bond given by any person where the estate to be administered does not exceed two hundred naira in value.

Bond of any kind whatsoever not specifically charged with any duty

Where the amount limited to be recoverable does not exceed ₦600.

The same ad valorem duty as a mortgage or a bond of the amount limited.

₦ k

In any other case ……………………………………………………………………………… 2.00

Bond, accompanied with a deposit of title deeds, for making a mortgage or other security on any estate or property therein comprised.

See Mortgage, and section 67.

Bond, declaration, or other deed or writing for making redeemable any disposition apparently absolute, but intended only as a security.

See Mortgage, and sections 26 and 65.

SCHEDULE—continued

Certificate from a commissioner

₦ k

For denoting under section 12, or that the full and proper duty has been paid upon the original of any document under section 53 ………………………………………………… 0.25

That an instrument is not chargeable with duty, or that it is duly stamped or the amount of duty with which it is chargeable in pursuance of section 13…………………………. 0.50

Exemption

Any certificates relating to any instruments the subject of general exemption (3) or (4).

See section 45.

₦ k

For denoting under section 12, or that the full and proper duty has been paid upon the original of any document under section 53 ……………………………………………….. 0.25

Charter-party, or any agreement for or relating to the freight or conveyance of any goods oreffects on board a ship ……………………………………………………………. 0.50

Contract Notes

Contract Note for or relating to the sale or purchase of any stock or marketable security—

₦ k

Where the value of the stock or marketable security is less than ₦10……………… 0.01½

Where the value of the stock or marketable security is ₦10 and does not exceed ₦200 ……….                                                                                              0.10

exceeds ₦200, for every ₦200 or part thereof…………………………………………….. 0.10

See section 35, 36 and 37.

Continuation Notes

See section 36 (2).

Option notes

See section 39 (1).

Contract Note following a duly stamped Option Note

See section 39 (2).

Where the amount limited to be recoverable does not exceed ₦600.

The same and valorem duty as a mortgage or a bond of the amount limited.

Conveyance or Transfer on sale, of any property

₦ k

For every ₦50. ad also for every fractional part of ₦50, of the amount or value of the consideration for the sale…………………………………………………………………….. 0.50

See section 39 – 51.

Conveyance or Transfer by way of security of any property or of any Security

See Mortgage and sections 2 and 62 – 64.

Conveyances or Transfers operating as voluntary dispositions inter vivos.

See section 22 and 52.

SCHEDULE—continued

Conveyance or Transfer of any kind not hereinbefore described

₦ k

Where the ad valorem duty in respect of the consideration or mortgage money does not exceed

₦2…………………………………………………………………………………………………. 2.00

See section 54.

Counterpart

See Duplicate.

Covenant

Covenant for securing the payment or repayment of money, or the transfer or re-transfer of stock.

See Mortgage.

Covenant in relation to any annuity upon the original creation and sale thereof. See Conveyance on

sale, and section 47.

Covenant in relating to any annuity (except upon the original creation and sale thereof) or to other periodical payment.

See Bond, Covenant.

Any separate deed of covenant (not being an instrument chargeable with ad valorem duty as a conveyance on sale or mortgage) made on the sale or mortgage of any property, and relating solely to the conveyance or enjoyment of, or the title to, the property sold or mortgage, or to the production of the muniments of title relating thereto, or to all or any of the matters aforesaid—

₦ k

In any other case………………………………………………………………………………. 2.00

Declaration of any use or trust of or concerning any property by any writing, not being a will,or an instrument chargeable with ad valorem duty as a settlement………………. 2.00

Declaration (Statutory)

See Affidavit.

₦ k

Deed of any kind whatsoever, not described in this Schedule…………………………. 2.00

Defeasance

Instrument of defeasance of any conveyance, transfer apparently absolute but intended only as a Security for money or stock.

See Mortgage and section 64.

In respect of Marketable Securities under hand only, see Agreement and section 26.

Demise

See Lease.

Deposit of title deeds

See Mortgage, and section 65.

Duplicate or Counterpart of any instrument chargeable with any duty where such duty does not amount to 75 kobo.

The same duty as the original instrument.

₦ k

In any other case ……………………………………………………………………………………………………. 0.50

SCHEDULE—continued

See section 53.

₦ k

Letter of Hypothecation ………………………………………………………………………………………………… 0.25

Letter of Trust ……………………………………………………………………………………………………………… 0.25

See section 59 and 60.

Licence coupled with a grant

See section 51.

₦ k

Licence under the Piers Law ………………………………………………………………………………………….. 0.50

Marketable Security

(1)      Marketable Security being a security not transferable by delivery—

For or in respect of the money thereby secured. The same ad valorem duty according to the nature of the security as upon a mortgage.

(2)      Marketable Security being a security transferable by delivery—

₦ k

For every ₦20, and also for any fractional part of ₦20 of the money thereby secured …………… 0.30

(3)      Marketable Security being such security as last aforesaid given in substitution for a like security duly stamped in conformity with the law in force when it became subject to duty—

₦ k

For every ₦4, and also for any fractional part of ₦40 of the Money thereby secured …………….. 0.05

(4) Transfer, Assignment or Disposition of a marketable security of any description—

Upon a sale thereof

See Conveyance or Transfer on sale.

Upon a mortgage thereof

See Mortgage of Stock or Marketable Security.

₦ k

In other case than a Sale or Mortgage………………………………………………………. 1.00

See section 2 and 61 to 63.

Mortgage, bond, covenant (except a marketable security, otherwise specially charged with duty), and warrant of attorney to confess and enter up judgment.

(1)      Being the only or principal or primary security (other than an equitable mortgage) for the payment or repayment of money.

₦ k

For every ₦200, and also for every fractional part of ₦200, of the amount secured ………………. 0.50

  1. Being a collateral, or auxiliary, or additional or substituted security, or by way of further assurance for the above-mentioned purpose, where the principal or primary security is duly stamped.

₦ k

For every ₦200, and also for every fractional part of ₦200, of the amount secured ………………. 0.10

  1. Being an equitable mortgage.

₦ k

For every ₦200, and also for every fractional part of ₦200, of the amount secured ………………. 0.20

SCHEDULE—continued

(4)      Transfer, assignment or disposition of any mortgage, bond, or covenant (except a marketable security) or of any money or stock secured by any such instrument, or by any warrant of attorney to enter up judgment, or by any judgment—

₦ k

For every ₦200, and also for any fractional part of ₦200, of the amount transferred, assigned or disposed, exclusive of interest which is not in arrear……………………… 0.10

And also where any further money is added to the money already secured.

The same duty as a principal security for such further money.

(5)      Reconveyance, release, discharge, surrender, resurrender, warrant to vacate, or renunciation of any such security as aforesaid, or of the benefit thereof, or of the money there secured.

₦ k

For every ₦200, and also for any fractional part of ₦200, of the total amount or value of the money at any time secured …………………………………………………………………………………………….. 0.10

See section 65 – 67.

Mortgage of stock or marketable security

Under hand only

See Agreement and section 28.

By deed

See Mortgage, and section 65.

Mutual Disposition

See Exchange.

₦ k

Notarial Act of any kind whatsoever (except a protest of a Bill of Exchange or promissory note) …………………………………………………………………………………………….. 0.10

See section 69.

Partition or division, Instruments effecting

In the case specified in section 54, see that section.

₦ k

In any other case……………………………………………………………………………………………….. 2.00

Power of Attorney

See Letter of Attorney.

₦ k

Procuration, deed, or other instrument of …………………………………………. 1.00

Receipt given for or upon the payment of money amounting to ₦4 or upwards ……………………. 0.01½

Exemptions

(1)      Receipt given by any person or his representative for or on account of any salary, pay or wages or for or on account of any other like payment made to or for the account or benefit of any person being the holder of an office or an employee, in respect of his office or employment, or for or on account of money paid in respect of any pension, superannuation allowance, compassionate allowance or other like allowance.

SCHEDULE—continued

(2)      Receipt endorsed or otherwise written upon or contained in any instrument liable to stamp duty and duly stamped, acknowledging the receipt of the consideration money therein expressed, or the receipt of any principal money, interest or annuity thereby secured or therein mentioned.

(3)      Receipt given for money deposited in any bank, or with any banker, to be accounted for and expressed to be received of the person to whom the same is to be accounted for, or for money withdrawn from a savings bank account.

(4)      Receipt given by the payee of a money order.

(5)      Receipt given for or upon the payment of any Government duties or taxes or of money to or for the use of the Government.

(6)      The duplicate of any receipt required by Government to be given in duplicate, the original receipt being duly stamped.

(7)      Receipt given by an officer of a public department of the Government for money paid by way of imprest or advance, or in adjustment of account, where he derives pocket expenses due from Government.

(8)      Receipt given for drawback or bounty upon the exportation of any goods or merchandise.

(9)      Receipt given for the return of any moneys over-collected by Government.

(10)    Receipt given by a prisoner on discharge, for money placed on deposit in the Treasury, or otherwise retained, during the term of his imprisonment.

(11)    Receipt given by an accused person for money or other property taken from him on his arrest.

(12)    Receipt given for money given or subscribed to the Nigerian Troops Comforts and Welfare Fund.

(13)    Receipt given for money given or subscribed to the Nigerian Red Cross Society.

Reconveyance, release or renunciation of any security

See Mortgage.

Release or renunciation of any property, or of any right or interest in any property

Upon a sale

See Conveyance on Sale.

By way of security

See Mortgage.

₦ k

In any other case ………………………………………………………………………………. 2.00

Renunciation

See Reconveyance and Release.

₦ k

Revocation of any use or trust of any property by any writing, not being a will …………………… 1.00

Settlement

₦ k

Any instrument, whether voluntary or upon any good or valuable consideration other than a bona fide pecuniary consideration whereby any definite and certain principal sum of money (whether charged or chargeable on lands or other hereditaments or not, or to be laid out in the purchase of lands or other hereditaments or not) or any definite and certain amount of stock, or any security is settled or agreed to be settled in any manner whatsoever for every ₦200, and also for any fractional part of ₦200 of the amount or value of the property settled or agreed to be settled …………………………………………………………………………………………………….. 0.50

SCHEDULE—continued

Exemption

Instrument of appointment relating to any property in favour of person specially named or described as the objects of a power of appointment, where duty has been duly paid in respect of the same property upon the settlement creating the power or the grant of representation of any will or testamentary instrument creating the power.

See sections 73 – 75.

Superannuation Annuity

See Bond, covenant.

₦ k

Surrender of any kind whatsoever not chargeable with duty as a conveyance on sale or a mortgage…………………………………………………………………………………………………………………………… 1.00

Transfer

See Conveyance or Transfer.

Voting Paper

₦ k

Any instrument for the purpose of voting by any person entitled to vote at any meeting of any body exercising a public trust, or of the members, or contributors to the funds of any society or institution……………………………………………………………………………………… 0. 01½

See section 59.

Warrant of Attorney to confess and enter up a judgment given as a security for the payment or repayment of money.

See Mortgage

₦ k

Warrant of Attorney of any other kind …………………………………………………………………………….. 2.00

Warrant for Goods ……………………………………………………………………………………………………….. 0.05

Exemptions

(1)      Any document or writing given by an inland carrier acknowledging the receipt of goods conveyed by such carrier.

(2)      A weight note issued together with a duly stamped warrant, and relating solely to the same goods, wares, or merchandise.

See section 76.

General exemptions from all stamp duties

(1)      Instruments for the sale, transfer or other disposition, either absolutely, or by way of mortgage, or otherwise, of any ship or vessel or any part, interest, share or property of or in any ship or vessel.

(2)      All instruments on which the duty would be payable by Government.

(3)      All instruments on which the duty would be payable locally by Her Majesty’s Government in the United Kingdom or any of the department thereof.

(4)      An instrument of apprenticeship to which the Government is a party.

(5)      Bond given by public officer for the execution of his duties.

CHAPTER S10

STAMP DUTIES LAW

SUBSIDIARY LEGISLATION

List of Subsidiary Legislation

  1. Commissioner of Stamp Duties (Appointment) Notice.
  2. Stamp Duties (Custody of Dies) Regulations.

COMMISSIONER OF STAMP DUTIES (APPOINTMENT) NOTICE

  1. The Chairman of the Board of Internal Revenue is hereby appointed to be sole Commissioner of Stamp Duties.
  2. A person appointed sole Commissioner of Stamp Duties by paragraph 1 of this Notice shall have power to delegate such powers in writing as he may deem fit to all or any of the persons mentioned in the Schedule to this Notice.

SCHEDULE

Persons to whom powers may be delegated

(a)      Deputy Chairman Board of Internal Revenue Headquarters;

(b)      Chief Inspector of Taxes, Board of Internal Revenue Headquarters;

(c)      The Assessment Authority, Board of Internal Revenue Ogoja;

(d)      The Assessment Authority, Board of Internal Revenue Ikom.

STAMP DUTIES (CUSTODY OF DIES), REGULATIONS

  1. These regulations may be cited as the Stamp Duties (Custody of Dies) Regulations.
  2. The dies used under the authority of the Law shall be kept in the custody of the Chairman of the Board of Internal Revenue.
  3. The Chairman of the Board of Internal Revenue, subject to the production of such evidence by affidavit or otherwise as he may require, shall make allowance for stamps spoiled in the cases hereinafter mentioned, that is to say:

(1)      The stamp on any material inadvertently and undersignedly spoiled, obliterated or by any means rendered unfit for the purpose intended, before the material bears the signature of any person, or any instrument written thereon is executed by any party.

(2)     Any adhesive stamp which has been inadvertently and undesignedly spoiled or rendered unfit for use and has not in the opinion of the Chairman of the Board of Internal Revenue been affixed to any material.

(3)      The stamp used for any of the following instruments—

(a)      an instrument executed by any party thereto, but afterwards found to be absolutely void from the beginning;

(b)      an instrument executed by any party thereto, but afterwards found unfit, by reason of any error or mistake therein, for the purpose originally intended;

(c)      an instrument executed by any party thereto, which has not been made use of for any purpose whatever and which by reason of the inability or refusal of some necessary party to sign the same or to complete the transaction according to the instrument is incomplete and insufficient for the purpose for which it was intended;

(d)      an instrument executed by any party thereto which, by reason of the refusal of any person to act under the same, or for want of registration within the time required by law, fails of the intended purpose or becomes void;

(e)      an instrument executed by any party thereto which is inadvertently and undesignedly spoiled and in lieu thereof another instrument made between the same parties and for the same purpose is executed and duly stamped, or which becomes useless in consequence of the transaction intended to be thereby effected being effected by some other instrument duly stamped:

Provided that—

(i)       the application for relief is made within six months after the stamp has been spoiled or become useless or in the case of an executed instrument after the date of the instrument or, if it is not dated, within six months after the execution thereof by the person by whom it was first or alone executed;

(ii)      in the case of an instrument which has become void for want of registration within the time required by law, failure to register such instrument is not due to the neglect of the person to whom relief would ordinarily be given under these regulations.

  1. The Chairman of the Board of Internal Revenue may in his discretion make allowance for spoiled stamps either in stamps or in money.

 

Law Nigeria Admin
Law Nigeria Admin

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