Stamp Duties Act 2309updated
Stamp Duties Act 2309updated
Stamp Duties Act 2309updated
zw
CHAPTER 23:09
ARRANGEMENT OF SECTIONS
PART I
P RELIMINARY
Section
1. Short title.
2. Interpretation.
PART II
ADMINISTRATION
16. Cheques.
17. Broker’s notes.
17A. Off-market share transfer instruments
18. Policies of insurance.
PART V
P ROVISIONS R ELATING TO R EGISTRATION OF OWNERSHIP OF, AND R EAL RIGHTS IN , IMMOVABLE P ROPERTY
36. Offences in relation to stamping of instruments, defacement of stamps and evasion of duty.
37. Offences in relation to dies and stamps and unlawful possession of stamped paper.
38. Presumption in case of forged stamps.
39. Powers of search for and seizure of forged stamps.
40. Penalty for failure to stamp and for use of unstamped instrument.
PART VII
S UPPLEMENTARY AND M ISCELLANEOUS
AN ACT to impose duties and fees in respect of certain instruments, to provide for the stamping of
such instruments, to provide for the management of stamp duties and fees and for other matters
connected with the foregoing.
[Date of commencement: 1st October, 1954.]
PART I
P RELIMINARY
1 Short title
This Act may be cited as the Stamp Duties Act [Chapter 23:09].
2 Interpretation
In this Act—
“affixed”, in relation to an adhesive stamp, means securely fixed by means of an adhesive paste and by no
other means;
“authorized officer” means a person appointed in terms of section four;
“broker” includes a person who is licensed or required to be licensed as a broker under the Securities Act
[Chapter 24:25], where he or she deals in securities on behalf of a principal;
[Definition inserted by section 120 of Act 17 of 2004]
“broker’s note” means the note required to be sent by any broker or agent to his principal advising the sale or
purchase of any marketable security or of any movable or immovable property;
[Definition amended by section 120 of Act 17 of 2004]
“Commissioner” means—
(a) the Commissioner in charge of the department of the Zimbabwe Revenue Authority which is
declared in terms of the Revenue Authority Act [Chapter 23:11] to be responsible for assessing,
collecting and enforcing the payment of the taxes leviable under the Income Tax Act [Chapter
23:06]; or
(b) the Commissioner-General of the Zimbabwe Revenue Authority, in relation to any function
which he has been authorised under the Revenue Authority Act [Chapter 23:11] to exercise;
[Definition substituted by section 36 of Act 17 of 1999]
“duly stamped”, in relation to an instrument, means that the instrument is stamped with a stamp as defined in
this section to the proper value including the penalty, if any, and that such stamp has been cancelled in
accordance with law by the proper person;
“duty” means any duty leviable by means of stamps under this Act or any other enactment;
“executed”, in relation to an instrument, means executed as required by or sufficient in law;
“forge” or “forged” includes counterfeit or counterfeited;
“instrument” means any written document executed in Zimbabwe or executed outside Zimbabwe relating to
any matter or thing performed or done or to be performed or done in Zimbabwe;
“interim policy of insurance” means any instrument issued within Zimbabwe which purports to cover any
risk under a contract of insurance pending the receipt from outside Zimbabwe of a final policy covering
the same risk;
“local authority” means a municipal council, rural district council or town council;
“marketable security” means—
(a) any security, stock, debenture, share or any other interest capable of being sold in a share market
or exchange or otherwise;
(b) the scrip, certificate, warrant or other instrument by which the ownership of or title to any such
security, stock, debenture, share or other interest aforesaid is represented;
“material” includes material of every description upon which words or figures can be expressed;
“Minister” means the Minister of Finance or any other Minister to whom the President may, from time to
time, assign the administration of this Act;
“policy of life insurance” means a policy upon any life or lives or upon any event or contingency relating to
or depending upon any life or lives, except a policy of insurance against accident to a person or in re-
spect of any injury, incapacity, sickness or the like, or a policy whereby a sum is payable to cover any
compensation or damage due under an enactment relating to workers’ compensation or employer’s li-
ability or the common law, in respect of the death or illness of or injury to an employee;
“revenue officer” means the Commissioner or any officer in the department referred to in paragraph (a) of
the definition of “Commissioner;
[Definition substituted by section 36 of Act 17 of 1999]
“stamp” means a stamp impressed by means of a die or an adhesive stamp;
“stamped”, in relation to an instrument or any material, means that the instrument or material is impressed
with a stamp to the proper value by means of a die or has an adhesive stamp of the proper value affixed
thereto;
“this Act” includes Chapter II of the Finance Act [Chapter 23:04];
“unstamped” means not duly stamped as required by this Act or any other enactment;
“write”, “written”, “writing” includes every mode in which words or figures can be impressed upon material.
PART II
ADMINISTRATION
4 Authorized officers
The Minister may, by notice in a statutory instrument, appoint any person or class of persons as an authorized officer
or authorized officers for the purposes of this Act in respect of all instruments or other matters or such of the foregoing or
such classes thereof as may be specified in the notice.
PART III
S TAMP DUTY, S TAMPING OF INSTRUMENTS AND DEFACEMENT OF S TAMPS
16 Cheques
(1) Subject to this section, every person who issues, receives, endorses, transfers, negotiates, presents for
payment or pays any cheque liable to duty and not duly stamped shall be liable to the penalty provided by this Act,
and the person who takes or receives from any other person any such cheque, either in payment or as security or
by purchase or otherwise, shall not be entitled to recover thereon or to make the same available for any other
purpose whatever.
(2) In the case of any cheque delivered or presented without being duly stamped, any banker to whom it is
presented in the ordinary course of business may—
(a) duly deface any stamp thereon which is not duly defaced; or
(b) if the cheque is unstamped, affix thereto a stamp or stamps both for the amount of duty for which the
cheque is liable and for the amount of any validating penalty prescribed in section thirteen, and deface
the stamps as if he were the authorized person mentioned in that section;
and any such cheque shall thereupon, so far as respects the duty, be deemed to be valid and available.
(3) Where a cheque has been stamped in accordance with subsection (2)—
(a) the banker who stamped the cheque shall be entitled to charge the value of the stamps affixed thereunder
in account against the person from whom the cheque was received; and
(b) any person against whom any such charge is made shall have the right to recover the amount charged
from the drawer or any endorser of the cheque or from any other person who was in default in respect of
the stamping of the cheque.
17 Broker’s notes
(1) Every person who effects any sale or purchase as a broker or agent shall, within seven days thereafter,
make, execute and transmit to the principal or principals from whom he claims any fee for brokerage, commission
or agency in such transaction, a broker’s note or notes which shall specify the marketable security or the property
sold or purchased, and shall state the full and true sale or purchase price.
[Subsection amended by section 9 of Act 18 of 2004]
(2) No broker, agent or other such person shall have any legal claim to any charge for brokerage, commission
or agency with reference to any sale or purchase unless a duly stamped broker’s note is issued in conformity with
this section; and there shall be legibly and conspicuously printed or stamped on the face of every such note issued
or used the following words: “This note requires to be stamped and unless ‘duly stamped’ no claim for brokerage,
commission or agency can be legally made”.
(3) The duty upon a broker’s note may be added to the charge for brokerage or agency.
(4) Every broker or agent shall keep in book form a copy or counterfoil of every broker’s note issued by him
and such book shall at all reasonable times be open to inspection by any person acting under the authority of a
revenue officer.
17A Off-market share transfer instruments
(1) Every person (hereinafter referred to as the “transfer secretary”) who registers the transfer of a marketable
security
(a) that is a listed security as defined in the Zimbabwe Stock Exchange Act [Chapter 24:18]; and
(b) which is purchased or sold otherwise than through a share market or exchange;
shall transmit to a revenue officer the duty payable in respect of the transfer, together with an instrument (herein-
after referred to as an “off-market share transfer instrument”) specifying the marketable security sold or purchased
and the full and true sale or purchase price.
(2) Upon due compliance by a transfer secretary with subsection (1), a revenue officer shall r eturn it, duly
stamped, to the transfer secretary.
(3) Notwithstanding any other law to the contrary, no transfer of a marketable security referred to in subsec-
tion (1) shall be deemed to have been completed before the date on which the off-market share transfer instrument
relating to the transfer is duly stamped.
[Subsection inserted by section 23 of Act 10 of 2003]
18 Policies of insurance
(1) Where a renewal of any policy of insurance liable to duty is effected by payment of premium, a premium-
receipt shall be issued and stamped for the proper amount of duty payable on renewal.
(2) Every person who—
(a) receives or takes credit for any premium or consideration for any policy of insurance or renewal thereof
liable to duty and does not within one month after receiving or taking credit for such premium or co n-
sideration make out and execute a duly stamped policy, receipt or instrument; or
(b) pays or allows in account, or agrees to pay or allow in account, any money upon or in respect of any
policy of insurance or renewal thereof which is not duly stamped;
shall incur the penalty provided by this Act.
(3) Where any increased stamp duty becomes payable on a policy of insurance after the execution thereof the
payment of such duty may be denoted by affixing stamps to the policy or to the endorsement or other instrument
which sets out the circumstances giving rise to such increase in duty or to any receipt which acknowledges the
payment of any premium.
(4) Any person issuing tickets, coupons, notices, bills or other documents purporting to be, or to entitle to, an
insurance in the event of death, accident, sickness or the like or any person in Zimbabwe acting as agent in any
such matter shall annually in the month of January transmit or deliver to a revenue officer a declaration setting
forth, with such particulars as may be required, the total amount derived during the year ending the previous 31st
December from the issues or sales above mentioned and shall at the same time pay the duty due thereon and, in
default thereof, shall incur the penalty provided by this Act.
[Subsection amended by section 33 of Act 17 of 1997]
PART V
P ROVISIONS R ELATING TO R EGISTRATION OF OWNERSHIP OF, AND R EAL RIGHTS IN , IMMOVABLE P ROPERTY
19 Interpretation in Part V
In this Part—
“date of acquisition” means, in the case of the acquisition of property by way of a transaction, the date on
which the transaction was entered into, irrespective of whether the transaction was conditional or not or
was entered into for the benefit of a company already registered or on behalf of a company still to be
registered and, in the case of the acquisition of property otherwise than by way of a transaction, the date
upon which the person who so acquired the property became entitled to claim it:
Provided that where property has been acquired by the exercise of an option to purchase or a right
of pre-emption, the date of acquisition shall be the date upon which the option or right of pre-emption
was exercised;
“declared value”, in relation to property, means the value of the property as declared in the declaration com-
pleted in terms of section twenty-eight by the person who has acquired the property;
“fair value”, in relation to property, means the fair market value of that property as at the date of acquisition
thereof;
“property” means immovable property of any description other than—
(a) a right under a mortgage bond; or
(b) a lease where the letting is for a period of less than twenty-five years; or
(c) a mining tribute agreement; or
(d) any servitude not being a fideicommissum, usufruct, usus or habitatio;
“transaction” means an agreement whereby one party thereto agrees to sell, grant, donate, cede, exchange or
otherwise dispose of property to another, and includes leases of twenty-five years’ duration or more.
20 Application
This Part shall apply in respect of the registration by the Registrar of Deeds of the acquisition of property.
21 Joint owners
Whenever any property is registered by the Registrar of Deeds in the names of two or more persons as joint
owners, all such persons shall be deemed for the purposes of payment of duty to have equal shares and interest in
the property unless the particular share of interest of each is declared and set forth in the title deed.
22 State grants
Notwithstanding anything to the contrary contained in this Part or in Item 5 of the Schedule to Chapter II of
the Finance Act [Chapter 23:04], in the case of a grant of land by the State no duty shall be payable in respect of
the value of any improvements made to the land by the grantee at his own expense between the date of occupation
of the land by the grantee and the date of the grant.
23 Value of property on which duty payable
(1) Subject to this section, the value on which duty shall be payable shall be the amount of consideration
payable by the person who has acquired the property or, if no consideration is payable, the declared value of the
property.
(2) In the case of a transaction whereby one property is exchanged for another and no additional considera-
tion is payable by either party to the transaction, the value on which duty shall be payable in respect of the acquisi-
tion of each property shall, subject to subsections (4) and (5), be the declared value of each property:
Provided that if the properties exchanged are not of equal value, duty shall, subject to the said provisions, be
paid in respect of the acquisition of each property on the declared value of the property which has the greater
value.
(3) In the case of a transaction whereby one property is exchanged for another and additional consideration is
payable by either party to the transaction, the value on which duty shall be payable shall, subject to subsections (4)
and (5), be—
(a) in respect of the acquisition of the property for which the additional consideration is payable, the de-
clared value of that property, or the declared value of the property given in exchange for that property
plus the additional consideration payable, whichever is the greater; and
(b) in respect of the acquisition of the other property, the declared value thereof, or the declared value of the
property given in exchange for that property less the additional consideration payable, whichever is the
greater.
(4) If the Registrar of Deeds is of the opinion that the consideration payable or the declared value is less than
the fair value of the property in question he may determine the fair value of that property, and thereupon the duty
shall be calculated in accordance with the fair value as so determined or the consideration payable or the declared
value, whichever is the greatest.
(5) In determining the fair value in terms of subsection (4), the Registrar of Deeds shall have regard to any
valuation of the property concerned made on behalf of the person liable to pay the duty by a member of such
institution or association of valuers as is prescribed, and may have regard, according to the circumstances of the
case, inter alia, to any one or more of the following—
(a) the nature of the right in land and the period for which it has been acquired or, where it has been ac-
quired for an indefinite period or for the natural life of any person, the period for which it is likely to be
enjoyed;
(b) the local authority valuation of the property concerned;
(c) any valuation of the property concerned made by a valuation officer of the State;
(d) any valuation of the property concerned made by a disinterested person who is appointed by the Regis-
trar of Deeds and is a member of an institution or association prescribed in terms of this subsection.
(6) If the fair value of property as determined by the Registrar of Deeds—
(a) exceeds the amount of the consideration payable in respect of that property, or the d eclared value, as the
case may be, by not less than one-third of such consideration or declared value, as the case may be, the
costs of any valuation made by a person referred to in paragraph (d) of subsection (5) shall be paid by
the person liable for the payment of the duty;
(b) does not exceed such consideration or declared value, as the case may be, to such extent, the costs of
such valuation shall be borne by the State.
(7) Subsections (4) and (5) shall not apply in respect of the acquisition of property sold by public auction,
unless the Registrar of Deeds is satisfied that the sale was not a bona fide sale by public auction, or that there was
collusion between the seller and the purchaser or their agents.
24 Separate properties acquired in one transaction
(1) Where more than one property is the subject of the same transaction the rate of duty payable in respect of
each property shall be calculated on the value of that property as if it were the subject of a separate transaction:
Provided that where one building stands on two or more pieces of land such pieces of land shall be regarded
as being one property.
(2) For the purposes of this section—
“property” and “piece of land” mean land which is described as a separate entity in any document, diagram
or plan tendered for registration by the Registrar of Deeds.
25 Additions to consideration
If either party to a transaction has undertaken, agreed, or in any manner become liable, in connection with the
acquisition, or the registration of the acquisition, of property, to pay to any person whomsoever any sum of money
over and above the sum paid or to be paid to the seller, such sum not being one to which section twenty-six ap-
plies, then such sum shall be added to the consideration payable in respect of the acquisition of the property.
26 Exclusions from consideration
There shall for the purpose of the payment of duty be excluded from the consideration payable in respect of
the acquisition of any property—
(a) any duty, imposts, costs or fees payable in connection with the registration of the acquisition of the
property, including—
(i) the costs of survey of the property; and
(ii) the charges and commission payable to any auctioneer, broker or agent by whom the sale of the
property may have been effected not exceeding five per centum of the purchase price; and
(iii) the charges of legal practitioners, conveyancers and agents incurred in the transfer of the prop-
erty and the cost of all deeds, including any mortgage bond, necessary for such transfer;
and
(b) any sum paid—
(i) in terms of a condition in a permit imposed in terms of subsection (1) of section 42 of the Re-
gional, Town and Country Planning Act [Chapter 29:12]; or
(ii) as endowment moneys in terms of the Town and Country Planning Act [Chapter 213 of 1974].
27 Valuation of consideration
(1) Where the consideration payable in respect of the acquisition of any property is in the form of rent, roy-
alty, share of profits or any other periodical payment, and the actual amounts of the periodical payments are fixed
or are determinable in terms of the transaction, the value of the consideration shall be the aggregate of the said
amounts payable over the period, including renewal periods, for which the property has been acquired by the
person liable to pay the duty or, where the said aggregate amount exceeds the fair value of the property as deter-
mined by the Registrar of Deeds, mutatis mutandis, in accordance with subsection (5) of section twenty-three the
value of the consideration shall be such fair value.
(2) Where the consideration in respect of the acquisition of any property is in the form of rent, royalty, share
of profits or any other periodical payment, and the actual amounts of the periodical payments are not fixed, or if
the property has been acquired for an indefinite or unlimited period or for the natural life of any person, the value
of the consideration shall be a value which the Registrar of Deeds considers fair in the circumstances.
(3) Where the consideration in respect of the acquisition of any property is in the form of goods, services,
rights or privileges, the value of the consideration shall be the current market value of such goods, services, rights
or privileges at the date of acquisition or, where the market value of such goods, services, rights or privileges as at
the date of acquisition cannot be ascertained, the value of the consideration shall be a value which the Registrar of
Deeds considers fair in the circumstances.
(4) Where the consideration in respect of the acquisition of any property is in the form of shares in or other
securities of a company, whether already registered or still to be registered, or is in the form of rights to acquire
such shares or securities, the value of the consideration shall be—
(a) in the case of shares or securities which, on the date of acquisition, are quoted on the official list of a
securities exchange registered under the Securities Act [Chapter 24:25] or on any recognized exchange
outside Zimbabwe, their middle market price on that date; or
[Paragraph amended by section 120 of Act 17 of 2004]
(b) in the case of other shares or securities or rights thereto, a value which the Registrar of Deeds considers
fair in the circumstances, and for the purpose of determining the fair value the Registrar of Deeds may
call for the value of the shares to be notified to him by the company auditor, and the cost of obtaining
any such valuation shall be borne by the person liable to pay the duty.
28 Declarations to be submitted to Registrar of Deeds
(1) Declarations appropriate to the manner of the acquisition of property in any particular case shall, in su b-
stance as near as possible to the forms prescribed, be submitted to the Registrar of Deeds by the parties, or, as the
case may be, the agents of the parties to the transaction whereby the property has been acquired, and if the Regis-
trar of Deeds so directs, also by the auctioneer, broker or other person who acted for or on behalf of either party to
the transaction or, if the property has been acquired otherwise than by way of a transaction, by the person who
acquired the property.
(2) Where no suitable form of declaration has been prescribed for any particular kind of acquisition of prop-
erty, the Registrar of Deeds may require from any person concerned in the acquisition a declaration setting forth
the material facts of the case and containing such other information as he may consider necessary.
(3) In every declaration completed in terms of this section, the person making the declaration shall state the
extent of the improvements, if any, upon the land, and such other particulars as may be prescribed.
29 Powers of Registrar of Deeds
(1) The Registrar of Deeds may—
(a) call upon any person to supply to him any information or to produce any documents which the Registrar
of Deeds may consider necessary for the purpose of determining the amount of the duty payable in re-
spect of the acquisition of any property;
(b) decline to accept any payment of duty otherwise than as a deposit on account of duty until the appropri-
ate declarations referred to in section twenty-eight are submitted to him;
(c) assess the amount of the duty payable in terms of this Part at any time that the declarations referred to in
section twenty-eight are submitted to him.
(2) If the Registrar of Deeds is satisfied that any declaration required to be completed in terms of section
twenty-eight cannot be obtained, he may dispense with the production of such declaration or may accept in lieu
thereof a declaration by some other person whom he considers able to furnish the particulars required to be given.
(3) Where any person claims to be exempted from the payment of duty in respect of the acquisition of prop-
erty, the Registrar of Deeds shall require due proof of all facts and circumstances on account of which such
exemption is claimed, and may require the production of any relevant documents.
(4) Where the Registrar of Deeds is satisfied in cases of fraud or where material information has been with-
held by any person that the duty payable under this Act in respect of the acquisition of any property has not been
paid in full, he shall, whether or not the acquisition has already been registered in the Deeds Registry, recover the
difference between the amount of the duty payable and the amount paid.
30 Registration of acquisition of property prohibited where duty not paid
The Registrar of Deeds shall not make any record in his Deeds Registry of an acquisition of property made on
or after the 30th July, 1964, if he has reason to believe that the amount of duty tendered in respect of the acquisi-
tion is less than the amount of duty payable under this Act.
31 Penalties
(1) Any person who wilfully or negligently fails to comply with any requirement or demand by the Registrar
of Deeds or the Commissioner under this Part shall be guilty of an offence and liable to a fine not exceeding level
seven or to imprisonment for a period not exceeding six months or to both such fine and such imprisonment.
(2) Any person who in supplying information, producing documents or making a declaration, required under
or by virtue of any of the provisions of this Part—
(a) knowingly fails to disclose any material fact relevant to the nature of the transaction by which property
has been acquired or to the consideration payable in respect of any property or to the value on which
duty is payable; or
(b) makes a false statement knowing it to be false or not reasonably believing it to be true;
shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not
exceeding two years or to both such fine and such imprisonment.
[Subsection substituted by section 28 of Act 15 of 2002]
(3) If, upon conviction of any person for an offence under subsection (1) or (2), it is proved that that person
has been previously convicted under either of those subsections, then such person shall be liable to a fine not
exceeding level fourteen, or to imprisonment for a period not exceeding the period provided in subsection (1) or
(2), as the case may be, or to both such fine and such imprisonment.
[Subsection inserted by section 23 of Act 10 of 2003]
32 Appeals from decisions of Registrar of Deeds
(1) Any person who considers himself aggrieved by a decision of the Registrar of Deeds under any of the
provisions of this Part or under Item 5 of the Schedule to Chapter II of the Finance Act [Chapter 23:04] may,
within thirty days after the decision became known to him, appeal to the Commissioner who may confirm, vary or
set aside such decision.
(2) For the purposes of subsection (1) the Commissioner may call for such documents, declarations and other
information as he may consider necessary.
(3) Any decision of the Commissioner in terms of this section relating to the fair value of any property or to
the value of any consideration payable in respect of the acquisition of any property shall, for the purposes of this
Act, be deemed to be a decision of the Registrar of Deeds.
33 Stamps on copy held by Registrar of Deeds
Any stamps denoting the payment of duty or fees paid in terms of this Part and Item 5 of the Schedule to
Chapter II of the Finance Act [Chapter 23:04] shall be affixed to, and any certificate made in terms of subsection
(2) of section six shall be endorsed upon, that copy of the instrument which is retained by the Registrar of Deeds.
34 Cancellations of acquisitions
As often as the acquisition of any property is by the judgment of a competent court set aside, cancelled or de-
clared or made void, no duty shall be payable thereon and any duty paid shall be refunded.
35 Regulations
The Minister may make regulations providing for—
(a) such matters as may in terms of this Part be prescribed; and
(b) the manner in which the value of a fideicommissum, usufruct, usus or habitatio may be ascertained for
the purposes of payment of duty.
PART VI
O FFENCES AND PENALTIES
37 Offences in relation to dies and stamps and unlawful possession of stamped paper
(1) Every person who does or causes or procures to be done or knowingly aids, abets or assists any other per-
son in doing any of the acts following, that is to say, who—
(a) forges a die or stamp;
(b) prints or makes an impression upon any material with a forged die knowing the same to be forged;
(c) with intent to defraud, prints or makes an impression upon any material from a genuine die;
(d) cuts, tears or in any way removes from any material any stamp, with intent that any fraudulent use
should be made of such stamp or of any part thereof;
(e) mutilates any stamp, with intent that any fraudulent use should be made of any part thereof;
(f) with intent to defraud, fixes or places upon any material any stamp or part of a stamp which, whether
with such intent or not, has been cut, torn or in any way removed from any other material;
(g) erases or otherwise removes, or does any act which appears to erase or remove, from any stamped
material any name, sum, date or other matter or thing whatsoever thereon written with intent that any
fraudulent use should be made of the stamp upon such material;
(h) sells or exposes for sale, or utters or uses, any forged stamp or any stamp which has been fraudulently
printed or impressed from a genuine die, knowing the same to be forged or to be so printed or so im-
pressed;
(i) knowingly and without lawful excuse, the proof whereof shall lie upon him, has in his possession any
forged die or stamp or any stamp which has been fraudulently printed or impressed from a genuine die,
or any stamp or part of a stamp which has been fraudulently cut, torn or otherwise removed from any
material or any stamp which has been fraudulently mutilated, or any stamped material out of which any
name, sum, date or other matter or thing has been fraudulently erased or otherwise, either really or a p-
parently, removed;
(j) with intent to defraud and so that the stamp may be used again, removes or causes to be removed from
any instrument any adhesive stamp;
(k) sells or offers for sale or utters any adhesive stamp which to his knowledge has been so removed, or
utters any instrument having thereon any adhesive stamp which has to his knowledge been so removed
as aforesaid;
shall be guilty of an offence and shall be liable to a fine not exceeding level seven or to imprisonment for a period
not exceeding two years or to both such fine and such imprisonment.
[Subsection substituted by section 30 of Act 15 of 2002]
(2) Every person who without lawful authority or excuse, the proof whereof shall lie upon him, purchases or
receives or knowingly has in his possession or custody—
(a) any paper manufactured or provided for the purpose of making or impressing stamps by or for the
proper authorities, before the same has been duly stamped and issued for public purposes; or
(b) any plate, die, dandy roller, mould or other implement peculiarly used in the manufacture of such paper;
shall be guilty of an offence and liable to a fine not exceeding level seven or to imprisonment for a period not
exceeding two years or to both such fine and such imprisonment.
[Subsection amended by section 4 of Act 22 of 2001]
38 Presumption in case of forged stamps
If any forged stamp is found in the possession of any person authorized to sell or distribute stamps, that per-
son shall, until the contrary is proved by him, be deemed to have had the stamp in his possession, knowing it to be
forged and with intent to sell, use or utter it, and shall be liable to the punishment hereinbefore provided in the
case of a person who sells or exposes for sale or utters or uses any forged stamp.
39 Powers of search for and seizure of forged stamps
(1) On sworn information that there is good reason to suspect any person of being guilty of any of the of-
fences mentioned in sections thirty-six, thirty-seven and thirty-eight, or to suspect that any stamps either forged,
stolen or fraudulently obtained are in any place or in the possession or custody of any person, any magistrate or
justice of the peace or any other officer who is authorized to issue a search warrant may issue a search warrant
authorizing any police officer or proper officer to search the said place or person, or any person suspected of
being or having been in any way engaged, or concerned in the commission of any such offence or of secreting any
machinery, implements or utensils applicable to the commission of any such offence, or any place where such
machinery, implements or utensils or any stamps, stolen, forged or fraudulently obtained may be, and, if upon the
search any of the said articles or things are found, the same may be seized and carried away, and shall afterwards
be delivered to the nearest magistrate, who shall have the custody thereof until the same are dealt with in accor-
dance with law.
(2) Any articles or things so seized shall be adjudged to be forfeited to the State by the court having jurisdic-
tion as to the offence, and thereafter shall be dealt with as the Minister may direct:
Provided that nothing herein contained shall affect the rights of any person who is otherwise entitled by law
to the possession or custody of any stamps, machinery, implements or utensils stolen or improperly obtained.
(3) Where any stamps are seized under warrant, the person authorized by the warrant shall, if required, give
to the person in whose custody or possession the stamps are found an acknowledgement of the number, particulars
and amount of the stamps, and permit the stamps to be marked on the back before the removal thereof.
40 Penalty for failure to stamp and for use of unstamped instrument
Save as is otherwise provided in this Act, any person liable to stamp any instrument liable to duty who fails to
stamp the same as required by this Act, or in any manner makes use of an unstamped instrument, shall be liable to
pay double the duty payable and shall in addition incur a penalty not exceeding an amount equivalent to a fine of
level six.
[Subsection amended by section 4 of Act 22 of 2001]
PART VII
S UPPLEMENTARY AND M ISCELLANEOUS