Stamp Duty Appeal

(1) Any person who is dissatisfied with an assessment of the Collector under section 36 may, by written notice (referred to in this Act as “notice of objection”), object to the assessment and apply to the Collector to review the assessment.

(2) Every notice of objection shall state the grounds of objection to the Collector’s assessment and shall be made within thirty days after the date of the assessment or such further period as the Collector may allow in any particular case.

(3) The person giving a notice of objection shall furnish further particulars and information in relation to the grounds of the objection if required to do so by the Collector in writing.

(5) After the objection has been determined, the Collector shall notify the person in writing of his decision.

(6) Where, on review, it appears to the Collector that the amount of duty originally assessed is excessive, he may cancel the original assessment and make such other assessment in substitution of the original assessment and shall serve on the person a notice of substituted assessment.

(7) The making of an objection shall not relieve the person of liability to pay the duty as required by this Act.

(8) Any reference in this Act to an assessment shall be construed as including a reference to a substituted assessment under subsection (6).

Thus, the higher market value is an opening for appeal. Thus, Eric has to provide reasons that the Market Value used for the calculation is inaccurate. The possible arguments could be:

• wear and tear and maintenance of the property over time;
• volatility of the market in recent time;
• improvement done to the property not realized due to compatibility of use;
• general well being of the surrounding area.

This notice of objection may be reviewed by the Collector and new assessment of Stamp Duty be carried out. However, if Eric remains not satisfied with the new Stamp Duty due, he can appeal to the High Court based on Section 39 within 21 days after having received the new assessment in writing.

Appeal to High Court
39. (1) Any person who is dissatisfied with the decision of the Collector under subsection 38A(5) may, within twenty-one days after the person is notified in writing of that decision and upon payment of duty in conformity therewith, appeal against the decision to the High Court by filing a notice of appeal with the High Court and may for that purpose require the Collector to state and sign a case, setting forth the question upon which is opinion was required, and the decision made by him.

Let say, the decision of the Stamp Collector is to charge the Stamp Duty based on the Market Value of RM2.4mio instead of RM2.55mio, and Eric is still not satisfied with such decision, he had but to appeal to the High Court for a decision.

If the High Court finds the assessment wrong, or otherwise, the decision of the High Court is final.

(4) If it is decided by the Court that the assessment of the Collector is erroneous, any excess of duty which may have been paid in conformity with the erroneous assessment, 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.

(5) If the assessment of the Collector is confirmed the Court may make an order for payment to the Collector of the costs incurred by him in relation to the appeal.