TAN NYOK CHIN PEMUNGUT DUTI SETEM

TAN NYOK CHIN PEMUNGUT DUTI SETEM

The court held the Collector correctly adjudicated ad valorem duty: the Deed of Settlement/renunciation and the subsequent Form 14A operated such that the beneficiaries' renunciation to the Plaintiff constituted a voluntary inter vivos disposition (gift) of beneficial interests; Form 14A effects the legal transfer of title and is the instrument chargeable under Item 66(c) read with Item 32(a) and s16(1), therefore ad valorem duty of RM20,800 was properly imposed.

Citation
BA-24NCvC-1560-08/2023 (Mahkamah Tinggi)
Parties
Plaintiff / Administratrix & Beneficiary: Tan Nyok Chin; Defendant / Revenue Authority: Pemungut Duti Setem (Collector of Stamp Duties), Lembaga Hasil Dalam Negeri
Court
High Court
Jurisdiction
Malaysia
Judgment Date
31 January 2024
Case Number
BA-24NCvC-1560-08/2023 (Mahkamah Tinggi)
Procedural Posture
Originating Summons Under S39 Stamp Act 1949 (appeal Against Stamp Assessment) / Judgment (high Court, Shah Alam)
Outcome
Originating Summons dismissed; Plaintiff's objection to ad valorem assessment dismissed
Legal Topics
Stamp Act 1949 First Schedule (items 32, 46, 66), Form 14 a (memorandum of Transfer), Vesting Order, Renunciation of Inheritance, Ad Valorem Vs Fixed Stamp Duty, Voluntary Disposition Inter Vivos
Source Language
Malay/English
Stamp Duty Law Succession / Estates Property Law Civil Procedure Stamp Act 1949 First Schedule (items 32, 46, 66) Form 14 a (memorandum of Transfer) Vesting Order Renunciation of Inheritance +2 more

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Parties

Tan Nyok Chin

Plaintiff / Administratrix & Beneficiary

Pemungut Duti Setem (Collector of Stamp Duties), Lembaga Hasil Dalam Negeri

Defendant / Revenue Authority

Procedural Posture

Originating Summons Under S39 Stamp Act 1949 (appeal Against Stamp Assessment) / Judgment (high Court, Shah Alam)

Legal Issues

  1. 1 Whether Form 14A effecting beneficiaries' renunciation to a single beneficiary is chargeable as a gift (ad valorem under Item 66(c) read with Item 32(a)) or as a fixed duty under Item 32(i)
  2. 2 Whether renunciation by beneficiaries constitutes a voluntary inter vivos disposition attracting ad valorem duty under s16(1)

Ratio Decidendi

The court held the Collector correctly adjudicated ad valorem duty: the Deed of Settlement/renunciation and the subsequent Form 14A operated such that the beneficiaries' renunciation to the Plaintiff constituted a voluntary inter vivos disposition (gift) of beneficial interests; Form 14A effects the legal transfer of title and is the instrument chargeable under Item 66(c) read with Item 32(a) and s16(1), therefore ad valorem duty of RM20,800 was properly imposed.

Court Disposition

Originating Summons dismissed; Plaintiff's objection to ad valorem assessment dismissed

Orders

  • Plaintiff's originating summons dismissed with costs to Defendant
  • Assessment of ad valorem stamp duty of RM20,800 upheld and not refundable