Perhaps the Minister will elaborate on this section which concerns a transfer on divorce.
SECTION 99.
Question proposed: "That section 99 stand part of the Bill."
The Family Law Act, 1995, and the Family Law (Divorce) Act, 1996, exempted from stamp duty certain transfers of property between former spouses. The transfers exempted were those made consequent on a court order made under the 1995 or the 1996 Act. As it is more appropriate that taxation measures are included in a Finance Bill, I am re-enacting those stamp duty exemptions in this year's Bill.
Why does it have to be pursuant to a court order? Is that not a licence for lawyers to make money? Why can people not resolve their differences amicably and not litigate transfers of property?
The scenario where subject to the divorce the divorced spouses decide, due to the changed circumstances of one or other of them, to transfer certain property between them but they want to avoid going to court do so is not likely to arise frequently in practice. If it does become an issue, it can be considered in the context of future Finance Bills. We have simply taken what was in the relevant legislation, the 1996 Act.
I am not criticising anybody. If A and B divorce and afterwards realise that in pursuance of their settlement they should have done X and Y, the husband finds the maintenance is too much for him and decides to give the house to his former wife, it is a bit much that he should have to get a court order. Dispositions between husband and wife are not subject to this. The fact that a person has been divorced should not mean they have to go back to court to avail of a stamp duty exemption.
Perhaps an amendment might cover this point.
It requires a good deal of thought but, by the same token, it should be done. It should be possible to introduce an amendment by Report Stage because somebody will fall foul of this. Yesterday, the Minister said there was a device which monitors noise, but we will not hear much noise about this.
Perhaps a consequent court order or a legal separation agreement or a divorce would suffice.
Something like that would do.
A court order or——
Or an agreement which appears to the Revenue Commissioners to be consequent upon ——
There is no great urgency with this because of the draw down on divorce proceedings. I have been advised that it would be better to look at this in the context of next year's Finance Bill because of the implications for other types of relationships.
Question put and agreed to.
NEW SECTION 9.
I move amendment No. 103:
In page 85, before section 100, to insert the following new section:
"100.—(1) No stamp duty shall be chargeable on any instrument under which any land, easement, way-leave, water right or other right whatsoever over or in respect of the land or water is acquired by the body to be established under subsection (1) of section 14 of the Dublin Docklands Development Authority Act, 1997.
(2) Subsection (1) shall have effect as respects instruments executed on or after the 1st day of May, 1997.
(3) Section 65 of the Finance Act, 1989, is hereby repealed.".
Stamp duty is normally payable on instruments which give effect to transfers of land. This section exempts from stamp duty transfers of land to the Dublin Docklands Authority established under the provisions of the Act of the same name. This exemption is similar to that provided to the Custom House Docks Development Authority which the new authority will replace.
Amendment agreed to.
Section 100 agreed to.
NEW SECTION.
I move amendment No. 104:
In page 85, before section 101, but in Part IV, to insert the following new section:
"101.—(1) The following exemption under the Heading ‘BILL OF EXCHANGE or PROMISSORY NOTE', in the First Schedule (as amended by the Finance Act, 1970) to the Stamp Act, 1891, is hereby repealed:
‘(1) Bill or note issued by the Bank of England or the Bank of Ireland.'.
(2) This section shall have effect with respect to instruments executed on or after the date of passing of this Act.".
The amendment removes an exemption which the Bank of England and the Bank of Ireland enjoy on the 7p duty on cheques, bank drafts, etc. It dates from the time when these were liable to duty, whether drawn in or outside the State, and the Bank of Ireland carried out the functions of banker for the Government of the day. The removal of this anomaly is part of the ongoing process of restructuring and modernising the law on stamp duty.
Amendment agreed to.
Section 101 agreed to.