Stamp duty is not self-assessed and forgotten. The Collector of Stamp Duties assesses it, may amend the assessment later, and the Stamp Duties Act (Chapter 117) provides a defined objection and appeal path with short deadlines.
Assessment
Section 20 governs the assessment of duty. Supporting provisions give the Collector what is needed to do it:
- Section 13 — a statement of facts affecting liability to duty.
- Section 23 — furnishing an abstract of the instrument and evidence.
- Section 14A — the value of property conveyed or transferred; section 15 for marketable securities; section 14 for money in a currency other than kina.
- Section 10A — stamp duty returns.
- Section 16 — duty on other instruments; section 11 where an instrument relates to several distinct matters; section 12 for duplicates and counterparts.
The Collector also has investigative powers: section 24 (public officers to permit books to be inspected), section 25 (access to books), and section 25A (the Collector may obtain information and evidence). Section 4A imposes secrecy obligations on officers in return.
Where the Collector considers the stated consideration understates the value, the assessment proceeds on value. Understating the price to reduce duty is not a saving — it is an exposure. See the anti-avoidance rules.
The Collector can reopen an assessment
Section 13A allows the Collector, after assessing duty or penalty, to amend the assessment by making such alterations as he deems necessary.
- Additional duty or penalty from an amended assessment is a debt due to the State, recoverable as stamp duty under section 8.
- If the amendment reduces the amount, the reduction is deemed not to have been payable.
- The Collector must issue written notice of the amended assessment and of the amount payable or overpaid, as soon as practicable.
- “Penalty” here includes interest payable.
Objecting: 30 days, and pay first
Section 20A sets out the objection. Within 30 days after the date of an assessment or amended assessment, and on payment of the duty and penalty in conformity with the assessment, a person dissatisfied with it may object in writing to the Collector, stating in detail the grounds for the objection.
You must pay first. The right to object is conditioned on payment in conformity with the assessment. An unpaid objection is not a valid objection.
You must give detailed grounds. “The assessment is too high” is not grounds. Set out the facts, the item of Schedule 1 you say applies, the valuation you contend for, and why.
The Commissioner General considers the objection and serves written notice of the decision and the reasons for it. Where an objection is allowed in whole or part and duty or penalty is reduced, the Collector refunds the amount to the party by whom or on whose behalf it was paid — or to that person's executors, administrators or assigns.
Appealing: 60 days to the National Court
Under section 21, where a person is dissatisfied with the decision on an objection, they may — within 60 days of the date of service of the section 20A(2) notice — appeal to the National Court in accordance with the National Court Rules, stating the facts of the case and the grounds of appeal.
On the hearing, the National Court shall:
- determine the questions at issue; and
- assess the duty and penalty (if any) that the Court considers chargeable.
Where the Court's assessment is less than the Collector's, the Court orders the Collector to repay the excess duty or penalty paid by the appellant.
You cannot appeal to the National Court without first objecting under section 20A. Objection is the gateway; appeal is the review of the decision on that objection. Missing the 30 days closes the gateway.
The timeline at a glance
| Step | Provision | Deadline |
|---|---|---|
| Stamp or lodge the instrument | s 18(1A) | 60 days after execution in PNG |
| Assessment issued | s 20 | — |
| Amended assessment | s 13A | — |
| Object in writing, having paid | s 20A | 30 days from the assessment |
| Appeal to the National Court | s 21 | 60 days from service of the objection decision |
| Claim a refund | s 93 | 12 months after payment |
Recovery, and other machinery
Section 8 deals with liability for duty and recovery. Section 95 allows substituted service, and section 96 provides for refund set-off — a refund otherwise due can be applied against other amounts owing.
Thirty days is short, and it runs from the date of the assessment, not from when you opened the envelope. If you disagree with an assessment, take advice immediately. Speak to a lawyer or an accountant, and see getting legal help.
Sources
- Stamp Duties Act (Chapter 117) — vLex
- Stamp Duties (Penalties Amendment) Act 2001 — PacLII
- PNG Consolidated Legislation — PacLII index
Section 21 appeals are governed by the National Court Rules, which are published on PacLII under PNG Court Rules.