1976 : 14 PART II LIABILITY TO STAMP DUTY

1 FAERNATFTQUOUBERMUDASTAMP DUTIES ACT 19761976 : 14 TABLE OF CONTENTSPART IInterpretationPART IILIABILITY TO STAMP DUTYI nstruments chargeable to STAMP dutyInstruments executed outside BermudaExemptionsPART IIIPROVISIONS APPLICABLE TO INSTRUMENTS GENERALLYTime and LIABILITY to stampingMethod of stampingAdhesive stampsLicensing of stamping machinesNon-admissibility of unstamped instruments other than certain instruments filedunder the Land Title Registration Act 2011 Stamping by special permissionInstruments by or in favour of the CrownAppropriated stampsDenoting stampsDuplicates and counterpartsValue of propertyHow instruments are to be written and stampedInstruments to be separately charged with duty in certain casesInstruments chargeable under more than one HeadFacts and circumstances affecting duty to be set forthSplitting12345678910111213141516171 819201 STAMP DUTIES

2 ACT 1976 Periodic stamping of instrumentsPART IVADJUDICATION WITH RESPECT TO LIABILITY TO STAMP DUTYA djudication by Tax Commissioner with respect to LIABILITY of instrument to stampdutyAppeal to Supreme Court against assessment of Tax CommissionerPART VALLOWANCESP rocedure for obtaining allowance for spoiled stampsAllowance for misused stampsAllowance, how to be madeStamps not wanted may be repurchasedPART VIPROMISSORY NOTESF oreign notesUnstamped noteOffence: unstamped notePART VIICONVEYANCESC alculation of STAMP duty chargeable on conveyance on saleHow consideration on periodical payments to be chargedProvisions where property conveyed in consideration of debtSpecial considerations affecting amount of STAMP duty chargeable on conveyanceon saleCertain contracts to be chargeable with conveyance dutyTransfers in connection with divorce etc.

3 [repealed]Voluntary conveyance inter vivosPART VIIISETTLEMENTS, MUTUAL FUNDS AND UNIT TRUST SCHEMESDuty on settlement of money etcCalculation of duty where several instruments of settlementAdditions to settlements to be made by stamped instrumentNotification of issue of new sharesNotification of issue of new unitsEnforcement of sections 42, 43 and 44 STAMP duty on unit trustsExemption for pension trustsExemption for registered pension trust fundsExemption for local trusteesPART IXAFFIDAVIT OF VALUE OF DECEASED ESTATE21222324252627303233343536373838A3 8B394041424344454646A46B46C2 STAMP DUTIES ACT 1976 Supreme Court not to grant probate or letters of administration in absence ofaffidavit as to value of estateDesignation of primary family homestead by ownerDesignation of primary family homestead by estate representativeRecord of primary family homesteadsAppealsDeductionsProvision for return of duty overpaidProvision for payment of further dutySmall estatesLiability of estate representativePower of Registrar to require explanation and proof in support of valuation.

4 Andto reassess valuePART XINSURANCEDuty to issue receiptsExempt policies may cease to be exemptCompounding of duty on insurance receiptsRecords of insurance companies to be open to inspectionPART XIMISCELLANEOUS INSTRUMENTSC alculation of STAMP duty on securities for future advances of moneySpecial provisions as to leasesCertain mortgages of stock to be chargeable as agreementsAd valorem duty on exchange or partition of real propertyCalculation of STAMP duty on particular securitiesSpecial provision for companies without shares or capital stockDelivery in escrowAppraisementAnnuitiesPART XIIOFFENCES AND SUPPLEMENTARYF ailure to stampPunishment where none specifiedPenalty for unauthorized dealing in stampsFraud in relation to dutyInstitution and conduct of prosecutionsOffences by corporationsPART XIIIMISCELLANEOUSB ooks, etc.

5 In the custody of public officers may be inspected without feeComposition or consolidation of dutiesConditions and agreements as to STAMP duty void4747A47B47C47D4849505152535455565758 59606162636465666768697071727374753 STAMP DUTIES ACT 1976Ad valorem duty to be rounded up to nearest whole centRegulations by MinisterRepeals, savings etc [omitted]Commencement [omitted]SCHEDULEHead 1.[preamble and words of enactment omitted] part IInterpretationIn this Act, unless the context otherwise requires accident or health policy means a policy of insurance against the risk of thehappening of personal accident, whether fatal or not, disease or sickness, orany class of personal accident, disease or sickness; Bermuda property , in relation to an instrument, means property answering thedescription in section 47(2)(b), (3) and (4), but subject to the substitution, for the references there to the death of the deceased,of references to the date of execution of the instrument; andto the deletion of the words belonging to the deceased in section 47(2)(b)(ii); Bermudian status has the meaning which is assigned to that expression undersection 4 of the Bermuda Immigration and Protection Act 1956.

6 Bill of exchange shall have the meaning assigned to it in the Bills of Exchange Act1934 [title 17 item 21]; binder means a cover note or other instrument issued by or on behalf of an insurer to an insured person or some otherperson;confirming that a contract of insurance has been made between the insurerand the insured person; andintended to be followed and superseded, and in fact followed andsuperseded, by a policy of insurance; charter party means any instrument for the charter or hiring of any vessel oraircraft or of some principal part thereof, and any memorandum, letter or otherwriting (other than a bill of lading) between the master or owner of any vesselor aircraft and any other person for or relating to the freight or con-veyance ofany money, goods or effects on board any vessel or aircraft;767778791(a)(b)(a)(b)(c)4 STAMP DUTIES ACT 1976 cheque means a bill of exchange drawn on a bank or banker in Bermuda andpayable on demand; conveyance on sale includes every instrument, and every decree or order of anycourt, whereby any real or personal property or any estate or interest in anysuch property upon the sale thereof is transferred to or vested in a purchaser,or any other person on his behalf or by his direction.

7 Debenture includes a debenture, debenture stock and unsecured loan stock; deceased person means person dying after 31 March 1976 ; duly stamped as applied to an instrument means that the instrument bears astamp of not less than the proper amount and that such STAMP has been affixedor used in accordance with the law for the time being in force in Bermuda; duty means STAMP duty ; endorsement , in relation to a policy of insurance, means an instrument made by an insurer and attached, or intended to be attached, to the policy;andcalculated to modify the effect of the policy in some way; equitable mortgage, means an agreement or memorandum, under hand only,relating to the deposit of any title deeds or instruments constituting or beingevidence of the title to any property whatever, or creating a charge on suchproperty; estate representative means the executor, original or by representation, oradministrator for the time being of a deceased person; executed and execution used with reference to instruments not under seal meansigned and signature respectively; exempt policy means a policy of insurance written in Bermuda where the risk insured against issituated outside Bermuda including real property outside Bermuda;personal property ordinarily situated outside Bermuda includingvessels or aircraft registered in Bermuda if so situated.

8 The life or health of a person ordinarily resident outside Bermuda;a policy of reinsurance; exempt undertaking means an exempt undertaking for the purposes of section 9of the Miscellaneous Taxes Act 1976 [title 14 item 46]; foreign currency security means a security, not being a share, denominated in acurrency other than Bermuda area currency or on which capital moneys,dividends or interest are payable in a currency other than Bermuda area(a)(b)(a)(i)(ii)(iii)(b)5 STAMP DUTIES ACT 1976currency, or as respects which the holder has an option to require payment ofany capital moneys, dividends or interest in a currency other than Bermudaarea currency, and includes the documents commonly known as Eurobondsand analogous securities; Head means head of STAMP duty specified in the Schedule; instrument includes every written document; insurance includes assurance ; insurance premium receipt means a receipt for premiums payable under a policyof insurance and where an annuity is taxed as a policy of insurance includesa receipt for premiums payable under an agreement for the grant of an annuity; lease includes a sub-lease; legacy means every gift by will or testamentary instrument out of the estate of the testatoror of property of which he had power to dispose;the residue or any share of the residue of estate under a partial or totalintestacy;every gift having the effect of a donatio mortis causa; life policy means a policy of insurance upon any life or lives or upon any event orcontingency relating to or depending upon any life or lives except a policy ofinsurance against accident.

9 Marketable security means a security of such a description as to be capable ofbeing sold in the stock market in Bermuda and such other markets as may berecognized by the Bermuda Monetary Authority for the purposes of thisdefinition by notice published in the Gazette; material includes every sort of material upon which words or figures can beinscribed; Minister means the Minister of Finance; mortgage means a security by way of mortgage for the payment of any definiteand certain sum of money advanced or lent at the time, or previously due, orforborne to be paid, being payable, or for the repayment of money to bethereafter lent, advanced or paid, or which may become due upon an accountcurrent, together with any sum already advanced or due, or without, as thecase may be; and includes any conveyance of any property in trust to be sold or otherwise convertedinto money intended only as a security, and redeemable before the sale orother disposal thereof, either by express stipulation or otherwise;(a)(b)(c)(a)6 STAMP DUTIES ACT 1976any instrument in writing for defeating or making redeemable, orexplaining or qualifying any conveyance of property, apparently absolute,but intended only as a security.

10 Any agreement (other than an agreement chargeable with duty as anequitable mortgage), contract or bond accompanied with a deposit of titledeeds or with other instruments evidencing a right to property, for makinga mortgage or any other security or conveyance as aforesaid of any propertycomprised in the title deeds or other instruments or for pledging orcharging the same as a security; andany deed operating as a mortgage of any stock or marketable security; mutual fund shall have the meaning assigned to it in part XIIA of the CompaniesAct 1981 [title 17 item 5]; new share , in relation to a mutual fund, means a share whose issue causes thenumber of shares in issue immediately after the issue of the share to exceedthe largest number of shares that had ever at any one time been in issue beforethe share was issued; and new unit , in relation to a unit trust scheme, shallhave a corresponding meaning:Provided that for the purposes of this definition the issue of a new share or new unit to a person shall be deemed to includethe registration of his entitlement to the share or unit in a register of sharesor unit-holders respectively.