Stamp duty on bank transactions
On what basis does government charge 25 cents stamp duty on a transfer from a customer’s savings account to his checking account? This is just an internal transfer.
Auntie’s answer: The reason seems to be “because they can” as a way to bring in money to the government, under the Stamp Duty Law (2013 Revision). Section 3(1) “Charge of stamp duty” says (the highlight is mine), “There shall be charged for the revenue of the Islands stamp duties upon the instruments specified in the Schedule at the rates therein prescribed.”
Found in that schedule it includes, “Bank receipts for withdrawal from funds on deposit.” The rate set for that transaction is 25 cents.
Whether this particular fee is fair is another thing entirely, but I would guess that those 25 cent charges add up over the year to a tidy sum for the government.
The law mentioned above can be found on the CNS Library
Send questions to auntie@caymannewsservice.com
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Category: Ask Auntie, Banking Questions
CNB doesn’t charge for online transfers from one bank account to the next so if I want to transfer money from my savings to my checking or vice versa there is no charge. Your bank is robbing you. It’s only withdrawals at the teller that is charged. I don’t pay for ATM withdrawals either.
A withdrawal is a like a contract. Hence the stamp duty. Years ago an actual stamp was stuck on the rear of each withdrawal voucher.
HOWEVER, if your bank is charging this tax when moving funds between your own accounts then I strongly suggest that you take that up with your bank.
If the funds are leaving your account (pay bill/cash/etc.) then the tax should be applied.
You can’t make this stuff up!! Bahahaha
Highway robbery by you government.
Someone should run an FOI on what the income is, specifically, on these transactions.
_Any_ debit will be charged the stamp duty, they’re treated the same regardless of what the transaction is: ATM cash withdrawal, debit card POS, online bill payment, international wire etc.