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Landlord avoiding stamp duty for tax evasion

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  1. #11

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    Dec 2009
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    Quote Originally Posted by CyberSec:
    my landlord is denying stamp duty for obvious tax evasion .
    Might because you live in an subdivided flat perhaps?

    Quote Originally Posted by CyberSec:
    I am moving to a subdivided apartment.
    shri, kimwy66 and Plutark like this.

  2. #12

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    1. General

    a. Tenancy agreement, agreement for tenancy and any other document of similar effect (including their duplicate) (hereinafter called “tenancy agreement”) are chargeable with stamp duty.

    b. The landlord, tenant and any other persons signing the tenancy agreement are liable for the payment of stamp duty.

    c. A tenancy agreement has to be stamped within 30 days from the date of its signing. Late stamping will incur a penalty of up to a maximum of 10 times of the original amount of stamp duty.

    2. Consequences of not stamping a tenancy agreement

    a. An unstamped tenancy agreement shall not be admitted as evidence in civil proceedings, which means a party cannot enforce an unstamped tenancy agreement even if the other party is in breach of the unstamped tenancy agreement.

    b. An unstamped agreement cannot be registered, filed or acted upon by any public officer.

    c. The Collector of Stamp Revenue may take civil action to claim any outstanding stamp duty from the landlord and the tenant who are responsible for stamping the tenancy agreement.
    From http://hkclic.org/en/topics/DIY_Residential_Tenancy_Agreement/Guidance/Stamping_Procedures/index.shtml]CLIC

    I'd take note of 1b, and subsequently 2c - noting that as a tenant you also have a responsibility to ensure that stamp duty is settled. 1c suggests you may have to pay up to 10x the amount if paid late.

    Also note 2a. Don't know to what extent this is true, but effectively implies your contract is worthless if not stamped.

    For your own sake I would get it stamped... and who cares if the landlord finds out? His tax evasion issues are his own problem, you don't want to be complicit.

    I also don't see what difference it makes whether you visit a mysterious Wanchai office or do it online. At the end of the day, once it's official, the government will know anyways and you'll have a stamped, documentary evidence of an active lease agreement in place.

    P.S. - don't forget the CR109, though this is more in the landlord's interest than yours.

  3. #13

    Join Date
    Sep 2018
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    26
    Quote Originally Posted by emx:
    Might because you live in an subdivided flat perhaps?
    Yes you are correct .

  4. #14

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    Sep 2018
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    Quote Originally Posted by tparker:
    From http://hkclic.org/en/topics/DIY_Resi...dex.shtml]CLIC

    I'd take note of 1b, and subsequently 2c - noting that as a tenant you also have a responsibility to ensure that stamp duty is settled. 1c suggests you may have to pay up to 10x the amount if paid late.

    Also note 2a. Don't know to what extent this is true, but effectively implies your contract is worthless if not stamped.

    For your own sake I would get it stamped... and who cares if the landlord finds out? His tax evasion issues are his own problem, you don't want to be complicit.

    I also don't see what difference it makes whether you visit a mysterious Wanchai office or do it online. At the end of the day, once it's official, the government will know anyways and you'll have a stamped, documentary evidence of an active lease agreement in place.

    P.S. - don't forget the CR109, though this is more in the landlord's interest than yours.
    Mysterious or not, that office location is on IRD website, so I think it's not shady stuff .

    I agree to you on the part that I don't have to be accomplice in his tax evasion .

    Thanks for the overall info, it means a lot

  5. #15

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    Apr 2016
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    Just wanted to give you the obvious warning about going behind your landlord's back, even if it is by doing the right thing. You might as well kiss your deposit goodbye and you should be be prepared to be evicted at any point. I assume the landlord will find out one way or another.

    Not sure if I would want to live in an apartment with all that hanging over my head.


  6. #16

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    Feb 2011
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    Quote Originally Posted by CyberSec:
    Landlord agree to give rent receipts. Please tell me if there is govt approved stuff for this. I think he will be giving me on plain white paper
    Depends on your company's policies and there are some particular requirements by IRD.

    There could be other reasons behind this, don't jump to conclusions. If you have such a lack of trust with the landlord, why are you living there?

    You can stamp the lease online and pay the fee. Read your contract on who pays the stamp duty. Deduct the landlords portion from next month's rent.

    Usually the agent stamps the agreement for you as a service.

  7. #17

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    Quote Originally Posted by CyberSec:
    Yes you are correct .
    Subdivided flat doesn't matter, you can still stamp the lease. The issue of subdivided is handled by another department.

  8. #18

    Join Date
    Sep 2018
    Posts
    26
    Quote Originally Posted by SannyJ:
    Just wanted to give you the obvious warning about going behind your landlord's back, even if it is by doing the right thing. You might as well kiss your deposit goodbye and you should be be prepared to be evicted at any point. I assume the landlord will find out one way or another.

    Not sure if I would want to live in an apartment with all that hanging over my head.
    That's the point, the landlord can't evict me without notice, and the landlord has to pay the deposit back . That's the point of making it legally binding by paying stamp duty.

    Please let me know if it isn't correct