Failure by a notary to transfer property duties and taxes to the Commissioner for Revenue

Failure by a notary to transfer property duties and taxes to the Commissioner for Revenue

Published February 07, 2025

Recommendations not implemented  despite being tabled before the House of Representatives in November 2023

Background

Complaints were lodged against the CFR after a notary failed to transfer stamp duty and capital transfer taxes due on property deeds, despite having received payments from clients. Aggrieved complainants, who had fulfilled their financial obligations in good faith, were subsequently asked by the CFR to repay these dues. This practice was viewed as a violation of their rights, leading them to seek exemptions from repayment.

The Investigation

The investigation revealed that while the Public Registry could not register deeds without confirmation from the CFR that tax payments had been made, the CFR maintained it was not responsible for the notary`s failures. The Ombudsman was critical of this stance, stating that at law, notaries were public officers, and the State could not shift the burden on bona fide taxpayers.

The Recommendations

The Ombudsman recommended:

•    Prompt redress for affected parties to prevent double payments.
•    Legal and policy reforms to protect consumers from similar issues in the future.
•    Strengthening the Notarial Council’s resources to enhance oversight and prevent misconduct.

Escalation to Parliament

The Final Opinion of the Ombudsman with his Recommendations were submitted to the public service and to the Prime Minister in 2023.  As no conclusive action was taken to implement the recommendations, in late 2023 the Ombudsman used his discretion and by virtue of Art 22(4) of the Ombudsman Act send the Final Opinion to the Speaker of the House of Representatives who promptly tabled the matter before the House. 

Despite the fact that all the procedures contemplated by Chapter 385 were followed by the Ombudsman all the way to the House of Representatives, the non-implementation of the recommendations still stands.