Measures intended to simplify the property tax mechanism not only failed to achieve the desired result but have created “grey areas and uncertainties”, the Notarial Council has complained.

In a statement, notaries noted that five months since these changes were announced in the Budget, they have not yet been in a position to give a proper reply to enquiries about final tax liability on any given property transfer.

“Meanwhile, notaries are still held liable for any miscalculation of tax due and are fined and penalised should they fail to include any one of the myriad declarations imposed by the new amendments on the deeds of transfer when computing tax,” the Notarial Council said.

It said the situation was made even worse when a further set of amendments affecting crucial technical issues were put forward at committee stage, on the eve of the promulgation of the Budget Implementation Bill.

“These changes affect the detailed workings of the property transfer tax, introducing further exceptions to the new eight per cent final rate and stipulate a retroactive cut-off date, thus rendering advice given by notaries during the past months incorrect,” the council said.

A ‘simplification process’ has now ended up in a complex set of different rates and exceptions

While lamenting the lack of consultation by the government on this issue, notaries said that numerous grey areas continued to emerge as these changes had not been properly identified and addressed before the Act was approved.

“What was initially intended as a ‘simplification process’ has now ended up in a complex set of different rates and exceptions, indicating that these amendments have been introduced without due consideration of the overall impact from a technical, legal and practical point of view.”

The council remarked that apart from fostering uncertainty the changes have undermined the whole point of the simplification exercise.