Interest is chargeable at a rate of:
10% per annum for the first month or part of a month
20% per annum thereafter upon the total amount of unpaid Stamp Duty.
Calculating Interest
Interest will be incurred from the 46th day after execution (the document being signed by all parties to it).
The ‘first month’ for calculation purposes commences on the 46th day, with the intial 45 day period being excluded from the calculation.
Interest is rounded to the nearest Cayman Islands Dollar.
A month is considered 30 calendar days.
The 366th day in leap years is excluded from the calculation.
Interest is not compounded.
Example
A Transfer of Land is executed on 1 January, with a Stamp Duty liability of CI $100,000.
If received by Lands & Survey by 15 February – No Interest payable
Reason: The document is received within the 45 day stamping period.
by 1 March – Interest of CI $411 is payable
Reason:
The document is 15 days overdue, at a rate of 10% per annum.
Calculation:
Daily rate @ 10% per annum: (CI $100,000 x 10%) / 365 days = CI $27.40 per day.
Total Interest:
(CI $27.40 x 15 days) = CI $411
on 19 April – Interest of CI $2,685 is payable
Reason: Document is 64 days overdue, at a rate of 10% per annum for the first 30 days – AND – at a rate of 20% per annum for the remainding 34 days.
Calculation: Daily rate @ 10% per annum: (CI $100,000 x 10%) / 365 days = CI $27.40 per day
Daily rate @ 20% per annum: (CI $100,000 x 20%) / 365 days = CI $54.80 per day
Total Interest:
(CI $27.40 x 30 days) = CI $822
(CI $54.80 x 34 days) = CI $1863.20
Rounded Total CI $2,685
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