Malaysia legislation

Section 63

of *STAMP ACT 1949

Section 63

Penalty for executing and signing documents not duly stamped

(a)

with intent to evade the payment of duty, draws, makes, executes or signs, otherwise than as a witness, any instrument whatsoever chargeable with duty without the same being duly stamped;

(b)

having drawn, made, executed or signed, otherwise than as a witness, any instrument whatsoever chargeable with duty without the same being duly stamped, fails, without lawful excuse, to procure the due stamping thereof within

Stamp 65

the time within which such instrument may be stamped without penalty under this Act; or

(c)

issues, endorses, transfers or presents for acceptance or payment or accepts, pays or receives payment of or in any manner negotiates any cheque or promissory note without the same being duly stamped;

shall be liable to a fine not exceeding one thousand five hundred ringgit.

(2)

When any penalty has been paid in respect of any instrument under section 43, 47A, 52 or 53, the amount of such penalty shall be allowed in reduction of the fine, if any, subsequently imposed under this section in respect of the same instrument upon the person who paid such penalty.

(3)

Subsection (1) shall not apply in respect of any instrument which has been indorsed as “stamped in due time” under section 40.

(4)

Paragraph (1)(b) shall not apply to the person mentioned in the second column hereunder in respect of the execution or signature of such of the instruments appearing in the First Schedule as are specified in the corresponding line of the first column—

Title of instrument as described in Schedule A

Persons not liable to penalty

Conveyance, assignment, transfer or absolute bill of sale

Vendor, assignor or transferor

Lease or agreement for lease

The lessor

Charge, agreement for a charge, bond, debenture, covenant and bill of sale by way of security

The chargee or obligee in the case of a transfer or reconveyance the transferor, assignor or disposer or the person giving up the security

(5)

For the purposes of this section, a cheque issued in pursuance of section 9 shall be deemed to be duly stamped.

66 Laws of Malaysia ACT 378

Penalty for failure to execute and transmit contract note