```html IN THE GRAND COURT OF THE CAYMAN ISLANDS CIVIL DIVISION CAUSE NO：G 0232/2015 BETWEEN： PEGGY JOSIE BASDEO APPELLANT AND： THE HONOURABLE MINISTER OF FINANCE & ECONOMIC DEVELOPMENT, AS EX OFFICIO COMMISSIONER FOR THE COLLECTION OF STAMP DUTY RESPONDENT Appearances： Mrs. Basdeo，the Appellant，IP (Mr. Brett Basdeo，the Appellant's husband， attended and addressed the Court) Ms. Rachael Hoare with Ms. Tonicia Williams of the Attorney General's Chambers for the Respondent Before： Mr. Justice Alastair Malcolm (Actg.) Heard： 23rd February 2016 JUDGMENT This is an appeal brought by Peggy Basdeo (“Mrs. Basdeo”) against an adjudication dated 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th November 2015 against the 27th 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Mrs. Basdeo had had Caymanian status under s.20(1)(d) of the Immigration Law (2003 Revision) until reaching the age of 18 and by a letter dated 15th December 2005 the Chief Immigration Officer confirmed she continued to possess the right to be Caymanian beyond the age of 18.
As a result of her status, and the fact that this was her first purchase of land, Mrs. Basdeo was entitled to the reduction in Stamp Duty provided by paragraph 10(b)(ii) under the heading "Conveyance or Transfer" in the Schedule to the Stamp Duty Law (2013 Revision).
Paragraph 10 of the Conveyance or Transfer section of the Schedule provides: (10) Notwithstanding paragraph (2), where land (other than land included in the Table to paragraph (1)) is transferred to a Caymanian for the purpose of his first owner-occupied home - (a) there is no charge to duty on the instrument effecting such transfer if: (i) in the case of land with a building, the consideration is $300,000 or less; or (ii) in the case of land without a building, the consideration is $100,000 or less; and (b) duty at the rate of 2% of the consideration is chargeable on the instrument if: (i) in the case of land with a building, the consideration exceeds $300,000 but does not exceed $400,000; or (ii) in the case of land without a building, the consideration exceeds $100,000 but does not exceed $150,000; ... ``` This transcription accurately reflects the content of the provided image, using Markdown for headings and paragraph structure, HTML for tables (if any were present), and LaTeX for math (if any were present).
The Land had been marketed under the CIREBA Multiple Listing Service/System (MLS) and the agreed purchase price was CI$115,000. It follows that the consideration that was recited in the instrument effecting the conveyance was CI$115,000. Mrs. Basdeo, who with my leave, and the agreement of the Respondent, has been assisted by her husband, who is an attorney-at-law but did not appear in that capacity, asserts that the 2% should be levied on that figure and not on CI$120,000. The difference between the parties is therefore only CI$100 but there is an issue of principle that may well affect many other conveyances. How does the figure of CI$120,000 arise for the market value of the Land? To obtain the concessionary rate, first-time Caymanian property buyers have to provide, inter alia, an affidavit and a valuation by an approved valuer. In the pro forma affidavit at paragraph 3 is “The current market value is CI$ _____” and Mrs. Basdeo has inserted the figure of CI$120,000 into the blank which was the figure in the valuation report (which accompanied her application) provided by Ian Barnard, a Chartered Quantity Surveyor, on the 4th November 2015. Under the heading “Conveyance or Transfer” in the Schedule to the Stamp Duty Law (2013 Revision) paragraph 3 states: "For the purpose of this head of duty, the consideration shall be deemed to be the consideration recited in the instrument effecting the conveyance or transfer or the market value of the property conveyed or transferred, whichever is the higher..." The provisions in paragraph 3 are necessary to cover cases where there is a non-monetary consideration or transfer of property between family members at a reduced price. Judgment. G232/2015 Peggy Basdeo v The Hon. Minister of Finance as Ex Officio Commissioner for the Collection of Stamp Duty. Coram Malcolm J. (Actg.). Date: 8.3.16 Page 3 of 7
```html 1 9. Under the heading "Conveyance or Transfer of any immovable property" in the 2 Schedule to the Stamp Duty Law (2013 Revision) paragraph 4 states: 3 “(4) For the purposes of paragraph (3)，the market value of any property is the 4 estimated amount for which a property should exchange on the date of 5 valuation between a willing buyer and a willing seller in an arms-length 6 transaction after proper marketing wherein the parties had each acted 7 knowledgeably，prudently and without compulsion.” 8 9 10. A definition of market value provided by International Valuation Standards Council is： 10 11. “the amount for which a property should exchange on the date of valuation 12 between a willing buyer and a willing seller in an arms-length transaction after 13 proper marketing wherein the parties had each acted knowledgeably， 14 prudently， 15 and without compulsion” 16 11. A valuation report can only be an estimate of what the author of the report considers 17 the market value to be. In this case Mr. Barnard says： 18 19 GRAND COURT “In our opinion the market value of the subject parcel... is CI$120，000” (my 20 italics). 21 22 23 12. The best evidence of the market value of a property is the actual price agreed “between 24 25 “ket ing where es had edow length taft a w and a wil ach in an arran rudently， 26 27 elling sell man ein the part ms ledge ably an r proper 28 compulsion”. acted kn，Pis action Judgment. G232/2015 Peggy Basdeo v The Hon. Minister of Finance as Ex Officio Commissioner for the Collection of Stamp Duty. Coram Malcolm J. (Actg.). Date：8.3.16 Page 4 of 7 ```
The Cayman Islands have the benefit of the MLS for marketing property. The effect is that the property is available for all potential vendors to see and is not dependent on a particular Realtor’s marketing ability. Further, it has the benefit of being approved by the Courts as a method of reaching a true market value. In Scotia Bank (Cayman Islands) Ltd v Rankine 1 Henderson J said: "The best evidence of the true value of real estate is the reaction of potential purchasers and offers made by them, assuming that the property has been listed on the Multiple Listing Service with accurate particulars and advertised in a reasonable and competent fashion. Estimates in appraisals that are more optimistic than the highest offers received after extended exposure of the property to the marketplace, must be viewed as erroneous." Henderson J returned to the MLS in Scotia Bank & Trust (Cayman) Ltd v Ebanks & Gordon 2 in which he said: "The listing of real estate on the Multiple Listing Service has all the essential attributes of a reverse auction. The list price is set at a high level initially, then lowered progressively until a sale is made. The property is advertised widely and is available to any member of the public with an interest in purchasing. In substance, the sale of property through the Multiple Listing Service is a public auction." In Cayman National Building Society v Cranston 3 Quin J, having quoted Henderson J in Scotia Bank (Cayman Islands) Ltd v Rankine 4 said: "Accordingly, banks in the position of chargees understand that the most appropriate manner for them to demonstrate that they have fulfilled their duty to the chargor to obtain the best price reasonably obtainable for the property is by lying Multiple Lad advertising of it for a reasonable period of time." 1 [2004-2005 CILR Note 26] 2 2012 1 CILR 401 3 2011 1 CILR 67 4 [2004-2005 CILR Note 26] Judgment. G232/2015 Peggy Basdeo v The Hon. Minister of Finance as Ex Officio Commissioner for the Collection of Stamp Duty. Coram Malcolm J. (Actg.). Date: 8.3.16 Page 5 of 7
```html 1 17. There is no evidence in this case that the purchase by Mrs. Basdeo was anything other 2 than an arm's-length transaction after the property had been advertised on the MLS. 3 That being the position I prefer the evidence of the purchase price to that of the opinion 4 of Mr. Barnard, so in my judgment the true market value in this case is the agreed sale 5 price of CI$115，000. 6 7 18. I accept that the reason Mrs. Basdeo was charged the incorrect figure because she 8 inserted the figure of CI$120，000 in the form and provided a valuation in that sum. 9 With whom the blame lies for that， with her or with the system of application， is not 10 for me to decide. 11 12 19. Where an appeal is brought under s.10 to the Stamp Duty Law (2013 Revision) to the 13 Grand Court， the Court by s.12 may： 14 “(a) uphold the adjudication； 15 (b) order that duty be charged at a lower rate； 16 (c) order that the instrument is not subject to duty； or 17 (d) order that duty be charged at a higher rate， 18 and in the event of the order of the Grand Court falling under paragraph (b) ， (c) 19 or (d) the Grand Court shall cause the instrument to be endorsed with the 20 substance and date of the order and the seal of the Grand Court and the 21 Commissioner shall cause the instrument to be re-stamped or otherwise dealt with 22 in accordance with the order， against appropriate adjustment made in the charge 23 of duty to the appellant." 24 25 20. The Stamp Duty Law (2013 Revision) does not therefore permit me just to declare that 26 the duty should be charged on a figure of CI$115，000. 27 28 Hog reached the the same， na5，000 andowleration amare effective 29 Mat the cond CI$2400， 30 are mely CI$11asic as chargtheket value 31 rs. Basdeo (the true rate at which she was charged is 2.09%. Judgment. G232/2015 Peggy Basdeo v The Hon. Minister of Finance as Ex Officio Commissioner for the Collection of Stamp Duty. Coram Malcolm J. (Actg.). Date：8.3.16 Page 6 of 7 ```
```html 1 22. I therefore order under s.12(b) that the duty be paid at a lower rate of 2% on 2 CI$115,000 as against the previously charged 2.09%. 3 4 23. As both sides had waived their rights to costs, which, under the Stamp Duty (Appeals) 5 Rules, are limited to 2% of the disputed sum, CI$100, I make no order for costs under 6 s.13 of the Stamp Duty Law (2013 Revision). 7 8 24. Finally in accordance with s.12 of the Stamp Duty Law (2013 Revision) I direct that 9 the conveyance instrument be endorsed with the substance an date of this order and the 10 seal of the Grand Court. 11 12 13 Dated this the 8th day of March 2016 14 15 Mr. Justice Alastair Malcolm (Actg.) 16 Acting Judge of the Grand Court