Stamp duty on AIB Credit Card

Slugs

I was charged stamp duty on my Credit Card on April this year. I don't use my credit card anymore, so have decided to cancel it, but whatever. However, after just having spoken with customer services, I have just been informed that I am now liable for another payment of stamp duty. Apparently, my payment was for stamp duty from April 2012 - 2013, and I now have to pay April 2013 - 2014 in advance.

Is this legitimately the case, or am I being landed cancellation charges by AIB by way of "Stamp Duty"? If the practice is to pay stamp duty in advance, why is this not the common practice? Can someone advise me on this? Any sources or a person/body to talk with would be greatly appreciated.

Thanks in advance

p.s. if this is in wrong forum, mod please move

lau1247

Click on the link

Linky

chris85

Slugs wrote: »

I was charged stamp duty on my Credit Card on April this year. I don't use my credit card anymore, so have decided to cancel it, but whatever. However, after just having spoken with customer services, I have just been informed that I am now liable for another payment of stamp duty. Apparently, my payment was for stamp duty from April 2012 - 2013, and I now have to pay April 2013 - 2014 in advance.

Is this legitimately the case, or am I being landed cancellation charges by AIB by way of "Stamp Duty"? If the practice is to pay stamp duty in advance, why is this not the common practice? Can someone advise me on this? Any sources or a person/body to talk with would be greatly appreciated.

Thanks in advance

p.s. if this is in wrong forum, mod please move

You are saying the bank are trying to screw you over by giving you this charge yet you havent researched this at all. They are correct and they must do this as it is a government duty to which they collect. I am sure they would be happy to not have to charge their customers this but they must.

lau1247 wrote: »

Click on the link

Linky

Exactly.

Slugs

Not researched this? I JUST got off the phone after cancelling my card and being told during that call I was liable and have come on here looking for information on the subject, as a google search didn't give me any open information and users on this website are generally helpful and knowledgable in these subjects.

So no, it's not that I didn't research it, rather than I didn't even have time to do a thorough enquiry on the subject yet.

@ lau1247

Thank you for the post, though it states that if you don't use the card for a financial transaction in the financial year you don't have to pay the Stamp duty, this is only stated for the first year of the card. I've contacted the email address to find out if I am liable, given that I haven't conducted a financial transaction in the last 7 days using the card.

chris85

Slugs wrote: »

Not researched this? I JUST got off the phone after cancelling my card and being told during that call I was liable and have come on here looking for information on the subject, as a google search didn't give me any open information and users on this website are generally helpful and knowledgable in these subjects.

So no, it's not that I didn't research it, rather than I didn't even have time to do a thorough enquiry on the subject yet.

This question gets asked all the time, google stamp duty and the answer is there.

@ lau1247

Thank you for the post, though it states that if you don't use the card for a financial transaction in the financial year you don't have to pay the Stamp duty, this is only stated for the first year of the card. I've contacted the email address to find out if I am liable, given that I haven't conducted a financial transaction in the last 7 days using the card.

It states "If the credit card account is closed and has never been used, no stamp duty is payable provided that you close the account in the same period as it was opened."

If you opened and closed the account within the same period (April 1st to May 31st) and never used the card that would be the case.

sandin

you are not paying 2013/2014 "in advance" you are paying it now becasue you are closing the account and part of that closing is to ensure that you have paid the duty up to date.

If you had closed it on March 31st then you would only have been liable to April 1st 2013, but once you went into April, you went into a new year and therefore the duty is payable again at the end of that year, but if you clse the account it is payable upon closing.

Quite simple.

Slugs

Given I haven't used the card in the last 7 days, I'm enquiring whether I am liable for payment for this period.

The exact phrasing given by the AIB customer service employee was "in advance".

The argument "You had access to the service, so therefore you are liable" does not hold up. If that were indeed the case, then a cardholder not being liable for the first period stamp duty if they did not conduct a financial transaction using their card would not apply. That is what I am now enquiring, and have contacted the relevant financial body. I will update once I have heard something back from them.

listermint

Slugs wrote: »

Given I haven't used the card in the last 7 days, I'm enquiring whether I am liable for payment for this period.

The exact phrasing given by the AIB customer service employee was "in advance".

The argument "You had access to the service, so therefore you are liable" does not hold up. If that were indeed the case, then a cardholder not being liable for the first period stamp duty if they did not conduct a financial transaction using their card would not apply. That is what I am now enquiring, and have contacted the relevant financial body. I will update once I have heard something back from them.

You are liable.

There. Thats your answer nothing you can say will change that. Its a government tax not an AIB tax.

lau1247

Op, I'm not sure of the in and out but last time I enquired about closing credit card account, I was told to do it before April to ensure I don't get charge for the next year..

You could try to call Revenue from the link I posted earlier and ask.

If you're not able to get out of paying, the next best step is that you might as well keep using it till March next year (Just remember to close it before it goes to April).

phoenix999

sandin wrote: »

you are not paying 2013/2014 "in advance" you are paying it now becasue you are closing the account and part of that closing is to ensure that you have paid the duty up to date.

If you had closed it on March 31st then you would only have been liable to April 1st 2013, but once you went into April, you went into a new year and therefore the duty is payable again at the end of that year, but if you clse the account it is payable upon closing.

Quite simple.

I got caught out the same way. But Sandin is bang on with his comments.

Pablo Sanchez

As long as the credit card account is still in operation at the date in question you are liable. The fact that the card did not get used is not relevant.

daheff

I just read the below link...it states


http://www.revenue.ie/en/tax/stamp-duty/leaflets/stamp-duty-financial-cards.html#sectionb
Any other exemptions?

There are a number of exemptions to stamp duty in relation to ATM cards, debit cards and combined cards:

• If the card is not used during the year
• Where the card is issued in respect of a deposit account, the average daily positive balance of which does not exceed €12.70
• If the card has only been used to request a chequebook, a balance statement, to establish a customer identity or to establish a correct customer account number.

Based off this if you have not used the card yet this year then you would not be liable for the stamp duty on your credit card.

btw 30Eur for credit card is a disgrace considering atm is 2.5 Eur & debit card is another 2.5Eur.....just another money making scam for the government.

lynchie

daheff wrote: »

I just read the below link...it states


http://www.revenue.ie/en/tax/stamp-duty/leaflets/stamp-duty-financial-cards.html#sectionb
Any other exemptions?

There are a number of exemptions to stamp duty in relation to ATM cards, debit cards and combined cards:

• If the card is not used during the year
• Where the card is issued in respect of a deposit account, the average daily positive balance of which does not exceed €12.70
• If the card has only been used to request a chequebook, a balance statement, to establish a customer identity or to establish a correct customer account number.

Based off this if you have not used the card yet this year then you would not be liable for the stamp duty on your credit card.

btw 30Eur for credit card is a disgrace considering atm is 2.5 Eur & debit card is another 2.5Eur.....just another money making scam for the government.

Re-read it again! Those exemptions are under Section A which covers atm / debit cards. Section B covers credit / charge cards which doesnt have that exemption

murphaph

daheff wrote: »

I just read the below link...it states


http://www.revenue.ie/en/tax/stamp-duty/leaflets/stamp-duty-financial-cards.html#sectionb
Any other exemptions?

There are a number of exemptions to stamp duty in relation to ATM cards, debit cards and combined cards:

• If the card is not used during the year
• Where the card is issued in respect of a deposit account, the average daily positive balance of which does not exceed €12.70
• If the card has only been used to request a chequebook, a balance statement, to establish a customer identity or to establish a correct customer account number.

Based off this if you have not used the card yet this year then you would not be liable for the stamp duty on your credit card.

btw 30Eur for credit card is a disgrace considering atm is 2.5 Eur & debit card is another 2.5Eur.....just another money making scam for the government.

The rules are different for credit cards. The OP is liable.

daheff

lynchie wrote: »

Re-read it again! Those exemptions are under Section A which covers atm / debit cards. Section B covers credit / charge cards which doesnt have that exemption

my bad!!

sorry OP....I read combined cards as credit cards

Chrobri

I had some issues with this charge myself recently so decided to look into it, I spoke to the stamp duty officer in revenue. He informed me that this is a charge they place on banks and it's completely up to the bank to decide if they want to pass this charge onto the customer.