Associated Motorways PLC v. Commissioner General of Inland Revenue – SC APPEAL NO. 40/2010-2010

The case between Associated Motorways PLC and the Commissioner General of Inland Revenue and the Hon. Attorney General addressed the issue of calculating stamp duty on bonus shares in light of conflicting statutory provisions and legislative amendments. It was determined that the par value printed on the share certificate is the definitive basis for duty computation, as established through an analysis of the Stamp Duty Act No. 43 of 1982, the Stamp Duty (Special Provisions) Act No. 12 of 2006, and related Gazette Notifications. The findings established that a strict literal interpretation of taxing statutes, favoring the clarity of legislative intent and the taxpayer, underpins this decision.

Tilakawardane, J. — It was determined that the stamp duty on bonus shares must be computed usi