This
court has now got to determine whether or not the Agreement is contra legem.
The
first and second respondents submitted that the Agreement of Sale that the
applicant sought to rely on was contra legem, and was ipso facto unenforceable.
They contended that it was entered into and signed solely for the purpose of
tax ...
This
court has now got to determine whether or not the Agreement is contra legem.
The
first and second respondents submitted that the Agreement of Sale that the
applicant sought to rely on was contra legem, and was ipso facto unenforceable.
They contended that it was entered into and signed solely for the purpose of
tax evasion. The respondents argued that what the parties had concluded was an
illegal contract which was void, or, at least, voidable at law.
The
respondents asserted that the Agreement was concluded for the sole purpose of
avoiding payment of the Capital Gains Tax and the Stamp Duty.
Indeed,
there can be no doubt, an agreement concluded for the sole purpose of avoiding
payment of the Capital Gains Tax, and the Stamp Duty, is illegal, and ipso
facto null and void ab initio. Section 44 of the of the Stamp Duties Act [Chapter
23:09] provides thus –
“44.
Agreement to evade duty shall be void
Every contract, agreement, or undertaking, made
for the purpose of evading, defeating, or frustrating, the requirements of this
Act as to the stamping of instruments, or with a view to preclude objection or
inquiry relative to the due stamping of any instrument, shall be void.”
