Returns
Revenue Manual Probate Application
Introduction
This manual contains information on the Statement of Affairs (Probate) Form SA.2 and the new probate application process effective from 14 September 2020. The manual also sets out other procedural changes in connection with the administration of estates with effect from 14 September 2020.
The information in this manual is applicable to new applications for a Grant of Representation, otherwise known as a Grant of Probate or Letters of Administration, made on or after 14 September 2020, where the deceased person died on or after 5 December 2001.
References to the Probate Office in this manual include the District Probate Registries.
1. Changes to the Probate Application process
Finance Act 2019 (section 63) provided for the inclusion of section 48A to the Capital Acquisitions Tax Consolidation Act (CATCA) 2003. Section 48A provides for the electronic delivery of information to Revenue as part of the probate application process.
From 14 September 2020, intermediaries such as solicitors or agents, and personal applicants such as executors or administrators of an estate, wishing to obtain a Grant of Representation from the Probate Office are required to firstly deliver to Revenue a Form SA.2. Once the Form SA.2 is completed and delivered to Revenue, a Notice of Acknowledgement (Probate) will be generated.
The Notice of Acknowledgement must be presented to the Probate Office, together with any other documentation required, in order to proceed with the application for a Grant of Representation.
2. About the Statement of Affairs (Probate) Form SA.2
The Statement of Affairs (Probate) Form SA.2 is an account of a deceased person’s assets that must be completed and delivered to Revenue when applying for a Grant of Representation.
A Grant of Representation gives authority to the applicant (personal representative i.e. executor / administrator) to finalise the estate of the deceased.
The Form SA.2 combines the functions of the following paper-based forms in one online platform:
- Inland Revenue Affidavit (Form CA24)
- Corrective Affidavit (Form CA26)
- Request for a second or subsequent Grant of Representation (Form A3C)
- Request for Revenue Clearance IT8 (Form CA4).
The Form SA.2 can be completed electronically via either the Revenue Online Service (ROS) or myAccount.
2.1 Details to be included in the Statement of Affairs (Probate) Form SA.2
Section 48A (3) CATCA 2003 and the Capital Acquisitions Tax (Electronic Probate) Regulations 2020 set out the information to be included in the Form SA.2.
In summary the completed Form SA.2 should contain:
- The deceased person’s:
- name, last address and PPSN
- date of birth, date of death and place of death
- occupation, marital status
- residence position and domicile at the date of death
- surviving relatives and their relationship to the deceased
- A full account of the deceased person’s assets and liabilities at the date of death
- Information on assets passing outside of the will or intestacye.
- jointly held property
- property passing under a nomination, for example, a Credit Union account that the deceased nominated to be paid to a specified beneficiary in the event of their death
- The applicant’s:
- name, address and contact details
- occupation
- relationship to the deceased
- Beneficiaries’ details:
- PPSN, name, address and date of birth
- country of residence and country of domicile
- relationship to the deceased person
- details of assets passing to them, by way of will or intestacy, survivorship or nomination
- value of any prior aggregable benefits received since 5 December 1991
- Details of any discretionary trust created by the deceased during their lifetime or under their will
- An electronic copy of the:
- will
- codicils to the will
- any other supporting
3. Applying for a Grant of Representation (Probate)
From 14 September 2020, intermediaries such as solicitors or agents, and personal applicants such as executors or administrators of an estate, wishing to obtain a Grant of Representation from the Probate Office must follow a 2-step process:
Step 1 –
Deliver a Form SA.2 through either of Revenue’s online services:
- Revenue Online Service (ROS), My Services, (‘Gifts and Inheritance’) ‘Statement of Affairs (Probate) Form SA.2’
- myAccount, Tax Services, (‘Gifts and Inheritance’) ‘Statement of Affairs (Probate) Form SA.2’.
Step 2 –
Print the acknowledgement (Notice of Acknowledgement (Probate)) that is generated on successful submission of the Form SA.2. The acknowledgement contains certain key information from the Form SA.2 submitted to Revenue that the Probate Office requires. It should be noted that after 14 September 2020 the Probate Office will not accept applications for Grants of Representation that are not accompanied by a Notice of Acknowledgement (Probate).
The Notice of Acknowledgement must be presented to the Probate Office, together with any other documentation required, in order to proceed with the application for a Grant of Representation.
Information on completing the Form SA.2 is available at Guide to completing a Statement of Affairs (Probate) Form SA.2.
3.1. Exclusion from electronic delivery of the Statement of Affairs (Probate) Form SA.2
The quickest, easiest and most secure way to submit the Form SA.2 is through ROS or myAccount. However, in limited circumstances personal applicants can request to submit a paper Form SA.2 to Revenue where:
- There is insufficient internet access available to the applicant, or,
- The applicant is unable to deliver the Form 2 electronically due to the applicant’s:
- Age
- Mental capacity
- Physical
The facility to deliver the required information to Revenue in paper format applies to personal applicants only. Solicitors or other intermediaries acting in estates must complete the electronic Form SA.2.
Personal applicants will need to clearly set out the circumstances which prevent them from submitting the Form SA.2 electronically to Revenue on foot of which Revenue will determine if they are to be excluded from this requirement.
To apply for an exemption from filing the Form SA.2 electronically, applicants should contact the National Capital Acquisitions Tax (CAT) Unit.
3.2. Requirement to make a declaration attesting to the information delivered to Revenue and give an undertaking to submit an amended Statement of Affairs (Probate) Form SA.2
The Statement of Affairs (Probate) Form SA.2 is not a sworn document. However, Regulation 6 of the Capital Acquisitions Tax (Electronic Probate)
Regulations 2020, requires an applicant(s) to make a declaration through the online ‘sign and submit’ facility that the Form has been fully and correctly completed and all the particulars requested have been supplied. The applicant is also required to give an undertaking to submit an amended Statement of Affairs (Probate) Form SA.2 if at any time it appears that a material error or omission has been made.
Regulation 6 of the Capital Acquisitions Tax (Electronic Probate) Regulations 2020, also provides for a person acting under the authority of the applicant, i.e. a solicitor or other agent, to make the required declaration on behalf of their client. However, responsibility for the information supplied in the Form SA.2 rests with the personal representative.
4. Appointing an Irish resident agent where beneficiaries are non-resident
To address the potential risks relating to the payment of Inheritance Tax by non- resident beneficiaries, an Irish resident personal representative taking out a Grant of Probate or Letters of Administration is appointed as an “agent” of any non-resident beneficiary entitled to a benefit exceeding €20,000. This requirement is contained in sections 45AA and 48(10) of CATCA 2003. Under these provisions the agent will be responsible for the Inheritance Tax “pay and file” obligations of the non-resident beneficiary/beneficiaries.
However, the agent is entitled to retain funds sufficient to meet the Inheritance Tax liability from any amounts due to the beneficiary that are under the control of the agent. The liability of the agent is restricted to the extent of the funds available for distribution to the beneficiary.
Where there is no Irish resident personal representative, the personal representatives must appoint a solicitor holding a practicing certificate in the State, as agent, prior to seeking a Grant of Probate or Letters of Administration.
4.1 Steps that can be taken by a resident personal representative or a solicitor to ensure they are not personally liable to the Inheritance Tax of a non-resident beneficiary
As a result of discussions between the Law Society and Revenue, it is accepted that the resident personal representative or solicitor, under section 48(10), may write to Revenue indicating that he or she intends to distribute the assets taken by a non- resident beneficiary from the estate of the deceased within 30 days, where that personal representative or solicitor is satisfied that any relevant Inheritance Tax “pay and file” obligations have been met.
Revenue may indicate within the timeframe of 30 days that it is considering conducting a compliance intervention on the Capital Acquisitions Tax IT38 return or pursuing the non-filing of a return by that beneficiary. Where that arises, the resident personal representative or solicitor under section 48(10) should retain control of the assets relating to that beneficiary’s benefit (in so far as he or she has control). This is required until such time as either Revenue confirms in writing that there will be no intervention or the intervention, including any appeal process, is completed and any taxes which are assessable on either the resident Personal Representative or the solicitor under section 48(10), pursuant to section 45AA, of the CATCA 2003, are paid to Revenue.
If Revenue fails to respond within the timeframe of 30 days advising that the particular benefit may be subject to a compliance intervention, Revenue is not precluded from carrying out an intervention within the usual statutory time limits against the non-resident beneficiary. However where the non-resident beneficiary is selected for intervention, the non-resident beneficiary will be responsible for all aspects of the compliance intervention process under the Code of Practice for Revenue Audit and other Compliance Interventions.
In the event of an additional liability being identified where the resident personal representative or the solicitor under section 48(10) acted honestly and in good faith, and did not deliberately fail to comply with his or her obligations, then Revenue will only seek to enforce liability on the resident personal representative or the solicitor under section 48 (10) to the extent of any assets remaining under his or her control. Any excess liability will be sought by Revenue directly from the non-resident beneficiary and the excess liability will not be enforced against the resident personal representative or the solicitor under section 48(10).
A new online process, to manage these applications for clearance has been established. A solicitor or resident personal representative can now submit their intention to distribute to non-resident beneficiaries via MyEnquiries on ROS. When the request is submitted the applicant will receive an automated reply stating that if Revenue do not respond within 30 days, they can distribute the benefit to the non- resident beneficiaries. There will be no requirement for a further letter from Revenue to issue providing clearance to the applicant. The automated reply will be sufficient to allow the solicitor to distribute after the timeframe of 30 days has elapsed and no contact has been made by Revenue in relation to the application for clearance. Moving the applications online simplifies the process and provides clarity to solicitors and resident personal representatives on the beginning and end of the
30 day timeframe. A step by step guide on how to submit the application for clearance is available at Appendix 1.
5. Applying for Secondary or subsequent (De Bonis Non) Grants
A secondary or subsequent grant may be required in some circumstances, for example, where the personal representative dies before completing administration of the estate.
From 14 September 2020, an application for a secondary or subsequent (de bonis non) grant, is made through the online Form SA.2, whereby a simplified version of the form will be presented to the user on selecting that a secondary or subsequent grant is required. Once the application is successfully submitted a Notice of Acknowledgement (Probate) will be automatically generated by Revenue. The applicant must present this Notice to the Probate Office along with any other documents specified by the Probate Office to request a second or subsequent grant.
If an applicant is non e-enabled, they can write to the National Capital Acquisitions Tax (CAT) Unit to request a paper copy of the Form A3C (De Bonis Non Grant application form). Once completed an applicant will be required to return this to the National CAT Unit for processing. A Notice of Acknowledgement (Probate) will issue to the applicant.
The Notice of Acknowledgement must be presented to the Probate Office, together with any other documentation required, in order to proceed with the application for a Grant of Representation.
Further information on completing the online application for a secondary or subsequent (de bonis non) grant is available at Guide to completing a Statement of Affairs (Probate) Form SA.2.
6. Applying for IT8 Revenue Clearance
A letter of clearance (Form IT8), issued by Revenue, must be presented to Financial Institutions to facilitate the release of jointly held property to the surviving joint holder(s) of:
- Securities, monies held in a bank, post office, building society accounts, in the State which are held in the joint names of the deceased person and any other(s) who is not a surviving spouse or surviving civil partner of the deceased person
- and where the amount is:
- in excess of €50,000 where the deceased person died on or after 26 January 2001
- in excess of €6,350 where the deceased person died before 26 January
From 14 September 2020, requests for an IT8 Letter of Clearance can be made by applicants through the online Form SA.2. Where a joint holder of an account wishes to personally request IT8 Clearance, separate to the application for a Grant of Representation, they may do so by submitting a paper CA4 Form (Revenue Clearance application form) to the National Capital Acquisitions Tax (CAT) Unit.
Further information on requesting IT8 Clearance is available at Guide to completing a Statement of Affairs (Probate) Form SA.2.
7. Requirement to deliver an Amended Statement of Affairs (Probate) Form SA.2
If, after the delivery of a Form SA.2, a material error or omission is discovered, it is the responsibility of the applicant to submit an amended Statement. A solicitor can submit an amended Statement of Affairs (Probate) Form SA.2 on their behalf.
Examples of a material error or omission are:
- Property in the estate of the deceased person was omitted as its existence was unknown to the applicant or solicitor at the time of the delivery of the Form SA.2
- Property was included in the original Statement (Form 2) which did not form part of the estate of the deceased person.
It should be noted that events that happened after the date of death do not constitute a material error or omission. For example, fluctuations in property values after the date of death are not considered material errors.
7.1 Submitting an amended SA.2 Form
Where the original Form SA.2 was submitted online:
An amended Statement can be made by editing the original Form SA.2 online and re- submitting the Form.
A personal applicant or acting solicitor, can find their previously submitted statement under the ‘Manage your Applications’ tab on the ‘Statement of Affairs (Probate) Form SA.2’ home page on Revenue Online Service or myAccount.
Where the Applicant has filed a paper Form SA.2:
If an applicant is non e-enabled, they can write to the National Capital Acquisitions Tax (CAT) Unit to request a paper copy of the Amending Statement of Affairs (Probate) Form SA.2A. Once completed the applicant will be required to return this to the National CAT Unit for processing.
However, where the original application for probate was by submission of a paper Inland Revenue Affidavit (CA24), a paper CA26/CA26 (2001 edition) should be lodged with the Probate Office/Revenue Commissioners.
Further information on submitting an amended Statement of Affairs (Form SA.2)/Form CA26 is available at Correcting a Statement of Affairs (Probate) Form SA.2 or completing a Corrective Affidavit (Form CA26).
- Delivery of updated Notice of Acknowledgement (Probate) to the Probate Office
A new Notice of Acknowledgement (Probate) will be generated on submission of an amended Form SA.2. The updated notice will reflect the corrected information on the Statement.
If the Grant of Representation has not been issued at the time the changes are made, the Probate Office will require the updated Notice of Acknowledgement before the Grant can issue.
If the Grant of Representation has already been issued at the time the changes are made, the Probate Office will only require the updated Notice of Acknowledgement where there are changes to the assets originally declared.
Revenue Manual Self Assessment
Part 3 – The Self-Assessment Return (Form IT38)
See CAT Manual – Part 1 for an introduction to Capital Acquisitions Tax.
3.1 Introduction
A beneficiary is required to make a self-assessment Capital Acquisitions Tax (CAT) return, where benefits with a value of at least 80% (section 46(4) CATCA 2003) of the relevant group threshold have been received by the beneficiary. This 80% threshold value is calculated by aggregating the value of the current benefit with the value of benefits received by a beneficiary since 5 December 2001.
However, where a benefit comprises agricultural or relevant business property and agricultural or business relief applies, a return must be filed regardless of the taxable value of the agricultural property or business property and its proportion of the particular group threshold.1
The Self-Assessment Return is made on an IT38. As this is an annual return it can comprise more than one gift or inheritance.
For inheritances, based on an extract of beneficiary information from the Statement of Affairs (Probate) Form SA.2, Revenue’s systems will automatically issue a letter to beneficiaries, whom it understands may have a requirement to pay and file a CAT return in a tax year. If for some reason the valuation date does not arise in the anticipated year, the beneficiary simply notifies Revenue and Revenue will note their records accordingly.
3.1.1 Pay and File Date
The Finance Act 2010 introduced a fixed pay and file date for CAT of 31 October. All gifts and inheritances with a valuation date in the 12 month period ending on the previous 31 August, are required to be returned by 31 October of that year.
The Finance Act 2011, brought forward the pay and file date to 30 September in respect of the year of assessment 2011.
The Finance Act 2012 amended the pay and file date for CAT from 30 September to 31 October.
Example:
Valuation Date 21 February 2014: File return and pay tax by 31 October 2014. Valuation Date 6 November 2014: File return and pay tax by 31 October 2015.
Returns may be filed before the due date of 31 October in a year. However, where a return is filed without payment, any payment due must be made by 31 October.
3.1.2 Self-Assessment Return (Form IT38)
The return can be filed and tax paid through myAccount or ROS.
1 Requirement introduced by Finance Act 2020 (section 55), wef 19 December 2020.
An offline version of the IT38 can also be downloaded. When completed it can be uploaded and the tax paid.
The return may only be filed in paper form where:
- no relief/exemption/credit is claimed, apart from the small gift exemption;
- the interest taken is an absolute interest without conditions or restrictions and
- the property included in the return was taken from only one disponer and is not part of a larger benefit or series of benefits taken by the beneficiary on the same day.
The paper return requires the filer to compute the liability. If Revenue is satisfied based on the data in the return that the tax is correctly computed, an acknowledgement will issue.
However, if Revenue determines a higher liability (say due to the application of a late filing surcharge), an amended assessment will be made.
3.1.3 Surcharge for Late Filing
The Finance Act 2010 introduced a surcharge for those who do not comply with the filing deadline of 31 October. The surcharge is based on a percentage increase in the total tax payable for the year for which the return is late. The surcharge is subject to a grading by reference to the length of the delay, but there is an overall cap on the amount of the surcharge.
A 5% surcharge applies, subject to a maximum of €12,695, where the return is delivered within two months of the filing date (e.g. for the year of assessment 2016, any date between 1 November 2016 and 31 December 2016 inclusive).
A 10% surcharge, up to a maximum of €63,485, applies where the return is not delivered within two months of the filing date.
4.1 Clearance Letter (Form I.T.8)
This is a clearance letter issued in respect of bank deposit accounts held in joint names. It is a statutory requirement (Section 109 CATCA 2003) for access to bank accounts (except current accounts) having a balance at date of death greater than
€50,000, which are held in joint names (other than monies held in the joint names of the deceased and his or her spouse).
The clearance letter (Form I.T.8) may be obtained:
- by completing Form A.4 or
- in the course of completing Form 2, you will be presented with an option to request IT8 Clearance.
4.2 Registration of title based on possession – Section 62(2) CATCA 2003 (Form C.A.12)
If a person wishes to be registered as owner of property based on possession under the rules of the Land Registry, they are required to present a certificate issued by the Revenue Commissioners, to the effect that the property in question did not become charged to CAT during the relevant period or that any such charge shall be discharged to the satisfaction of the Commissioners.
A copy of the sworn Land Registry Form 5 and application Form C.A.12 should be submitted. If these forms are in order, then the Form C.A.12 can be certified.
There is also a Self-Certification Form I.T.76 that can be used by solicitors in situations where the property involved is under a certain value as set out in section 62.
4.3 Clearance Letter (Form I.T.10)
A Form I.T.10 was a clearance letter issued by Revenue to the personal representative in respect of bank accounts and stocks and shares, held in the sole name of the deceased.
Clearance letters were not certificates of discharge from CAT but merely letters to enable funds to be released from estates, without the necessity for a full Grant to be extracted.
There was no statutory basis for Revenue to issue such a clearance letter and so their issuance was discontinued in early 2010.
4.4 Abolition of the status of CAT as a charge on property that has been the subject of a gift or inheritance in the previous 12 years. Abolition of secondary accountability.
Prior to the enactment of the Finance Act 2010, Capital Acquisitions Tax, which was due and payable on a taxable gift, or inheritance, remained a charge on the property comprised in the gift or inheritance on the valuation date, unless Revenue issued a certificate of discharge (Form C.A.11), or 12 years had passed since the date of the gift or inheritance. The 2010 Finance Act abolished CAT as a charge on property received as a gift or inheritance and so eliminated the need to apply for certificates of discharge. It had also become common practice in land sales for a purchaser’s solicitor to require an unconditional certificate of discharge from a vendor’s solicitor. This is no longer required.
In order to deal with cases where certificates of discharge might be sought, because 12 years had not elapsed since the passing of this provision, the 2010 Finance Act abolished the 12-year charge for such gifts or inheritances, except in cases where Revenue had already instituted proceedings for the recovery of tax on foot of the charge.
Prior to the passing of the Act, CAT legislation extended secondary accountability to other parties (e.g. personal representatives in an inheritance situation or the donor in the case of a gift), where the beneficiary failed to pay the tax due and the person secondarily liable had control over the property passing. This secondary liability gave rise to requests for certificates of personal discharge (Form C.A.44), by those otherwise potentially liable in the event of default by the beneficiary.
The 2010 Finance Act abolished secondary accountability for inheritances and gifts.
In order to deal with legacy cases, secondary accountability was also abolished retrospectively, from the date of the passing of the 2010 Finance Act.
CAT Act
Capital Acquisitions Tax Consolidation Act 2003 (Number 1 of 2003)
PART 6
Returns and Assessments
45
Accountable persons.
(1)The person accountable for the payment of tax is—
(a)the donee or successor, and
(b)in the case referred to in section 32(2), the transferee referred to in that subsection, to the extent referred to in that subsection.
(2)The tax shall be recoverable from the person referred to in subsection (1) and the personal representative of such person, where that person has died, on whom the Commissioners have served notice in writing of the assessment of tax in accordance with section 49(4).
(3)The person referred to in subsection (1) and the personal representative of such person shall, for the purposes of paying the tax, or raising the amount of the tax when already paid, have power, whether the property is or is not vested in that person, to raise the amount of such tax and any expenses properly paid or incurred by that person in respect of raising the amount of such tax, by the sale or mortgage of, or a terminable charge on, that property or any part of that property.
(4)Every public officer having in such person’s custody—
(a)any rolls, books, records, papers, documents or proceedings, or
(b)any other data maintained in electronic, photographic or other process,
the inspection of which may tend to secure the tax, or to prove or lead to the discovery of any fraud or omission in relation to the tax, shall at all reasonable times permit any person authorised by the Commissioners to inspect those rolls, books, records, papers, documents or proceedings or that other data so maintained, and to copy by any means, take notes and extracts as that person may deem necessary.
Capital Acquisitions Tax Consolidation Act 2003 (Number 1 of 2003)
45A
Obligation to retain certain records.
(1)In this section—
“records” includes books, accounts, documents, and any other data maintained manually or by any electronic, photographic or other process, relating to—
(a)property, of any description, which under or in consequence of any disposition, a person becomes beneficially entitled in possession to, otherwise than for full consideration in money or money’s worth paid by that person,
(b)liabilities, costs and expenses properly payable out of that property,
(c)consideration given in good faith, in money or money’s worth, paid by a person for that property,
(d)a relief or an exemption claimed under any provision of this Act, and
(e)the valuation, on the valuation date or other date, as the case may be, of property the subject of the disposition.
(2)Every person who is an accountable person shall retain, or cause to be retained on his or her behalf, records of the type referred to in subsection (1) as are required to enable—
(i)a true return, additional return or statement to be made for the purposes of this Act, or
(ii)a claim to a relief or an exemption under any provision of this Act to be substantiated.
(3)Records required to be retained by virtue of this section shall be retained—
(a)in written form in an official language of the State, or
(b)subject to section 887(2) of the Taxes Consolidation Act 1997, by means of any electronic, photographic or other process.
(4)Records retained for the purposes of subsections (2) and (3) shall be retained by the person required to retain the records—
(a)where the requirements of section 46(2), requiring the delivery of a return on or before the dates mentioned in section 46(2A), are met, for the period of 6 years commencing on the valuation date of the gift or inheritance, or
(b)notwithstanding paragraph (a), where an accountable person fails to comply with the requirements of the provisions referred to in paragraph (a) in the manner so specified, or, where any person is required to deliver a return, additional return or statement under this Act other than the provisions referred to in paragraph (a), for the period of 6 years commencing on the date that the return, additional return or statement is received by the Commissioners.
(5)Any person who fails to comply with subsection (2), (3) or (4) in respect of the retention of any records relating to a gift or inheritance is liable to a penalty of €3,000; but a penalty shall not be imposed under this section on any person who is not liable to tax in respect of that gift or inheritance.
45AA
Liability of certain persons in respect of non-resident beneficiaries.
(1)Where—
(a)property passing under a deceased person’s will or intestacy or under Part IX or section 56 of the Succession Act 1965, or otherwise as a result of the death of that person, is taken by a person or persons who is or are not resident in the State,
(b)the personal representative or one or more of the personal representatives, where there is more than one personal representative, of the deceased person’s estate is or are resident in the State, and
(c)the person or persons referred to in paragraph (a) do not deliver a return and make a payment of tax in accordance with section 46(2),
then, the personal representative or one or more of the personal representatives, as the case may be shall be assessable and chargeable for the tax payable by the person or persons referred to in paragraph (a) to the same extent that those persons are chargeable to tax under section 11.
(1A)The solicitor referred to in section 48(10) shall be assessable and chargeable for the tax payable by the person or persons referred to in paragraph (a) of that subsection to the same extent that those persons are chargeable to tax under section 11.
(2)Subsection (1) and subsection (1A) shall not apply where a liability to inheritance tax arises by virtue of the fact that a person referred to in paragraph (a) of that subsection has not disclosed that he or she has received a taxable gift or a taxable inheritance prior to the taxable inheritance or taxable inheritances, as the case may be, consisting of property referred to in subsection (1)(a) and subsection (10)(a) of section 48 and the personal representative or solicitor referred to in section 48(10), as the case may be, has made reasonable enquiries regarding such gifts or inheritances and has acted in good faith.
(3)The personal representative or one or more of the personal representatives and the solicitor referred to in section 48(10) shall be liable only to the extent that that person or those persons, as the case may be, have control of the property referred to in subsection (1)(a) and subsection (10)(a) of section 48 or which that person or those persons would, but for that person’s or those persons’ own neglect or default, have control of such property.
(4)The persons referred to in subsection (3)—
(a)shall be entitled to retain so much of the property referred to in subsection (1)(a) and subsection (10)(a) of section 48 as may be required to pay the tax in respect of the person or persons referred to in paragraph (b) of that subsection and subsection (10)(a) of section 48, and
(b)shall have power, whether the property is or is not vested in that person, to raise the amount of such tax and any expenses properly paid or incurred by that person in respect of raising the amount of such tax, by the sale or mortgage of, or a terminable charge on, that property or any part of that property.
46
Delivery of returns.
[CATA 1976 s36]
(1)In this section—
(a)notwithstanding anything contained in sections 6 and 11 reference, other than in subsection (13) or (14), to a or a taxable gift includes a reference to an inheritance a taxable inheritance, as the case may be, and
(b)a reference to a donee includes a reference to a successor.
(2)Any person who is primarily accountable for the payment of tax by virtue of paragraph (c) of section 16, paragraph (c) of section 21, or who is accountable by virtue of section 45(1), shall—
(a)deliver to the Commissioners a full and true return of—
(i)every gift in respect of which that person is so accountable,
(ii)all the property comprised in such gift on the valuation date,
(iii)an estimate of the market value of such property on the valuation date, and
(iv)such particulars as may be relevant to the assessment of tax in respect of such gift;
(b)notwithstanding section 49, make on that return an assessment of such amount of tax as, to the best of that person’s knowledge, information and belief, ought to be charged, levied and paid on that valuation date, and
(c)duly pay the amount of such tax.
(2A)For the purposes of subsection (2) (other than in the case of an inheritance to which section 15 or 20 applies), where the relevant date occurs—
(a)in the period from 1 January to 31 August in any year, tax shall be paid and a return shall be delivered on or before 31 October in that year, and
(b)in the period from 1 September to 31 December in any year, tax shall be paid and a return shall be delivered on or before 31 October in the following year.
(2B)Subsection (2A) shall only apply as respects tax to be paid and returns to be delivered as respects valuation dates arising on or after such day as may be appointed by order of the Commissioners.
(2C)In the case of inheritances referred to in sections 15(1) and 20(1), returns shall be delivered and tax shall be paid within 4 months of the valuation date of such inheritances.
(3)Subsection (2)(c) (other than in respect of tax arising by reason of section 20) shall be complied with, where the tax due and payable is inheritance tax which is being paid wholly or partly by the transfer of securities to the Minister for Finance under section 56, by—
(a)making an application to the Commissioners to pay all or part of the tax by such transfer,
(b)completing the transfer of the securities to the Minister for Finance within such time, not being less than 30 days, as may be specified by the Commissioners by notice in writing, and
(c)duly paying the excess, if any, of the amount of tax referred to in subsection (2)(b) over the nominal face value of the securities tendered in payment of the tax in accordance with paragraph (a).
(3A)A return to be delivered in accordance with subsection (2A) shall only be delivered in accordance with the provisions of Chapter 6 of Part 38 of the Taxes Consolidation Act 1997 except where a relief or an exemption (other than the exemption referred to in section 69) is not being claimed by a person under this Act and the interest taken by a person in property is an absolute interest which is not subject to any conditions or restrictions.
(4)Subsection (2) applies to a charge for tax arising by reason of section 15 or 20 and to any other gift where—
(a)the aggregate of the taxable values of all taxable gifts taken by the donee on or after 5 December 1991, which have the same group threshold (as defined in Schedule 2) as that other gift, exceeds an amount which is 80 per cent of the threshold amount (as defined in Schedule 2) which applies in the computation of tax on that aggregate,
(aa)the gift comprises or includes—
(i)agricultural property within the meaning of section 89(1), or
(ii)relevant business property within the meaning of section 93(1),
or
(b)the donee or, in a case to which section 32(2) applies, the transferee (within the meaning of, and to the extent provided for by, that section) is required by notice in writing by the Commissioners to deliver a return,
and for the purposes of this subsection, a reference to a gift includes a reference to a part of a gift or to a part of a taxable gift, as the case may be.
(5)For the purposes of this section, the relevant date shall be—
(a)the valuation date, or
(b)where the donee or, in a case to which section 32(2) applies, the transferee (within the meaning of, and to the extent provided for by, that section) is required by notice in writing by the Commissioners to deliver a return, the date of the notice.
(7)(a)Any accountable person shall, if that person is so required by the Commissioners by notice in writing, deliver and verify to the Commissioners within such time, not being less than 30 days, as may be specified in the notice—
(i)a statement (where appropriate, on a form provided, or approved of, by them) of such particulars relating to any property, and
(ii)such evidence as they require,
as may, in their opinion, be relevant to the assessment of tax in respect of the gift.
(b)The Commissioners may authorise a person to inspect—
(i)any property comprised in a gift, or
(ii)any books, records, accounts or other documents, in whatever form they are stored, maintained or preserved, relating to any property as may in their opinion be relevant to the assessment of tax in respect of a gift,
and the person having the custody or possession of that property, or of those books, records, accounts or documents, shall permit the person so authorised to make that inspection at such reasonable times as the Commissioners consider necessary.
(7A)The making of enquiries by the Commissioners for the purposes of subsection (7)(a) or the authorising of inspections by the Commissioners under subsection (7)(b) in connection with or in relation to any relevant return (within the meaning given in section 49(6A)(b)) may not be initiated after the expiry of 4 years commencing on—
(a)subject to paragraphs (b) and (c), 31 December in the year in which the relevant return is received by the Commissioners,
(b)in the case of inheritances referred to in sections 15(1) and 20(1), the date on which the relevant return is received by the Commissioners, or
(c)if later than the date referred to in paragraph (a), where the matter of such conditions being satisfied is relevant to the assessment of the tax concerned, the latest date on which all of the conditions for a relief or exemption were required to be satisfied.
(7B)(a)The time limit referred to in subsection (7A) shall not apply where the Commissioners have reasonable grounds for believing that any form of fraud or neglect has been committed by or on behalf of any accountable person in connection with or in relation to any relevant return which is the subject of any enquiries or inspections.
(b)In this subsection “neglect” means negligence or a failure to deliver a correct relevant return (within the meaning given in section 49(6A)(b)).
(8)The Commissioners may by notice in writing require any accountable person to—
(a)deliver to them within such time, not being less than 30 days, as may be specified in the notice, an additional return, if it appears to the Commissioners that a return made by that accountable person is defective in a material respect by reason of anything contained in or omitted from it,
(b)notwithstanding section 49, make on that additional return an assessment of such amended amount of tax as, to the best of that person’s knowledge, information and belief, ought to be charged, levied and paid on the relevant gift, and
(c)duly pay the outstanding tax, if any, for which that person is accountable in respect of that gift,
and
(i)the requirements of subparagraphs (ii), (iii) and (iv) of subsection (2)(a) shall apply to such additional return required by virtue of paragraph (a), and
(ii)subsection (3) shall, with any necessary modifications, apply to any payment required by virtue of paragraph (c).
(9)Where any accountable person who has delivered a return or an additional return is aware or becomes aware at any time that the return or additional return is defective in a material respect by reason of anything contained in or omitted from it, that person shall, without application from the Commissioners and within 3 months of so becoming aware—
(a)deliver to them an additional return,
(b)notwithstanding section 49, make on that additional return an assessment of such amended amount of tax as, to the best of that person’s knowledge, information and belief, ought to be charged, levied and paid on the relevant gift, and
(c)duly pay the outstanding tax, if any, for which that person is accountable in respect of that gift,
and
(i)the requirements of subparagraphs (ii), (iii) and (iv) of subsection (2)(a) shall apply to such additional return required by virtue of paragraph (a), and
(ii)subsection (3) shall, with any necessary modifications, apply to any payment required by virtue of paragraph (c).
(10)Any amount of tax payable by an accountable person in respect of an assessment of tax made by that accountable person on a return delivered by that accountable person (other than an amount of that tax payable by the transfer of securities to the Minister for Finance under section 56) shall accompany the return and be paid to the Collector.
(11)Any assessment or payment of tax made under this section shall include interest on tax payable in accordance with section 51.
(12)The Commissioners may by notice in writing require any person to deliver to them within such time, not being less than 30 days, as may be specified in the notice, a full and true return showing details of every taxable gift (including the property comprised in such gift) taken by that person during the period specified in the notice or, as the case may be, indicating that that person has taken no taxable gift during that period.
(13)As respects a taxable gift to which this subsection applies, the Commissioners may by notice in writing require a disponer to deliver to them within such time, not being less than 30 days, as may be specified in the notice, a full and true return—
(a)of all the property comprised in such gift on the valuation date,
(b)of an estimate of the market value of such property on the valuation date, and
(c)of such particulars as may be relevant to the assessment of tax in respect of the gift.
(14)Subsection (13) applies to a taxable gift, in the case where—
(a)the taxable value of the taxable gift exceeds an amount which is 80 per cent of the group threshold (as defined in Schedule 2) which applies in relation to that gift for the purposes of the computation of the tax on that gift,
(b)the taxable value of the taxable gift taken by the donee from the disponer increases the total taxable value of all taxable gifts and taxable inheritances taken on or after 5 December 1991 by the donee from the disponer from an amount less than or equal to the amount specified in paragraph (a) to an amount which exceeds the amount so specified,
(c)the total taxable value of all taxable gifts and taxable inheritances taken on or after 5 December 1991 by the donee from the disponer exceeds the amount specified in paragraph (a) and the donee takes a further taxable gift from the disponer, or.
(d)the gift comprises or includes—
(i)agricultural property, within the meaning of section 89(1), or
(ii)relevant business property, within the meaning of section 93(1).
(15)Where, under or in consequence of any disposition made by a person who is resident or ordinarily resident in the State at the date of the disposition, property becomes subject to a discretionary trust, the disponer shall within 4 months of the date of the disposition deliver to the Commissioners a full and true return of—
(a)the terms of the discretionary trust,
(b)the names and addresses of the trustees and objects of the discretionary trust, and
(c)an estimate of the market value at the date of the disposition of the property becoming subject to the discretionary trust.
(16)For the purposes of subsection (15), a person who is not domiciled in the State at the date of the disposition is treated as not resident and not ordinarily resident in the State on that date unless—
(a)that person has been resident in the State for the 5 consecutive years of assessment immediately preceding the year of assessment in which that date falls, and
(b)that person is either resident or ordinarily resident in the State on that date.
46AExpression of doubt.
(1)Where an accountable person is in doubt as to the correct application of law to, or the treatment for tax purposes of, any matter to be included in a return or additional return to be delivered by such person under this Act, then that person may deliver the return or additional return to the best of that person’s belief but that person shall draw the Commissioners’ attention to the matter in question in the return or additional return by specifying the doubt and, if that person does so, that person shall be treated as making a full and true disclosure with regard to that matter.
(2)Subject to subsection (3), where a return or additional return, which includes an expression of doubt as to the correct application of law to, or the treatment for tax purposes of, any matter contained in the return or additional return, is delivered by an accountable person to the Commissioners in accordance with this section, then section 51(2) does not apply to any additional liability arising from a notification to that person by the Commissioners of the correct application of the law to, or the treatment for tax purposes of, the matter contained in the return or additional return the subject of the expression of doubt, on condition that such additional liability is accounted for and remitted to the Commissioners within 30 days of the date on which that notification is issued.
(3)Subsection (2) does not apply where the Commissioners do not accept as genuine an expression of doubt as to the correct application of law to, or the treatment for tax purposes of, any matter contained in the return or additional return and an expression of doubt shall not be accepted as genuine where the Commissioners are of the opinion that the person was acting with a view to the evasion or avoidance of tax.
(4)Where the Commissioners do not accept an expression of doubt as genuine they shall notify the accountable person accordingly within the period of 30 days after the date that the expression of doubt is received by the Commissioners, and the accountable person shall account for any tax, which was not correctly accounted for in the return or additional return referred to in subsection (1) and section 51(2) applies accordingly.
(5)An accountable person who is aggrieved by a decision of the Commissioners that that person’s expression of doubt is not genuine may appeal the decision to the Appeal Commissioners, in accordance with section 949I of the Taxes Consolidation Act 1997, within the period of 30 days after the date of the notice of that decision.
47
Signing of returns, etc.
[CATA 1976 s37]
(1)A return or an additional return required to be delivered under this Act shall be signed by the accountable person who delivers the return or the additional return and shall include a declaration by the person signing it that the return or additional return is, to the best of that person’s knowledge, information and belief, correct and complete.
(2)The Commissioners may require a return or an additional return to be made on oath.
(3)The Commissioners may, if they so think fit, accept a return or an additional return under this Act that has not been signed in accordance with this section and such return or additional return is deemed to be duly delivered to the Commissioners under this Act.
(4)
(a)A return or additional return delivered under this Act shall be made on a form provided, or approved of, by the Commissioners.
(b)An affidavit, additional affidavit, account or additional account, delivered under this Act, shall be made on a form provided, or approved of, by the Commissioners.
(5)Any oath or affidavit to be made for the purposes of this Act may be made—
(a)before the Commissioners,
(b)before any officer or person authorised by the Commissioners in that behalf,
(c)before any Commissioner for Oaths or any Peace Commissioner or Notary Public in the State, or
(d)at any place outside the State, before any person duly authorised to administer oaths in that place.
(6)For the purposes of this section, references to an oath shall be construed as including references to an affirmation and references in this section to the administration or making of an oath shall be construed accordingly.
48
Affidavits and accounts.
[CATA 1976 s38]
(3)Where the interest of the deceased person was a limited interest and that person died on or after the date of the passing of this Act, the trustee of the property in which the limited interest subsisted shall deliver an account which shall contain the following particulars—
(a)details of each inheritance arising on the death of the deceased person under the disposition under which the limited interest of the deceased person arose, including the name and address of each person taking such inheritance and that person’s relationship to the disponer, and
(b)such other particulars as the Commissioners may require for the purposes of this Act.
(10)Where—
(a)property passing under the deceased person’s will or intestacy or Part IX or section 56 of the Succession Act 1965, or otherwise as a result of the death of that person, is taken by a person or persons who is or are not resident in the State,
(b)the market value of the property referred to in paragraph (a) taken by any person referred to in that paragraph exceeds €20,000,
(c)the intended applicant or all the intended applicants, where there is more than one intended applicant, for probate or letters of administration is or are resident outside the State, and
(d)a return would be required to be delivered to the Commissioners in respect of such property in accordance with section 46(2) if the valuation date in respect of that property were the date of death of that person,
then, the intended applicant or the intended applicants, as the case may be, for probate or letters of administration shall appoint a solicitor who is lawfully practicing in the State to act in connection with the administration of the deceased person’s estate.
(11)The Probate Office shall not issue probate or letters of administration in respect of a deceased person’s estate in any case to which subsection (10) applies unless a solicitor lawfully practicing in the State has been appointed by the intended applicant or the intended applicants to act in connection with the administration of the deceased person’s estate.
48A
Information about a deceased person’s property.
(1)In this section—
“electronic means” has the meaning given to it by section 917EA of the Taxes Consolidation Act 1997;
“PPS number” in relation to an individual, means the individual’s personal public service number within the meaning of section 262 of the Social Welfare Consolidation Act 2005;
“probate” includes letters of administration.
(2)A person who intends to apply for probate in relation to the estate of a deceased person, where the deceased person was on the date of his or her death—
(a)resident and domiciled, or ordinarily resident and domiciled, in the State,
(b)resident and not domiciled, or ordinarily resident and not domiciled, in the State and who had been resident in the State for the 5 consecutive years of assessment immediately preceding the
year of assessment in which the date of death falls, or
(c)where neither paragraph (a) nor (b) applied, an individual who had an interest in property situate in the State,
shall submit information to the Commissioners which information shall be specified in regulations made by the Commissioners under subsection (3).
(3)The Commissioners shall make regulations to give effect to subsection (2), and those regulations may, in particular and without prejudice to the generality of that subsection, include provision for the information to be specified by the Commissioners which information may include—
(a)details of all property in respect of which probate is being sought and in respect of which the beneficial ownership is affected on the death of the deceased person by—
(i)that person’s will,
(ii)the rules for distribution on intestacy, or
(iii)Part IX, or section 56, of the Succession Act 1965 or under the analogous law of another territory,
and such details may include—
(I)the nature of the property,
(II)the nature of the deceased person’s interest in the property,
(III)the situation of the property,
(IV)the valuation of the property, and
(V)any debts or charges attaching to the property,
(b)in relation to the deceased person, his or her—
(i)name and address,
(ii)PPS number,
(iii)territory of residence, ordinary residence and domicile at the date of death,
(iv)debtors and the amount owed to them, and
(v)creditors and the amount owned by them,
(c)details of any property that was the subject matter of—
(i)a gift made by the deceased person where the date of the gift was within 2 years of that person’s death, or
(ii)a donatio mortis causa by the deceased person,
(d)details of any discretionary trust created by the deceased person whether created before his or her death or under his or her will,
(e)details of the inheritances arising under—
(i)the deceased person’s will,
(ii)the rules for distribution on intestacy, or
(iii)Part IX, or section 56, of the Succession Act 1965 or under the analogous law of another territory,
(f)in relation to each person who takes an inheritance on the death of the deceased person, the person’s —
(i)name and address,
(ii)PPS number,
(iii)territory of residence, ordinary residence and domicile at the date of the death, and
(iv)relationship to the deceased person,
and
(g)in relation to the person who intends to apply for probate—
(i)that person’s name and address,
(ii)that person’s relationship to the deceased person,
(iii)the capacity in which the person intends to apply for probate, and
(iv)the form of the declaration to be made by that person in respect of the information submitted to the Commissioners under the regulations.
(4)Regulations made under subsection (3) may also provide for—
(a)the supporting documentation to be provided including a copy of the will, and codicil, if any,
(b)the submission of information by electronic means,
(c)the information to be exchanged between the Commissioners and the Probate Office, and
(d)such incidental, supplemental or consequential provisions as appear to the Commissioners to be necessary or expedient to give effect to subsection (2).
(5)Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.
49
Assessment of tax.
[CATA 1976 s39; FA 1989 s75]
(1)Subject to section 46, assessments of tax under this Act shall be made by the Commissioners.
(1A)The Commissioners may issue an assessment to a person referred to in section 45(1) where a return has not been delivered to them under section 46(2).
(2)If at any time it appears that for any reason an assessment was incorrect, the Commissioners may make a correcting assessment, which shall be substituted for the first-mentioned assessment.
(3)If at any time it appears that for any reason too little tax was assessed, the Commissioners may make an additional assessment.
(4)The Commissioners may serve notice in writing of the assessment of tax on any accountable person or, at the request of an accountable person, on that accountable person’s agent, or on the personal representative of an accountable person if that person is dead.
(5)Where the place of residence of the accountable person or of that accountable person’s personal representative is not known to the Commissioners they may publish in Iris Oifigiúil a notice of the making of the assessment with such particulars of that assessment as they shall think proper and on the publication of the notice in Iris Oifigiúil the accountable person or that accountable person’s personal representative, as the case may be, is deemed to have been served with the notice of the assessment on the date of such publication.
(6)Any assessment, correcting assessment or additional assessment under this section may be made by the Commissioners from any return or additional return delivered under section 46 or from any other information in the possession of the Commissioners or from any one or more of these sources.
(6A)(a)For the purposes of subsection (6) an assessment, a correcting assessment or an additional assess ent made in connection with, or in relation to, a relevant return may not be made after the expiry of 4 years from—
(i)31 December in the year in which the relevant return is received by the Commissioners, or
(ii)in the case of inheritances referred to in sections 15(1) and 20(1), the date on which the relevant return is received by the Commissioners.
(b)In this subsection “relevant return” means a return within the meaning of a return or an additional return within the meaning of section 46.
(6B)Notwithstanding subsection (6A), an assessment, a correcting assessment or an additional assessment may be made by the Commissioners at any time—
(a)where they have reasonable grounds for believing that any form of fraud or neglect (within the meaning given in section 46(7B)(b)) has been committed by, or on behalf of any accountable person in connection with, or in relation to, any relevant return (within the meaning given in subsection (6A)) which is the subject of assessment, or
(b)to take account of any fact or matter arising by reason of an event occurring after a relevant return is received by the Commissioners.
(7)The Commissioners, in making any assessment, correcting assessment or additional assessment, otherwise than from a return or an additional return which is satisfactory to them, shall make an assessment of such amount of tax as, to the best of their knowledge, information (including information received from a member of the Garda Síochána) and belief, ought to be charged, levied and paid.
(8)Nothing in section 46 shall preclude the Commissioners from making an assessment of tax, a correcting assessment of tax, or an additional assessment of tax, under the provisions of this section.
Capital Acquisitions Tax Consolidation Act 2003 (Number 1 of 2003)
50
Computation of tax.
[CATA 1976 s40 (part)]
Subject to sections 18 and 23, the amount of tax payable shall be computed in accordance with Schedule 2.
Payment and Recovery of Tax, Interest and Penalties
51
Payment of tax and interest on tax.
[CATA 1976 s41(1), (2), (2A) and (3) to (6) and (8); FA 1989 s76(2)]
(1)Tax shall be due and payable on the valuation date.
(1A)(a)Simple interest is payable, without deduction of income tax, on the tax arising by reason of section 15(1) or 20(1) from the valuation date to the date of payment of that tax, and the amount of that interest shall be determined in accordance with paragraph (c) of subsection (2).
(b)Interest payable in accordance with paragraph (a) is chargeable and recoverable in the same manner as if it were part of the tax.
(2)
(a)Simple interest is payable, without deduction of income tax, on the tax where the relevant date (within the meaning of section 46(5)) occurs—
(i)in the period from 1 January to 31 August in any year, from 1 November in that year to the date of payment of that tax, and
(ii)in the period 1 September to 31 December in any year, from 1 November in the following year to the date of payment of that tax,
and the amount of that interest shall be determined in accordance with paragraph (c).
(b)Interest payable in accordance with paragraph (a) is chargeable and recoverable in the same manner as if it were part of the tax.
(c)(i)In this paragraph—
“period of delay”, in relation to any tax due and payable, means the period during which that tax remains unpaid;
“relevant period”, in relation to a period of delay which falls into more than one of the periods specified in column (1) of Part 1 of the Table, means any part of the period of delay which falls into, or is the same as, a period specified in that column;
“Table” means the Table to this subsection.
(ii)The interest payable in accordance with paragraph (a) of this subsection and paragraph (a) of subsection (1A), shall be—
(I)where one of the periods specified in column (1) of Part 1 of the Table includes or is the same as the period of delay, the amount determined by the formula—
T × D × P
where—
Tis the tax due and payable which remains unpaid,
Dis the number of days (including part of a day) forming the period of delay, and
Pis the appropriate percentage in column (2) of the Table opposite the period specified in column (1) of Part 1 of the Table within which the period of delay falls or which is the same as the period of delay,
and
(II)where a continuous period formed by 2 or more of the periods specified in column (1) of Part 1 of the Table, but not (as in clause (I)) only one such period, includes or is the same as the period of delay, the aggregate of the amounts due in respect of each relevant period which forms part of the period of delay, and the amount due in respect of each such relevant period shall be determined by the formula—
T × D × P
where—
Tis the tax due and payable which remains unpaid,
Dis the number of days (including part of a day) forming the relevant period, and
Pis the appropriate percentage in column (2) of Part 1 of the Table opposite the period specified in column (1) of Part 1 of the Table into which the relevant period falls or which is the same as the relevant period.
Table
Part 1
(Period)
(Percentage)
(1)
(2)
From 31 March 1976 to 31 July 1978
0.0492%
From 1 August 1978 to 31 March 1998
0.0410%
From 1 April 1998 to 31 March 2005
0.0322%
From 1 April 2005 to 30 June 2009
0.0273%
From 1 July 2009 to the date of payment
0.0219%
Part 2
(1)
(2)
From 8 February 1995 to 31 March 1998
0.0307%
From 1 April 1998 to 31 March 2005
0.0241%
From 1 April 2005 to 30 June 2009
0.0204%
From 1 July 2009 to the date of payment
0.0164%
(2A)For the purposes of calculating interest on the whole or the part of the tax to which section 55 applies, subsection (2) shall apply as if references in that subsection to Part 1 of the Table were references to Part 2 of the Table.
(3)Notwithstanding subsection (2), interest is not payable on the tax—
(a)to the extent to which section 89(4)(a) applies, for the duration of the period from the valuation date to the date the agricultural value ceases to be applicable,
(b)to the extent to which section 77(3) and (4) applies, for the duration of the period from the valuation date to the date the exemption ceases to apply,
(c)to the extent to which section 101(2) applies, for the duration of the period from the valuation date to the date the reduction which would otherwise fall to be made under section 92 ceases to be applicable,
(d)to the extent to which section 78(6) applies, for the duration of the period from the valuation date to the date the exemption ceases to apply,
(e)to the extent to which section 86(6) or (7) applies, for the duration of the period from the valuation date to the date the exemption ceases to apply,
(f)to the extent to which section 102A(2) applies, for the duration of the period from the valuation date to the date the development land is disposed of.
(4)Where tax and interest, if any, on that tax is paid within 30 days of an assessment of tax made by the Commissioners in accordance with section 49, interest shall not run on that tax for the period of 30 days from the date of that assessment or for any part of that period.
(5)A payment of tax by an accountable person is treated as a payment on account of tax for the purposes of this section, notwithstanding that the payment may be conditional or that the assessment of tax is incorrect.
(6)Subject to subsections (2), (4) and (5), payments on account may be made at any time, and when a payment on account is made, interest is not chargeable in respect of any period subsequent to the date of such payment on so much of the payment on account as is to be applied in discharge of the tax.
(7)In the case of a gift which becomes an inheritance by reason of its being taken under a disposition where the date of the disposition is within 2 years prior to the death of the disponer, this section has effect as if the references to the valuation date in subsections (1), (2), (3) and (4) were references to the date of death of the disponer.
(8)Where the value of a limited interest is to be ascertained in accordance with rule 8 of Schedule 1 as if it were a series of absolute interests, this section has effect, in relation to each of those absolute interests, as if the references to the valuation date in subsections (1), (2), (3) and (4) were references to the date of the taking of that absolute interest.
52
Set-off of gift tax paid in respect of an inheritance.
[CATA 1976 s42]
Where an amount has been paid in respect of gift tax (or interest on such gift tax) on a gift which, by reason of the death of the disponer within 2 years after the date of the disposition under which the gift was taken, becomes an inheritance in respect of which inheritance tax is payable, the amount so paid is treated as a payment on account of the inheritance tax.
53
Surcharge for undervaluation of property.
[FA 1989 s79]
(1)In this section “ascertained value” means the market value subject to the right of appeal under section 66 or section 67.
(2)Where—
(a)an accountable person delivers a return, and
(b)the estimate of the market value of any asset comprised in a gift or inheritance and included in that return, when expressed as a percentage of the ascertained value of that asset, is within any of the percentages specified in column (1) of the Table to this section,
then the amount of tax attributable to the property which is that asset is increased by a sum (in this section referred to as the “surcharge”) equal to the corresponding percentage, set out in column (2) of that Table opposite the relevant percentage in column (1), of that amount of tax.
(3)Interest is payable under section 51 on any surcharge as if the surcharge were tax, and the surcharge and any interest on that surcharge is chargeable and recoverable as if the surcharge and that interest were part of the tax.
(4)Any person aggrieved by the imposition on that person of a surcharge under this section in respect of any asset may appeal to the Appeal Commissioners, in accordance with section 949I of the Taxes Consolidation Act 1997, within the period of 30 days after the date of the notice of the amount of that surcharge, against the imposition of such surcharge on the grounds that, having regard to all the circumstances, there were sufficient grounds on which that person might reasonably have based that person’s estimate of the market value of the asset.
TABLE
Estimate of the market value of the asset in the return, expressed as a percentage of the ascertained value of that asset
Surcharge
(1)
(2)
Equal to or greater than 0 per cent but less than 40 per cent
30 per cent
Equal to or greater than 40 per cent but less than 50 per cent
20 per cent
Equal to or greater than 50 per cent but less than 67 per cent
10 per cent
53A
Surcharge for late returns.
(1)In this section “specified return date” means—
(a)in relation to a valuation date occurring in the period 1 January to 31 August in any year, 31 October in that year, and
(b)in relation to a valuation date occurring in the period 1 September to 31 December in any year, 31 October in the following year,
(c)in the case of an inheritance referred to in section 15(1) or 20(1), the last day of the period of 4 months referred to in section 46(2C).
(2)For the purposes of this section—
(a)where a person fraudulently or negligently delivers an incorrect return on or before the specified return date, that person shall be deemed to have failed to have delivered the return on or before that date unless the error in the return is remedied on or before that date,
(b)where a person delivers an incorrect return on or before the specified return date, but does so neither fraudulently nor negligently and it comes to that person’s notice (or, if he or she has died, to the notice of his or her personal representative) that it is incorrect, the person shall be deemed to have failed to have delivered the return on or before the specified return date unless the error in the return is remedied without unreasonable delay, and
(c)where a person delivers a return on or before the specified return date, but the Commissioners, by reason of being dissatisfied with any information contained in the return, require that person, by notice in writing served on him or her under section 46(7), to deliver such statement or evidence as may be required by them, the person shall be deemed not to have delivered the return on or before the specified return date unless the person delivers the statement or evidence within the time specified in the notice.
(3)Where a person fails to deliver a return on or before the specified return date, any amount of tax which would have been payable if such a return had been delivered shall be increased by an amount (in this section referred to as “the surcharge”) equal to—
(a)5 per cent of the amount of tax, subject to a maximum increased amount of €12,695, where the return is delivered before the expiry of 2 months from the specified return date, and
(b)10 per cent of the amount of tax, subject to a maximum increased amount of €63,485, where the return is not delivered before the expiry of 2 months from the specified return date.
(4)If the assessment to tax made on a return is not the amount of tax as increased in accordance with subsection (3), then, the provisions of this Act and Part 42 of the Taxes Consolidation Act 1997 shall apply as if the tax contained in the assessment were the amount of tax as so increased.
54
Payment of tax by instalments.
[CATA 1976 s43]
(1)Subject to the payment of interest in accordance with section 51 and to the provisions of this section, the the tax due and payable (other than tax arising by reason of section 20) in respect of a taxable gift or a taxable inheritance may, at the option of the person delivering the return or additional return, be paid by monthly instalments over a period not exceeding 5 years in such manner as may be determined by the Commissioners, the first of which is due on 31 October immediately following the valuation date and the interest on the unpaid tax shall be added to each instalment and shall be paid at the same time as such instalment.
(2)An instalment not due may be paid at any time before it is due.
(3)In any case where and to the extent that the property of which the taxable gift or taxable inheritance consists is sold or compulsorily acquired, all unpaid instalments shall, unless the interest of the donee or successor is a limited interest, be paid on completion of the sale or compulsory acquisition and, if not so paid, shall be tax in arrear.
(4)This section shall not apply in any case where and to the extent to which a taxable gift or a taxable inheritance consists of personal property in which the donee, or the successor, or the transferee referred to in section 32(2), as the case may be, takes an absolute interest.
(5)In any case where the interest taken by a donee or a successor is an interest limited to cease on that person’s death, and that person’s death occurs before all the instalments of the tax in respect of the taxable gift or taxable inheritance would have fallen due if such tax were being paid by instalments, any instalment of such tax which would not have fallen due prior to the date of the death of that donee or successor shall cease to be payable, and the payment, if made, of any such last-mentioned instalment is treated as an over-payment of tax for the purposes of section 57.
55
Payment of tax on certain assets by instalments.
[FA 1995 s164]
(1)In this section—
“agricultural property” has the meaning assigned to it by section 89 ;
“relevant business property” has the same meaning as it has in section 93, other than shares in or securities of a company (being shares or securities quoted on a recognised stock exchange) and without regard to sections 94 and 100(4).
(2)Where the whole or part of the tax which is due and payable in respect of a taxable gift or taxable inheritance is attributable to either or both agricultural property and relevant business property—
(a)section 54 shall apply to that whole or part of the tax notwithstanding subsection (3) or (4) of that section but where all or any part of that agricultural property or relevant business property, or any property which directly or indirectly replaces such property, is sold or compulsorily acquired and, by virtue of subsection (4) of section 89 or section 101, that sale or compulsory acquisition causes the taxable value of such a taxable gift or taxable inheritance to be increased, or would cause such increase if subsection (2) of section 89 or section 92 applied, all unpaid instalments referable to the property sold or compulsorily acquired shall, unless the interest of the donee or successor is a limited interest, be paid on completion of that sale or compulsory acquisition and, if not so paid, shall be tax in arrear, and
(b)notwithstanding subsection (2) of section 51, the interest payable on that whole or part of the tax shall be determined—
(i)in accordance with that subsection as modified by subsection (2A) of that section, or
(ii)in such other manner as may be prescribed by the Minister for Finance by regulations,
instead of in accordance with subsection (2) of that section, and that section shall apply as regards that whole or part of the tax as if the interest so payable were determined under that section, but the interest payable on any overdue instalment of that whole or part of that tax, or on such part of the tax as would represent any such overdue instalment if that whole or part of the tax were being paid by instalments, shall continue to be determined in accordance with subsection (2) of section 51.
(3)For the purposes of this section reference to an overdue instalment in paragraph (b) of subsection (2) is a reference to an instalment which is overdue for the purposes of section 54 (as it applies to this section) or for the purposes of paragraph (a) of subsection (2).
(4)For the purposes of this section the value of a business or of an interest in a business shall be taken to be its net value ascertained in accordance with section 98.
(5)This section shall not apply in relation to an inheritance taken by a discretionary trust by virtue of section 15(1) or section 20(1).
(6)Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done under that regulation.
56
Payment of inheritance tax by transfer of securities.
[CATA 1976 s45]
Section 22 of the Finance Act 1954 (which relates to the payment of death duties by the transfer of securities to the Minister for Finance) and the regulations made under that Act shall apply, with any necessary modifications, to the payment of inheritance tax (other than tax arising by reason of section 20) by the transfer of securities to the Minister for Finance, as they apply to the payment of death duties by the transfer of securities to the Minister for Finance.