Martin Mansergh (Tipperary South, Fianna Fail)

These amendments relate to section 66, which brings forward the pay and file date in respect of gifts and inheritances from 31 October to 30 September. Section 46(2)(a) of the Capital Acquisitions Tax Consolidation Act 2003 provides that where the valuation date in respect of a gift or inheritance arises in the period from 1 January to 31 August in a year, tax must be paid and a return must be delivered on or before 31 October in that year.

Where the valuation date arises between 1 September and 31 December, tax must be paid and a return must be delivered on or before 31 October in the following year. Interest on outstanding tax runs from 1 November in the relevant year. In addition, there is a surcharge where a return is delivered after 31 October in the relevant year.

The effect of amendment No. 95, tabled by Deputy Noonan, would be to move the relevant date referred to in section 46(2)(a) of the Capital Acquisitions Tax Consolidation Act 2003 forward from 31 August to 30 June. In addition, the Deputy seeks consequential changes in regard to the provisions dealing with the date when interest on overdue tax becomes chargeable and the date when the surcharge for late returns arises.

As the amendments proposed by Deputy Noonan would reduce the yield from gift tax and inheritance tax by €30 million in 2011 because of the shortening of the relevant period referred to in section 46(2)(a) of the Capital Acquisitions Tax Consolidation Act 2003, I am not in a position to accept them, especially given the current state of the public finances.

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