Michael Finneran (Roscommon-South Leitrim, Fianna Fail)

The Capital Acquisitions Tax Consolidation Act 2003 relates to the payment of gift tax and inheritance tax and the filing of returns in respect of these taxes. I understand this is the area of interest to the Senator. The amendment brings the date of the file and payment forward from 31 October to 30 September. Section 70, as passed by the Dáil, brings forward the pay and file date of the Capital Acquisitions Tax, CAT, in respect of gift tax and inheritance tax from 31 October to 30 September. The section also makes consequential changes to the provision relating to the date when interest becomes chargeable in respect of the late filing of a return. Section 46(2A) of the Capital Acquisitions Tax Consolidation Act 2003, inserted by the Finance Act 2010, provides that where the valuation date in respect of a gift or an inheritance arises in the period from 1 January to 31 August, tax must be paid and a return delivered on or before 31 October of that year. Where the valuation date arises in the period from 1 September to 31 December, tax must be paid and a return delivered on or before 31 October in the following year. Returns filed electronically benefit from the extended filing deadline of a further two weeks. The extension applies to more complex CAT cases since cases involving more complex CAT reliefs, such as benefit and farm relief, are statutorily required to be filed electronically. The Revenue electronic system provides calculation assistance such that taxpayers and their agents can be assured that the correct tax has been paid. For example, in the case of a valuation date that arises in August, the date due for filing a return and paying tax will not be 30 September. In practice, most returns will be delivered electronically under the Revenue's on-line system. This affords a solicitor acting for a taxpayer six or seven weeks to deliver a return and pay tax, even where a valuation date arises at the end of August. That is the position on the Senator's query.