Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 152: To ask the Minister for Finance the forthcoming changes to the filing of capital acquisitions tax returns forms or other tax return forms; if CAT or any other tax are to be accepted solely online; if this is the case, the options that exist to facilitate the submission of such return forms by persons without access to or ease of use with the internet; and if he will make a statement on the matter. [22877/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

The Deputy will be aware that the Finance Act 2010 introduced significant changes in connection with the modernisation and simplification of the probate process and Capital Acquisitions Tax (CAT). One of the key elements of the change relates to the filing of CAT returns (Forms IT38). A new simplified paper form has been developed and may be used where the following conditions are met: No relief/exemption/credit is claimed, apart from small gift exemption; The benefit taken is an absolute interest without conditions or restrictions; The property included in the return was taken from only one disponer and is not part of a larger benefit.

Where any other relief/exemption/credit is being claimed, the return must be filed electronically through Revenue's On-line Service (ROS). The 2009 Report of the Commission on Taxation recommended that where data on "tax expenditures" is required to facilitate evaluation and cost-benefit analysis, taxpayers availing of the tax reliefs should be required to e-file their tax returns. The opportunity was taken to implement Commission's recommendation in relation to CAT as part of the modernisation and simplification changes. Reliefs from CAT can be very significant; for example, agricultural and business property reliefs can reduce the taxable values by 90% and dwelling house relief gives a full exemption. CAT is also one of the more complex taxes resulting in many calculations and potential adjustments. Online filing and calculation reduces the scope for error and miscalculation. The online form is relatively simple and quick to complete as only questions that are pertinent to the return are presented for answers. As information is entered, the system progressively customises the return screens that have to be completed, thus minimising the number of screens and options presented.

Returns through ROS may be made by the taxpayer or by a practitioner (for example, a solicitor or accountant) acting on his or her behalf. Where an individual taxpayer cannot use the simplified paper return form but has genuine capacity difficulties in relation to online filing and where there is no practitioner involved in the process, the individual can contact Revenue directly to discuss their individual circumstances and they will be facilitated as far as possible.