Written answers

Tuesday, 12 November 2013

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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95. To ask the Minister for Finance if he will set out the different payment options open to a person to settle their capital acquisitions tax liability with the Revenue Commissioners; and if he will make a statement on the matter. [48032/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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Capital Acquisitions Tax (CAT) is the overall title for both Gift and Inheritance Tax. I am informed by the Revenue Commissioners that CAT is a self assessment tax ordinarily payable electronically through Revenue’s Online System (ROS). Where the valuation date for a gift or an inheritance is in the period 1 January to 31 August, a CAT return and payment of CAT due must be made by 31 October in that year. Where the valuation date for a gift or an inheritance arises between 1 September and 31 December, a CAT return and payment of CAT due must be made by 31 October in the following year.

A person may opt to pay CAT that arises on gifts or inheritances of real property (e.g. lands and buildings) by monthly instalments over a maximum of a 5 year period. Where this option is chosen, interest is payable at the rate of 8% per annum on the outstanding CAT in accordance with section 51 of the Capital Acquisitions Tax Consolidation Act 2003 and is payable with each instalment.

The legislation governing CAT provides that the Revenue Commissioners can allow payment to be postponed for such period, to such extent and on such terms (including the waiver of interest) as they think fit in cases where it is shown to their satisfaction that payment of CAT cannot be made when due without excessive hardship.

The Revenue Commissioners may also allow payment of CAT by non-statutory instalments on a concessionary basis in exceptional circumstances where the taxpayer can show that payment of CAT liability by the due date would present significant difficulty. Interest would be chargeable on any late instalments. Each such case would be considered on its merits, taking into account both the financial circumstances of the beneficiary and the nature of the gift or inheritance involved.

A beneficiary experiencing difficulty in paying CAT should contact the local Revenue office, as early as possible before the CAT becomes due, to outline his or her circumstances and to explore the options available on paying the tax.

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