Capital Acquisitions Tax Act , 1976

(5) In any case where the interest taken by a donee or a successor is an interest limited to cease on his death, and his 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 shall be treated as an overpayment of tax for the purposes of section 46.

44 Postponement, remission and compounding of tax.

44.—(1) Where the Commissioners are satisfied that tax leviable in respect of any gift or inheritance cannot without excessive hardship be raised at once, they may allow payment to be postponed for such period, to such extent and on such terms (including the waiver of interest) as they think fit.

(2) If, after the expiration of the relevant period immediately following the date on which any tax became due and payable, the tax or any part thereof remains unpaid, the Commissioners may, if they think fit, remit the payment of any interest accruing after such expiration on the unpaid tax; and in this subsection, “relevant period” means the period at the end of which the interest on an amount payable in respect of tax would, at the rate from time to time chargeable during that period in respect of interest on tax, equal the amount of such tax.

(3) If, after the expiration of twenty years from the date on which any tax became due and payable, the tax or any part thereof remains unpaid, the Commissioners may, if they think fit, remit the payment of such tax or any part thereof and all or any interest thereon.

(4) Where, in the opinion of the Commissioners, the complication of circumstances affecting a gift or inheritance or the value thereof or the assessment or recovery of tax thereon are such as to justify them in doing so, they may compound the tax payable on the gift or inheritance upon such terms as they shall think fit, and may give a discharge to the person or persons accountable for the tax upon payment of the tax according to such composition.

45 Payment of inheritance tax by transfer of securities.

45.—The provisions of 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 thereunder shall apply, with any necessary modifications, to the payment of inheritance tax 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.

46 Overpayment of tax.

46.—Where, on application to the Commissioners for relief under this section, it is proved to their satisfaction that an amount has been paid in excess of the liability for tax or for interest on tax, they shall give relief by way of repayment of the excess or otherwise as is reasonable and just; and any such repayment shall carry simple interest (not exceeding the amount of such excess), without deduction of income tax, from the date on which the payment was made, at the same rate as that at which the tax would from time to time have carried interest if it were due and such payment had not been made.

47 Tax to be a charge.

47.—(1) Tax due and payable in respect of a taxable gift or a taxable inheritance shall, subject to the provisions of this section, be and remain a charge on the property (other than money or negotiable instruments) of which the taxable gift or taxable inheritance consists at the valuation date and the tax shall have priority over all charges and interests created by the donee or successor or any person claiming in right of the donee or successor or on his behalf:

Provided that where any settled property comprised in any taxable gift or taxable inheritance shall be subject to any power of sale, exchange, or partition, exercisable with the consent of the donee or successor, or by the donee or successor with the consent of another person, the donee or successor shall not be precluded by the charge of tax on his taxable gift or taxable inheritance from consenting to the exercise of such power, or exercising any power with proper consent, as the case may be; and where any such power is exercised, the tax shall be charged upon the property acquired, in substitution for charging it on the property previously comprised in the gift or inheritance, and upon all moneys arising from the exercise of any such power, and upon all investments of such moneys.

(2) Property comprised in a taxable gift or taxable inheritance shall not, as against a bona fide purchaser or mortgagee for full consideration in money or money's worth, or a person deriving title from or under such a purchaser or mortgagee, remain charged with or liable to the payment of tax after the expiration of twelve years from the date of the gift or the date of the inheritance.

(3) Tax shall not be a charge on property under subsection (1) as against a bona fide purchaser or mortgagee of such property for full consideration in money or money's worth without notice, or a person deriving title from or under such a purchaser or mortgagee.

48 Receipts and certificates.

48.—(1) When any amount in respect of tax is paid, the Commissioners shall give a receipt for the payment.

(2) The Commissioners shall, on application to them by a person who has paid the tax in respect of any property comprised in any taxable gift or taxable inheritance, give to the person a certificate, in such form as they think fit, of the amount of the tax paid by him in respect of that property.

(3) The Commissioners shall, on application to them by a person who is an accountable person in respect of any of the property of which a taxable gift or taxable inheritance consists, if they are satisfied that the tax charged on the property in respect of the taxable gift or taxable inheritance has been or will be paid, or that there is no tax so charged, give a certificate to the person, in such form as they think fit, to that effect, which shall discharge the property from liability for tax (if any) in respect of the gift or inheritance, to the extent specified in the certificate.

(4) A certificate referred to in subsection (3) shall not discharge the property from tax in case of fraud or failure to disclose material facts and, in any case, shall not affect the tax payable in respect of any other property:

Provided that a certificate purporting to be a discharge of the whole tax payable in respect of any property included in the certificate in respect of a gift or inheritance shall exonerate from liability for such tax a bona fide purchaser or mortgagee for full consideration in money or money's worth without notice of such fraud or failure and a person deriving title from or under such a purchaser or mortgagee.

49 Recovery of tax and penalties.

49.—(1) Any sum due and payable in respect of tax or interest thereon and any penalty incurred in connection with tax or interest thereon shall be deemed to be a debt due by the accountable person or, if he is dead, by his personal representative, to the Minister for Finance for the benefit of the Central Fund and shall be payable to the Commissioners and may (without prejudice to any other mode of recovery thereof) be sued for and recovered by action, or other appropriate proceeding, at the suit of the Attorney-General or the Minister for Finance or the Commissioners in any court of competent jurisdiction, notwithstanding anything to the contrary contained in the Inland Revenue Regulation Act, 1890.

(2) Any person who, having received any sum of money as or for any tax, interest, or penalty under this Act, does not apply the money to the due payment of the tax, interest or penalty, and improperly withholds or detains the same, shall be accountable for the payment of the tax, interest or penalty to the extent of the amount so received by him and the same shall be a debt due by him to the Minister for Finance for the benefit of the Central Fund and shall be recoverable in like manner as a debt under subsection (1).

(3) If any accountable person is liable under section 36 to deliver to the Commissioners a return or an additional return and makes default in so doing, the Attorney-General or the Minister for Finance or the Commissioners may sue by action or other appropriate proceeding in the Circuit Court for an order directing the person so making default to deliver such return or additional return or to show cause to the contrary; and the Circuit Court may by order direct such accountable person to deliver such return or additional return within such time as may be specified in the order.

(4) Whenever property is subject to a charge by virtue of section 47, the Attorney-General or the Minister for Finance or the Commissioners may sue by action or other appropriate proceeding in any court of competent jurisdiction for, and the court may make, an order directing the owner of the property to pay the tax with which the property is charged.

50 Evidence in proceedings for recovery of tax.

50.—The provisions of section 39 of the Finance Act, 1926, shall apply in any proceedings in the Circuit Court or the District Court for or in relation to the recovery of the tax.

PART VIII Appeals

51 Appeals regarding value of real property.

51.—If a person is aggrieved by the decision of the Commissioners as to the market value of any real property, he may appeal against the decision in the manner prescribed by section 33 of the Finance (1909-10) Act, 1910, and the provisions as to appeals under that section of that Act shall apply accordingly with any necessary modifications.

52 Appeals in other cases.

52.—(1) In this section—

“Appeal Commissioners” has the meaning assigned to it by section 156 of the Income Tax Act, 1967;

“appellant” means a person who appeals to the Appeal Commissioners under subsection (2) of this section.

(2) Subject to the other provisions of this Act, a person who is called upon by the Commissioners to pay an assessment of tax in respect of any property and who is aggrieved by the assessment may, in accordance with the provisions of this section, appeal to the Appeal Commissioners against the assessment and the appeal shall be heard and determined by the Appeal Commissioners whose determination shall be final and conclusive unless the appeal is required to be reheard by a judge of the Circuit Court or a case is required to be stated in relation to it for the opinion of the High Court on a point of law.

(3) An appeal shall not lie under this section in relation to the market value of real property.

(4) A person who intends to appeal under this section against an assessment shall, within 30 days after the date of the assessment, give notice in writing to the Commissioners of his intention to appeal against the assessment.

(5) (a) Subject to the provisions of this section, the provisions of the Income Tax Acts relating to—

(i) the appointment of times and places for the hearing of appeals;

(ii) the giving of notice to each person who has given notice of appeal of the time and place appointed for the hearing of his appeal;

(iii) the determination of an appeal by agreement between the appellant and an officer appointed by the Commissioners in that behalf;

(iv) the determination of an appeal by the appellant giving notice of his intention not to proceed with the appeal;

(v) the hearing and determination of an appeal by the Appeal Commissioners, including the hearing and determination of an appeal by one Appeal Commissioner;

(vi) the determination of an appeal through the neglect or refusal of a person who has given notice of appeal to attend before the Appeal Commissioners at the time and place appointed;

(vii) the extension of the time for giving notice of appeal and the readmission of appeals by the Appeal Commissioners and the provisions which apply where action by way of court proceedings has been taken;

(viii) the rehearing of an appeal by a judge of the Circuit Court and the statement of a case for the opinion of the High Court on a point of law;

(ix) the payment of tax in accordance with the determination of the Appeal Commissioners notwithstanding that an appeal is required to be reheard by a judge of the Circuit Court or that a case for the opinion of the High Court on a point of law has been required to be stated or is pending;

(x) the procedures for appeal,

shall, with any necessary modifications, apply to an appeal under this section as if the appeal were an appeal against an assessment to income tax.

(b) The Commissioners shall, subject to their giving notice in writing in that behalf to the appellant within ten days after the determination of an appeal by the Appeal Commissioners, have the same right as the appellant to have the appeal reheard by a judge of the Circuit Court.

(c) The rehearing of an appeal under this section by a judge of the Circuit Court shall be by a judge of the Circuit Court in whose circuit the appellant or one of the appellants resides or (in the case of a body corporate) has its principal place of business:

Provided that—

(i) in any case where no appellant is resident in or (in the case of a body corporate) has a place of business in the State; or

(ii) in any case where there is a doubt or a dispute as to the circuit,

the appeal shall be reheard by a judge of the Circuit Court assigned to the Dublin Circuit.

(6) (a) Where a notice or other document which is required or authorised to be served by this section falls to be served on a body corporate, such notice shall be served on the secretary or other officer of the body corporate.

(b) Any notice or other document which is required or authorised by this section to be served by the Commissioners or by an appellant may be served by post and in the case of a notice or other document addressed to the Commissioners, shall be sent to the Secretaries, Revenue Commissioners, Dublin Castle, Dublin 2.

(c) Any notice or other document which is required or authorised to be served by the Commissioners on an appellant under this section may be sent to the solicitor, accountant or other agent of the appellant and a notice thus served shall be deemed to have been served on the appellant unless the appellant proves to the satisfaction of the Appeal Commissioners, or the Circuit Court, as the case may be, that he had, before the notice or other document was served, withdrawn the authority of such solicitor, accountant or other agent to act on his behalf.

(7) Prima facie evidence of any notice given under this section by the Commissioners or by an officer of the Commissioners may be given in any proceedings by production of a document purporting to be a copy of the notice and it shall not be necessary to prove the official position of the person by whom the notice purports to be given or, if it is signed, the signature, or that the person signing and giving it was authorised so to do.

(8) (a) The Commissioners may serve notice in writing, referring expressly to this subsection, on any person whom they have reason to believe to be accountable for the payment of tax, of any decision they have made which is relevant to such tax.

(b) Any person who is informed of a decision in accordance with paragraph (a) may appeal to the Appeal Commissioners against the decision.

(c) The Appeal Commissioners shall hear and determine an appeal to them under this subsection as if it were an appeal to them against an assessment to tax, and the provisions of this section relating to an appeal or to the rehearing of an appeal or to the statement of a case for the opinion of the High Court on a point of law shall, with any necessary modifications, apply accordingly.

PART IX Exemptions

53 Exemption of small gifts.

53.—(1) The first £250 of the total taxable value of all taxable gifts taken by a donee from any one disponer in any relevant period shall be exempt from tax and shall not be taken into account in computing tax.

(2) 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 two years prior to the death of the disponer, the same relief shall be granted in respect thereof under subsection (1) as if it were a gift.

(3) The first £250 of the total aggregable value of all aggregable gifts (within the meaning of paragraph 1 of Part I of the Second Schedule) which are taken by the donee from any one disponer in any relevant period shall not be taken into account in computing tax.

(4) In this section, “relevant period” means the period commencing on the 28th day of February, 1969, and ending on the 31st day of December, 1969, and thereafter the period of twelve months ending on the 31st day of December in each year.

54 Provisions relating to charities, etc.

54.—(1) Any benefit taken by a person for public or charitable purposes shall, for the purposes of sections 5 (1) and 11 (1), be deemed to be taken beneficially by a person who is other than a donee or successor referred to in Table I, II or III of Part II of the Second Schedule.

(2) A gift or an inheritance which is taken for public or charitable purposes shall, to the extent that the Commissioners are satisfied that it has been or will be applied to public or charitable purposes in the State or Northern Ireland, be exempt from tax and shall not be taken into account in computing tax.

(3) Save as provided in section 56 (4), a gift or inheritance which a person takes on becoming entitled to any benefit on the application to public or charitable purposes of property (including moneys provided by the Oireachtas or a local authority) held for such purposes shall be exempt from tax and shall not be taken into account in computing tax.

55 Exemption of certain objects.

55.—(1) This section applies to the following objects, that is to say, any pictures, prints, books, manuscripts, works of art, jewellery, scientific collections or other things not held for the purposes of trading—

(a) which, on a claim being made to the Commissioners, appear to them to be of national, scientific, historic or artistic interest;

(b) which are kept permanently in the State except for such temporary absences outside the State as are approved by the Commissioners; and

(c) in respect of which reasonable facilities for viewing are allowed to members of the public or to recognised bodies or to associations of persons.

(2) (a) Any object to which this section applies and which, at the date of the gift or at the date of inheritance, and at the valuation date, is comprised in a gift or an inheritance taken by a person shall be exempt from tax in relation to that gift or inheritance, and the value thereof shall not be taken into account in computing tax on any gift or inheritance taken by that person from the same disponer unless the exemption ceases to apply under the provisions of subsection (3) or (4).

(b) The provisions of section 19 (6) shall apply, for the purposes of this subsection, as they apply in relation to agricultural property.

(3) If an object exempted from tax by virtue of subsection (2) is sold within six years after the valuation date, and before such object forms part of the property comprised in a subsequent gift or inheritance, the exemption referred to in subsection (2) shall cease to apply to such object:

Provided that, if the sale of such object is a sale by private treaty to the National Gallery of Ireland, the National Museum of Science and Art or any other similar national institution, any university in the State, a local authority or the Friends of the National Collections of Ireland, the exemption referred to in subsection (2) shall continue to apply.

(4) The exemption referred to in subsection (2) shall cease to apply to an object, if at any time after the valuation date, and before such object again forms part of the property comprised in a gift or an inheritance, there has been a breach, by the donee or successor, of any condition specified in subsection (1) (b) or (c).

56 Payments relating to retirement, etc.

56.—(1) Subject to the provisions of subsection (2), any payment to an employee or former employee by, or out of funds provided by, his employer or any other person, bona fide by way of retirement benefit, redundancy payment or pension shall not be a gift or an inheritance.

(2) Subsection (1) shall not have effect in relation to a payment referred to in that subsection, and any such payment shall be deemed to be a gift or an inheritance where—

(a) (i) the employee is a relative of the employer or other disponer; or

(ii) the employer is a private company within the meaning of section 16 (2), and of which private company the employee is deemed to have control within the meaning of that section:

(b) the payment is not made under a scheme (relating to superannuation, retirement or redundancy) approved by the Commissioners under the Income Tax Acts; and

(c) the Commissioners decide that in the circumstances of the case the payment is excessive.

(3) The Commissioners shall serve on an accountable person a notice in writing of their decision referred to in subsection (2) and the accountable person concerned may appeal against such decision and section 52 shall apply with any necessary modifications in relation to such appeal as it applies in relation to an appeal against an assessment of tax.

(4) Any benefit taken by a person other than the person in respect of whose service the benefit arises, under the provisions of any superannuation fund, or under any superannuation scheme, established solely or mainly for persons employed in a profession, trade, undertaking or employment, and their dependants, shall (whether or not any person had a right enforceable at law to the benefit) be deemed to be a gift or an inheritance, as the case may be, derived under a disposition made by the person in respect of whose service the benefit arises and not by any other person.

(5) In this section—

“superannuation scheme” includes any arrangement in connection with employment for the provision of a benefit on or in connection with the retirement or death of an employee;

“employment” includes employment as a director of a body corporate and cognate words shall be construed accordingly.

57 Exemption of certain securities.

57.—(1) In this section—

“security” means any security, stock, share, debenture, debenture stock, certificate of charge or other form of security issued, whether before or after the passing of this Act, and which by virtue of any enactment or by virtue of the exercise of any power conferred by any enactment is exempt from taxation when in the beneficial ownership of a person neither domiciled nor ordinarily resident in the State;

“unit trust scheme” means a unit trust scheme registered in the register established by the Unit Trusts Act, 1972, whose deed expressing the trusts of the scheme restricts the property subject to those trusts to securities.

(2) Any security, or units (within the meaning of the Unit Trusts Act, 1972) of a unit trust scheme, comprised in a gift or an inheritance shall be exempt from tax (and shall not be taken into account in computing tax on any gift or inheritance taken by the donee or successor from the same disponer) if and only if—

(a) the security or units was or were comprised in the gift or inheritance—

(i) at the date of the gift or at the date of the inheritance; and

(ii) at the valuation date; and

(b) the donee or successor is at the date of the gift or at the date of the inheritance neither domiciled nor ordinarily resident in the State and the provisions of section 19 (6) shall apply, for the purposes of this subsection, as they apply in relation to agricultural property:

Provided that if a security or units or any part thereof comprised—

(a) in a gift; or

(b) in a gift which becomes an inheritance by reason that it was taken under a disposition where the date of the disposition was within two years prior to the death of the disponer,

is within one year after the valuation date sold or exchanged, or is converted (otherwise than into another security or other units respectively, which, during that period of one year, are not sold or exchanged), the donee or successor shall be deemed to have taken from the disponer a gift or an inheritance, as the case may be, consisting of a sum equal to the market value at the valuation date of the security or units or of the part thereof that has been sold, exchanged or converted.

(3) For the purposes of sections 6 (1) (c) and 12 (1) (b), the sum referred to in the proviso to subsection (2) shall be deemed to be situate in the State at the date of the gift or at the date of the inheritance, as the case may be, if the security or units (or the part thereof) so sold, exchanged or converted had at that date been situate in the State and not otherwise.

58 Exemption of certain receipts.

58.—(1) The following shall not be gifts or inheritances—

(a) the receipt by a person of any sum bona fide by way of compensation or damages for any wrong or injury suffered by him in his person, property, reputation or means of livelihood;

(b) the receipt by a person of any sum bona fide by way of compensation or damages for any wrong or injury resulting in the death of any other person;

(c) the receipt by a person of any sum bona fide by way of winnings from betting (including pool betting) or from any lottery, sweepstake or game with prizes;

(d) any benefit arising out of—

(i) the payment to the Official Assignee in Bankruptcy of money which has been provided by, or which represents property provided by, friends of a bankrupt; or

(ii) a remission or abatement of debts by the creditors of a bankrupt,

to enable the bankrupt to fulfil an offer of composition after bankruptcy in accordance with the provisions of section 149 of the Irish Bankrupt and Insolvent Act, 1857; and

(e) any benefit arising out of—

(i) the payment to the Official Assignee in Bankruptcy of money which has been provided by, or which represents property provided by, friends of an arranging debtor; or

(ii) a remission or abatement of debts by the creditors of an arranging debtor,

to enable the debtor to carry out the terms of a proposal made by him under section 345 of the Irish Bankrupt and Insolvent Act, 1857, which has been accepted by his creditors and approved and confirmed by the High Court.

(2) Notwithstanding anything contained in this Act, the receipt in the lifetime of the disponer of money or money's worth—

(a) by—

(i) the spouse or child of the disponer; or

(ii) a person in relation to whom the disponer stands in loco parentis,

for support, maintenance or education; or

(b) by a person who is in relation to the disponer a dependent relative under section 142 of the Income Tax Act, 1967, for support or maintenance,

shall not be a gift or an inheritance, where the provision of such support, maintenance or education, or such support or maintenance—

(i) is such as would be part of the normal expenditure of a person in the circumstances of the disponer, and

(ii) is reasonable having regard to the financial circumstances of the disponer.

59 Exemption where disposition was made by the donee or successor.

59.—(1) Tax shall not be chargeable upon a gift or an inheritance taken by the donee or successor under a disposition made by himself.

(2) Where, at the date of the gift, two companies are associated in the manner described in subsection (3), a gift taken by one of them under a disposition made by the other shall be deemed to be a gift to which subsection (1) applies.

(3) For the purposes of subsection (2), two companies shall be regarded as associated if—

(a) one company would be beneficially entitled to not less than 90 per cent. of any assets of the other company available for distribution to the owners of its shares and entitlements of the kind referred to in section 34 (1) on a winding up; or

(b) a third company would be beneficially entitled to not less than 90 per cent. of any assets of each of them available as in paragraph (a).

(4) In this section, “company” means a body corporate (wherever incorporated), other than a private company within the meaning of section 16 (2).

PART X Miscellaneous

60 Certificates for probate.

60.—(1) Where an Inland Revenue affidavit has been delivered to the Commissioners and they are satisfied—

(a) that an adequate payment on account of inheritance tax in respect of the property passing under the deceased person's will or intestacy or Part IX or section 56 of the Succession Act, 1965, has been made; or

(b) that the payment of inheritance tax in respect of such property may be deferred for the time being,

they shall certify in writing—

(i) that the Inland Revenue affidavit was delivered to them; and

(ii) (I) that a payment referred to in paragraph (a) has been made; or

(II) that the payment referred to in paragraph (b) has been deferred for the time being,

as the case may be.

(2) In this section “Inland Revenue affidavit” has the meaning referred to in section 38 (1).

(3) If, in the opinion of the Commissioners, the payment of inheritance tax in respect of the property passing under the deceased person's will or intestacy or Part IX or section 56 of the Succession Act, 1965, cannot be deferred for the time being without serious risk of such tax not being recovered, they may refuse to issue the certificate referred to in subsection (1) until the tax has been paid, or until such payment as is referred to in paragraph (a) of that subsection has been made.

(4) The certificate required by section 30 of the Customs and Inland Revenue Act, 1881, to be made by the proper officer of the court, shall not be made until a certificate of the Commissioners issued under subsection (1) has been produced to such officer and shall (instead of showing that the affidavit, if liable to stamp duty, has been duly stamped) show that the Commissioners have issued a certificate under subsection (1) and shall state the substance of the certificate so issued by the Commissioners.

(5) The form of certificate required to be given by the proper officer of the court under section 30 of the Customs and Inland Revenue Act, 1881, may be prescribed by rule of court in such manner as may be necessary for giving effect to this Act.

(6) This section shall apply only where the deceased person dies on or after the 1st day of April, 1975.

61 Payment of money standing in names of two or more persons.

61.—(1) Where, either before or after the passing of this Act, a sum of money exceeding £5,000 is lodged or deposited (otherwise than on a current account) in the State with a banker, in the joint names of two or more persons, and one of such persons (in this section referred to as the deceased) dies on or after the 1st day of April, 1975, the banker shall not pay such money or any part thereof to the survivor or all or any of the survivors of such persons, or to any other person, unless or until there is furnished to such banker a certificate by the Commissioners certifying that there is no outstanding claim for inheritance tax in connection with the death of the deceased in respect of such money or any part thereof or a consent in writing by the Commissioners to such payment pending the ascertainment and payment of such tax.

(2) Notwithstanding anything contained in this Act, tax chargeable on the death of the deceased shall be deemed for the purposes of this section to become due on the day of the death of the deceased.

(3) A banker who, after the passing of this Act, pays money in contravention of this section shall be liable to a penalty of £1,000.

(4) Where a penalty is demanded of a banker under this section, the onus of proving that such certificate or such consent as is mentioned in this section was furnished to such banker before he paid such money shall lie on such banker.

(5) Where a penalty is demanded of a banker under this section, it shall be a good defence to prove that, at the time when such banker paid such money, he had reasonable ground for believing that none of the persons in whose joint names such money was lodged or deposited with him was dead.

(6) Section 33 of the Finance Act, 1935, shall not have effect in any case where the death of a person, referred to in that section as the deceased, occurs on or after the 1st day of April, 1975.

(7) In this section—

“banker” means a person who carries on banking business in the State and includes a friendly society, an industrial and provident society, a building society, the Post Office Savings Bank, a trustee savings bank, the Industrial Credit Company Limited, the Agricultural Credit Corporation Limited and any person with whom money is lodged or deposited;

“pay” includes transfer in the books of a banker and any dealings whatsoever with any moneys which were lodged or deposited in the name of a person who died after the time of the lodgment or deposit and any other person or persons;

“current account” means an account which is customarily operated upon by means of a cheque or banker's order;

“banking business” has the meaning assigned to it by section 2 of the Central Bank Act, 1971;

references to moneys lodged or deposited include references to shares of a building society, friendly society or industrial and provident society.

62 Court to provide for payment of tax.

62.—Where any suit is pending in any court for the administration of any property chargeable with tax under this Act, such court shall provide, out of any such property which may be in the possession or control of the court, for the payment to the Commissioners of any of the tax or the interest thereon which remains unpaid.

63 Penalties.

63.—(1) (a) Any person who contravenes or fails to comply with—

(i) any requirement under section 36 (6), (7) or (8); or

(ii) the provisions of section 36 (2) or (9)

shall be liable to a penalty of £500.

(b) Where the contravention or failure referred to in paragraph (a) continues after judgment has been given by the court before which proceedings for the penalty have been commenced, the person concerned shall be liable to a further penalty of £25 for each day on which the contravention or failure so continues.

(2) Where, under, or for the purposes of, any of the provisions of this Act, a person is authorised to inspect any property for the purpose of reporting to the Commissioners the market value thereof and the person having custody or possession of that property prevents such inspection or obstructs the person so authorised in the performance of his functions in relation to the inspection, the person so having custody or possession shall be liable to a penalty of £500.

(3) Where an accountable person fraudulently or negligently—

(a) delivers any incorrect return or additional return;

(b) makes or furnishes any incorrect statement, declaration, evidence or valuation in connection with any property comprised in any disposition;

(c) makes or furnishes any incorrect statement, declaration, evidence or valuation in connection with any claim for any allowance, deduction, exemption or relief; or

(d) makes or furnishes any incorrect statement, declaration, evidence or valuation in connection with any other matter,

on the basis of which the amount of tax assessable in respect of a taxable gift or taxable inheritance would be less than it would have been if the correct return, additional return, statement, declaration, evidence or valuation had been delivered, made or furnished, he shall be liable to a penalty of—

(i) £1,000; and

(ii) the amount, or in the case of fraud, twice the amount, of the difference specified in subsection (5).

(4) Where any such return, additional return, statement, declaration, evidence or valuation as is mentioned in subsection (3) was delivered, made or furnished neither fraudulently nor negligently by a person and it comes to his notice that it was incorrect, then, unless the error is remedied without unreasonable delay, such matter shall be treated, for the purposes of this section, as having been negligently done by him.

(5) The difference referred to in subsection (3) is the difference between—

(a) the amount of tax payable in respect of the taxable gift or taxable inheritance to which the return, additional return, statement, declaration, evidence or valuation relates; and

(b) the amount which would have been the amount so payable if the return, additional return, statement, declaration, evidence or valuation as made or submitted had been correct.

(6) For the purpose of subsection (3), where anything referred to in that subsection is delivered, made or furnished on behalf of a person, it shall be deemed to have been delivered, made or furnished by that person unless he proves that it was done without his knowledge or consent.

(7) Any person who assists in or induces the delivery, making or furnishing for any purposes of the tax of any return, additional return, statement, declaration, evidence or valuation which he knows to be incorrect shall be liable to a penalty of £250.

(8) The provisions of this section shall not affect any criminal proceedings.

(9) Subject to the provisions of this section, sections 128 (4), 507, 508, 510, 511, 512, 517 and 518 of the Income Tax Act, 1967, shall, with any necessary modifications, apply to a penalty under this Act as if the penalty were a penalty under the Income Tax Acts.

64 Liability to tax in respect of certain sales and mortgages.

64.—(1) In this section—

“death duties” has the meaning assigned to it by section 30 of the Finance Act, 1971; and

“purchaser or mortgagee” includes a person deriving title from or under a purchaser or mortgagee in the case of such a sale or mortgage as is referred to in this section.

(2) Where an interest in expectancy has, prior to the 1st day of April, 1975, been bona fide sold or mortgaged for full consideration in money or money's worth, and that interest comes into possession on a death occurring on or after that date, the following provisions shall have effect, that is to say—

(a) the purchaser or mortgagee shall not be liable in respect of inheritance tax on the inheritance referred to in paragraph (b) for an amount greater than that referred to in paragraph (c);

(b) the inheritance referred to in paragraph (a) is the inheritance of property in which the interest so sold or mortgaged subsists and which arises in respect of the interest of the remainderman referred to in section 23 so coming into possession;

(c) the amount referred to in paragraph (a) shall be the amount that would then have been payable by the purchaser or mortgagee in respect of death duties on the property in which the interest subsists as property passing under the same disposition as that under which the said inheritance is taken, if the property, on so coming into possession, had been chargeable to death duties—

(i) under the law in force; and

(ii) at the rate or rates having effect,

at the date of the sale or mortgage;

(d) where such an interest is so mortgaged, any amount of inheritance tax payable in respect of the inheritance referred to in paragraph (b), and from the payment of which the mortgagee is relieved under this section, shall, notwithstanding the priority referred to in section 47 (1), rank, in relation to property charged with such tax under that section, as a charge subsequent to the mortgage;

(e) any person, other than the purchaser or mortgagee, who is accountable for the payment of so much of the inheritance tax as is not the liability of the purchaser or mortgagee by virtue of the relief given by this section, shall not be liable for the payment of any amount in respect thereof in excess of the amount which is available to him for such payment by reason of there being, at the time when the interest comes into possession, other property, or an equity of redemption, or both, subject to the same trusts, under the disposition referred to in paragraph (c), as the property in which the interest in expectancy subsists; and

(f) nothing in section 35 (7) or (8) or section 47 (1) shall be construed as derogating from the relief given by this section to a purchaser or mortgagee.

65 References in deeds and wills, etc. to death duties.

65.—In so far as a provision in a document refers (in whatever terms) to any death duty to arise on any death occurring on or after the 1st day of April, 1975, it shall have effect, as far as may be, as if the reference included a reference to inheritance tax—

(a) if that document was executed prior to the passing of this Act, and the reference is to legacy duty and succession duty or either of them;

(b) if that document was so executed, and the reference is to estate duty, and it may reasonably be inferred from all the circumstances (including any similarity of the incidence of inheritance tax to that of estate duty) that the inclusion of the reference to inheritance tax would be just; and

(c) whether the document was executed prior to or after the passing of this Act, if the reference is to death duties, without referring to any particular death duty.

66 Arrangements for relief from double taxation.

66.—(1) If the Government by order declare that arrangements specified in the order have been made with the government of any territory outside the State in relation to affording relief from double taxation in respect of gift tax or inheritance tax payable under the laws of the State and any tax imposed under the laws of that territory which is of a similar character or is chargeable by reference to death or to gifts inter vivos and that it is expedient that those arrangements should have the force of law, the arrangements shall, notwithstanding anything in any enactment, have the force of law.

(2) Any arrangements to which the force of law is given under this section may include provision for relief from tax charged before the making of the arrangements and provisions as to property which is not itself subject to double tax, and the provisions of this section shall have effect accordingly.

(3) For the purposes of subsection (1), arrangements made with the head of a foreign state shall be regarded as made with the government thereof.

(4) Where any arrangements have the force of law by virtue of this section, the obligation as to secrecy imposed by any enactment shall not prevent the Commissioners from disclosing to any authorised officer of the government with which the arrangements are made such information as is required to be disclosed under the arrangements.

(5) (a) Any order made under this section may be revoked by a subsequent order and any such revoking order may contain such transitional provisions as appear to the Government to be necessary or expedient.

(b) Where an order is proposed to be made under this section, a draft thereof shall be laid before Dáil Éireann and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann.

67 Other relief from double taxation.

67.—(1) (a) In this section—

“foreign tax” means any tax which is chargeable under the laws of any territory outside the State and is of a character similar to estate duty, gift tax or inheritance tax;

“event” means—

(i) a death; or

(ii) any other event,

by reference to which the date of the gift or the date of the inheritance is determined.

(b) For the purposes of this section, a reference to property situate in a territory outside the State is a reference to property situate in that territory at the date of the gift or the date of the inheritance, as the case may be, or to property representing such property.

(2) Where the Commissioners are satisfied that a taxable gift or taxable inheritance, taken under a disposition by a donee or successor on the happening of any event, is reduced by the payment of foreign tax which is chargeable in connection with the same event under the same disposition in respect of property which is situate in the territory outside the State in which that foreign tax is chargeable, they shall allow a credit in respect of that foreign tax against the gift tax or inheritance tax payable by that donee or successor on that taxable gift or taxable inheritance; but such credit shall not exceed—

(a) the amount of the gift tax or inheritance tax payable in respect of the same property by reason of such property being comprised in any taxable gift or taxable inheritance taken under that disposition on the happening of that event; or

(b) the amount of that foreign tax,

whichever is the lesser.

(3) The provisions of this section shall be subject to any arrangement to which the force of law is given under section 66, and, if any such arrangement provides for the allowance of the amount of a tax payable in a territory outside the State as a credit against gift tax or inheritance tax, the provisions of the arrangement shall apply in relation to the tax payable in that territory in lieu of the provisions of subsection (2).

(4) If the amount of tax payable in respect of a taxable gift or taxable inheritance would be less by making a deduction (in ascertaining the taxable value of the taxable gift or taxable inheritance) of the amount of the foreign tax to which the taxable gift or taxable inheritance is subject than by making the allowance of a credit—

(a) under subsection (2); or

(b) under any arrangement to which the force of law is given under section 66,

such deduction shall be made notwithstanding the provisions of section 18 (5) (b), and no such credit shall be allowed.

(5) Where the foreign tax in respect of property comprised in a taxable gift or a taxable inheritance taken under a disposition on the happening of an event is, under the terms of the disposition, directed to be paid out of a taxable gift or a taxable inheritance (taken under that disposition on the happening of the same event) other than the taxable gift or taxable inheritance out of which it would be payable in the absence of such a direction, then, for the purposes of subsection (2), the taxable gift or taxable inheritance out of which the foreign tax would be payable in the absence of such a direction, and no other taxable gift or taxable inheritance, shall be treated as reduced by the payment of the foreign tax.

68 Tax, in relation to certain legislation.

68.—(1) Inheritance tax shall not be a duty or a death duty for the purposes of section 9 of the Succession Act, 1965, but it shall be a death duty for the purposes of—

(a) section 34 (3) of that Act;

(b) the definition of pecuniary legacy in section 3 (1) of that Act; and

(c) paragraph 8 of Part II of the First Schedule to that Act.

(2) Section 72 of the Registration of Title Act, 1964, shall apply as if gift tax and inheritance tax were therein mentioned as well as estate duty and succession duty.

69 Extension of certain Acts.

69.—(1) Section 1 of the Provisional Collection of Taxes Act, 1927, is hereby amended by the insertion of “and gift tax and inheritance tax” before “but no other tax or duty”.

(2) Section 39 of the Inland Revenue Regulation Act, 1890, is hereby amended by the insertion of “gift tax and inheritance tax,” before “stamp duties”.

70 Delivery, service and evidence of notices and forms, etc.

70.—(1) Any notice which under this Act is authorised or required to be given by the Commissioners may be served by post.

(2) A notice or form which is to be served on a person may be either delivered to him or left at his usual or last known place of abode.

(3) Prima facie evidence of any notice given under this Act by the Commissioners or any officer of the Commissioners may be given in any proceedings by production of a document purporting to be a copy of the notice, and it shall not be necessary to prove the official position of the person by whom the notice purports to be given or, if it is signed, the signature, or that the person signing and giving it was authorised so to do.

(4) In any case where a time limit is specified by or under this Act, other than Part VIII hereof, for the doing of any act required by or under this Act, other than Part VIII hereof, to be done by any person other than the Commissioners, the Commissioners may, in their discretion, extend such time limit.

71 Regulations.

71.—(1) The Commissioners shall make such regulations as seem to them to be necessary for the purpose of giving effect to this Act and of enabling them to discharge their functions thereunder.

(2) 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 twenty-one 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.

72 Care and management.

72.—(1) Tax is hereby placed under the care and management of the Commissioners.

(2) Subject to the direction and control of the Commissioners, any power, function or duty conferred or imposed on the Commissioners by this Act may be exercised or performed on their behalf by an officer of the Commissioners.

FIRST SCHEDULE Valuation of Limited Interests

PART I

Rules relating to the valuation of limited interests utilising Tables A and B in Parts II and III of this Schedule

(a) the value of the capital sum, multiplied by the factor in Table B which is appropriate to the number of whole years in that period (or zero if that period is less than a whole year); and

(b) where the period is not an integral number of years, a fraction (of which the numerator is the number of days in excess of the number of whole years, if any, in that period and the denominator is 365) of the difference between—

(i) the value of an interest in the capital sum for one year longer than the number of whole years, if any, in the period; and

(ii) the value ascertained under the provisions of paragraph (a) (or zero, where so provided in the said paragraph).

(a) the value of an interest for such life or lives, ascertained in accordance with the appropriate rule in this part of this Schedule; and

(b) the value of an interest for the period certain, ascertained in accordance with rule 6.

PART II

TABLE A

1	2	3	4
Years of age	Joint Factor	Value of an interest in a capital of £1 for a male life aged as in column 1	Value of an interest in a capital of £1 for a female life aged as in column 1
0	99	9519	9624
1	99	9767	9817
2	99	9767	9819
3	99	9762	9817
4	99	9753	9811
5	99	9742	9805
6	99	9730	9797
7	99	9717	9787
8	99	9703	9777
9	99	9688	9765
10	99	9671	9753
11	98	9653	9740
12	98	9634	9726
13	98	9614	9710
14	98	9592	9693
15	98	9569	9676
16	98	9546	9657
17	98	9522	9638
18	98	9497	9617
19	98	9471	9596
20	97	9444	9572
21	97	9416	9547
22	97	9387	9521
23	97	9356	9493
24	97	9323	9464
25	97	9288	9432
26	97	9250	9399
27	97	9209	9364
28	97	9165	9328
29	97	9119	9289
30	96	9068	9248
31	96	9015	9205
32	96	8958	9159
33	96	8899	9111
34	96	8836	9059
35	96	8770	9005
36	96	8699	8947
37	96	8626	8886
38	95	8549	8821
39	95	8469	8753
40	95	8384	8683
41	95	8296	8610
42	95	8204	8534
43	95	8107	8454
44	94	8005	8370
45	94	7897	8283
46	94	7783	8192
47	94	7663	8096
48	93	7541	7997
49	93	7415	7896
50	92	7287	7791
51	91	7156	7683
52	90	7024	7572
53	89	6887	7456
54	89	6745	7335
55	88	6598	7206
56	88	6445	7069
57	88	6288	6926
58	87	6129	6778
59	86	5969	6628
60	86	5809	6475
61	86	5650	6320
62	86	5492	6162
63	85	5332	6000
64	85	5171	5830
65	85	5007	5650
66	85	4841	5462
67	84	4673	5266
68	84	4506	5070
69	84	4339	4873
70	83	4173	4679
71	83	4009	4488
72	82	3846	4301
73	82	3683	4114
74	81	3519	3928
75	80	3352	3743
76	79	3181	3559
77	78	3009	3377
78	76	2838	3198
79	74	2671	3023
80	72	2509	2855
81	71	2353	2693
82	70	2203	2538
83	69	2057	2387
84	68	1916	2242
85	67	1783	2104
86	66	1657	1973
87	65	1537	1849
88	64	1423	1730
89	62	1315	1616
90	60	1212	1509
91	58	1116	1407
92	56	1025	1310
93	54	0939	1218
94	52	0858	1132
95	50	0781	1050
96	49	0710	0972
97	48	0642	0898
98	47	0578	0828
99	45	0517	0762
100 or over	43	0458	0698

PART III

TABLE B

(Column 2 shows the value of an interest in a capital of £1 for the number of years shown in column 1).

1	2	1	2
Number of years	Value	Number of years	Value
1	0654	26	8263
2	1265	27	8375
3	1836	28	8480
4	2370	29	8578
5	2869	30	8669
6	3335	31	8754
7	3770	32	8834
8	4177	33	8908
9	4557	34	8978
10	4913	35	9043
11	5245	36	9100
12	5555	37	9165
13	5845	38	9230
14	6116	39	9295
15	6369	40	9360
16	6605	41	9425
17	6826	42	9490
18	7032	43	9555
19	7225	44	9620
20	7405	45	9685
21	7574	46	9750
22	7731	47	9815
23	7878	48	9880
24	8015	49	9945
25	8144	50 and over	10000

SECOND SCHEDULE Computation of Tax

PART I

Preliminary

“aggregable gift” means a gift taken by a donee on or after the 28th day of February, 1969, and before the 28th day of February, 1974, which, so far as it is a taxable gift, is by virtue of section 9 to be aggregated with any later taxable gift or taxable inheritance for the purpose mentioned in that section;

“aggregable value” means the taxable value of an aggregable gift;

“appropriate Table”, in relation to a donee or successor who, at the date of the gift or at the date of the inheritance, in respect of which gift or inheritance the tax is being computed, is—

(a) the spouse, child, or minor child of a deceased child, of the disponer, means Table I;

(b) a lineal ancestor or a lineal descendant (other than a child, or a minor child of a deceased child) of the disponer, means Table II;

(c) a brother or sister, or a child of a brother or of a sister, of the disponer, means Table III;

(d) a donee or successor who does not stand to the disponer in a relationship referred to in subparagraph (a), (b) or (c), means Table IV;

contained in Part II of this Schedule.

(a) in the case referred to in paragraph 3, the taxable value referred to in that paragraph;

(b) in the case referred to in paragraph 4, the aggregate referred to in that paragraph.

(a) that taxable value;

(b) the taxable values of all such previous taxable gifts and taxable inheritances (if any); and

(c) the aggregable values of all such aggregable gifts (if any),

as is the highest part of that aggregate and is equal to that taxable value.

(a) the donee or successor is a nephew or niece of the disponer who has worked substantially on a full-time basis for the period of 5 years ending on the date of the gift or the date of the inheritance in carrying on, or assisting in the carrying on of, the trade, business or profession or the work of or connected with the office or employment of the disponer; and

(b) the gift or inheritance consists of property which was used in connection with such trade, business, profession, office or employment or of shares in a company owning such property,

then, for the purpose of computing the tax payable on the gift or inheritance, the donee or successor shall be deemed to bear to the disponer the relationship of a child.

PART II

TABLE I

Applicable where the donee or successor is the spouse, child, or minor child of a deceased child, of the disponer.

Portion of Value		Rate of tax
Lower Limit	Upper Limit	Per cent.
£	£
0	150,000	Nil
150,000	200,000	25
200,000	250,000	30
250,000	300,000	35
300,000	350,000	40
350,000	400,000	45
400,000	—	50

TABLE II

Applicable where the donee or successor is a lineal ancestor or a lineal descendant (other than a child, or a minor child of a deceased child) of the disponer.

Portion of Value		Rate of tax
Lower Limit	Upper Limit	Per cent.
£	£
0	15,000	Nil
15,000	18,000	5
18,000	23,000	7
23,000	33,000	10
33,000	43,000	13
43,000	53,000	16
53,000	63,000	19
63,000	73,000	22
73,000	88,000	25
88,000	103,000	28
103,000	118,000	31
118,000	133,000	34
133,000	148,000	37
148,000	163,000	40
163,000	178,000	43
178,000	193,000	46
193,000	208,000	49
208,000	—	50

TABLE III

Applicable where the donee or successor is a brother or a sister, or a child of a brother or of a sister, of the disponer.

Portion of Value		Rate of tax
Lower Limit	Upper Limit	Per cent.
£	£
0	10,000	Nil
10,000	13,000	10
13,000	18,000	12
18,000	28,000	15
28,000	38,000	19
38,000	48,000	23
48,000	58,000	27
58,000	68,000	31
68,000	83,000	35
83,000	98,000	40
98,000	113,000	45
113,000	—	50

TABLE IV

Applicable where the donee or successor does not stand to the disponer in a relationship referred to in Table I, II or III of this Part of this Schedule.

Portion of Value		Rate of tax
Lower Limit	Upper Limit	Per cent.
£	£
0	5,000	Nil
5,000	8,000	20
8,000	13,000	22
13,000	23,000	25
23,000	33,000	30
33,000	43,000	35
43,000	53,000	40
53,000	63,000	45
63,000	78,000	50
78,000	93,000	55
93,000	—	60