Heeding new changes tot he admin of capital acquistions tax
The 2010 Finance Act introduced changes to the administration of capital acquisitions tax (CAT).
Three of the significant changes (which came into effect on June 14) are:
1. The introduction of a pay-and-file regime for gift tax and inheritance tax -- similar to the income tax self-assessment regime.
2. The introduction of a surcharge for the late filing of the CAT return.
3. The mandatory online filing of CAT returns which contain claims for relief (eg agricultural relief, business relief, etc).
1. All gifts and inheritances with a valuation date in the 12 months ending August 31 each year must be returned to Revenue and the tax paid by the following October 31 (an extra two weeks is allowed if the return is filed online). For 2010, only gifts and inheritances with valuation dates from June 14 to August 31 are involved in the new scheme.
2. Failure to lodge your return on time will result in a surcharge. If the return is lodged within two months of the filing date, the surcharge effectively increases the tax liability by 5pc, subject to a maximum of €12,695. If returned after this, the surcharge is 10pc, subject to a maximum of €63,485.