The 2010 Finance Act
introduces a fixed pay and file date for CAT of 31 October. Previously, if a CAT return and payment was due, in
respect of a gift or inheritance, the return had to be filed and the payment
made, within 4 months of the valuation date.
For all gifts and inheritances with a valuation date
between 1 January and 31 August – the CAT return must be filed by 31 October of
that year and any resulting CAT liability must be paid by that date.
Where the valuation date arises between 1 September and 31 December the
relevant date for filing and payment is 31 October in the next year.
While it is not always possible to manipulate the valuation date (the valuation
date will normally be the date of probate or the date of death) but where there
is an element of control 1 September would appear to give the maximum amount of
time before payment of 14 months.
The existing paper return (Form IT38) is being
replaced with a simplified paper version where the beneficiary is not claiming
any reliefs or exemptions except the small gift allowance.
Where any relief or exemption is being claimed the
return must be filed electronically through ROS. A major advantage of ROS
is that the system will calculate the correct CAT due based on the information
entered on the return.
A surcharge will now arise in respect of late
returns. A 5% surcharge applies subject to a maximum of €12,695 where the
tax return is delivered within 2 months of the filing date. A 10%
surcharge up to a maximum of €63,485 will be applied where the tax return is
not delivered within 2 months of the filing date.
If you have any queries on the above, please contact Kieran Kennelly on 021 4310 266 or email@example.com.