46 Delivery of returns

Summary

This section provides that a person who is accountable for the payment of tax must deliver a return and assess and pay the tax in respect of a taxable gift or a taxable inheritance on or before 31 October in the relevant year and imposes an obligation on a person to deliver a return if requested to do so by the Revenue Commissioners, even if no benefit has been received. A donor of a gift or a disponer in relation to a discretionary trust must make a return to the Revenue Commissioners in certain circumstances.

The section also contains provisions dealing with the payment of tax by means of instalments and by means of Government securities and the inspection of property and records.

The period within which the Revenue Commissioners can make enquiries or authorise inspections is being restricted to a period of 4 years from the date of receipt of the return. This will not apply where fraud or neglect is involved.

Details

(1) A reference in the section to a gift or a taxable gift generally includes a reference to an inheritance or a taxable inheritance, as the case may be and a reference to a donee includes a reference to a successor.

(2) Any person who is accountable for the payment of tax under section 45(1), or trustees of a discretionary trust to which the 6% and 1% charges apply, are obliged to deliver a self-assessed return and pay the relevant tax. The return must contain details of all the property comprised in the gift or inheritance, an estimate of the market value of such property on the valuation date and such particulars as may be relevant to the assessment of the tax.

(2A) For the purposes of subsection (2) (other than in respect of the 6% and 1% charges), where the relevant date occurs —

• in the period from 1 January to 31 August in any year, tax shall be paid and a return shall be delivered on or before 31 October in that year, and
• in the period from 1 September to 31 December in any year, tax shall be paid and a return shall be delivered on or before 31 October in the following year.

(2B) Subsection (2A) will only apply in relation to tax to be paid and returns to be delivered as respects valuation dates arising on or after such day as may be appointed by an order made by the Revenue Commissioners. (The 14th June 2010 is appointed as the relevant day – see Capital Acquisitions Tax Consolidation Act 2003 (Section 46(2B)) (Appointed Day) Order 2010.)

(2C) In the case of discretionary trust tax , returns shall be delivered and tax paid within 4 months of the valuation date.

(3) Tax can be paid by instalments or by way of transfer of qualifying Government securities. Where tax is being paid by instalments, the obligation which an accountable person has to pay tax will be met if he/she pays the tax and interest which is due at the date of the assessment as well as paying the further instalments of tax and interest when they fall due.

(3A) A return to be delivered in accordance with subsection (2A) must be delivered electronically except where a relief or an exemption (other than the exemption for small gifts in section 69) is not being claimed and the interest taken by a person is an absolute interest which is not subject to any conditions or restrictions.

(4), (5) With regard to any person who is primarily accountable for the payment of tax, the rule is that he/she is obliged to deliver a self-assessed return when, if the total taxable value of all gifts or inheritances taken by that person, which have the same group threshold as the current gift or inheritance, exceeds 80% of his/her tax-free threshold (known as the “threshold amount”) or when he/she is required by notice in writing to deliver a self-assessed return. When required by notice in writing to deliver a return, the person primarily accountable must comply with the requirement within 30 days of the date of the notice.

(6) [This subsection has been deleted by section 147 of the Finance Act 2010.]

(7)(a) The Revenue Commissioners have the right to serve notice on any accountable person requiring him/her to furnish particulars and evidence which they consider relevant to the assessment of tax in respect of a gift or inheritance. The person who is accountable for the payment of tax must comply with the requirement within 30 days of the date of the notice.

(7)(b) Any authorised officer of the Revenue Commissioners has the right to inspect any property comprised in a gift or inheritance, and any books, records, accounts or other documents relating to any property which may be relevant to the assessment of tax.

(7A) The period within which the Revenue Commissioners can initiate enquiries or authorise inspections under subsection (7)(a) or (7)(b) is being restricted to 4 years from the date of receipt of a gift, inheritance or discretionary trust tax return. This provision came into effect on 1 January 2005.

(7B) The restriction referred to in subsection (7A) does not apply where fraud or neglect is involved. For the purposes of this subsection, neglect includes a failure to deliver a correct return. This provision came into effect on 1 January 2005.

(8) The Revenue Commissioners may serve a notice in writing requiring an accountable person who has already made a defective return to—

• deliver an additional self-assessment return,
• assess the correct amount of tax, and
• pay any outstanding amount due.

The person who is accountable for the payment of tax must comply with the terms of the notice within 30 days of the date of that notice. Provision is made for the payment of any additional amount due under the subsection by instalments or by the transfer of Government securities to the Minister for Finance.

(9) Any person accountable for the payment of tax who has already delivered a defective return must, within 3 months of becoming aware of the defect—

• deliver an additional self-assessed return,
• assess the correct amount of tax, and
• pay any outstanding amount due.

Provision is made for the payment of any additional amount due under the subsection by instalments or by the transfer of Government securities to the Minister for Finance.

(10) A payment of tax (other than a payment of tax by means of the transfer of Government securities to the Minister for Finance) by a person who is accountable for payment of tax in respect of an assessment of tax made by him/her must accompany the return and be paid to the Collector-General of the Revenue Commissioners.

(11) An assessment or payment of tax, made under the provisions of the section by a person who is accountable for the payment of tax, must include interest payable in accordance with section 51.

(12) Any person must, if required by written notice to do so, deliver a return within 30 days of the date of the notice, showing details of every taxable gift or inheritance taken by that person during the period specified in the notice or, as the case may be, indicating that that person has taken no taxable gift during that period.

(13) A disponer of a gift or inheritance to which subsection (14) applies is obliged to deliver a return where the Revenue Commissioners issue a notice to him/her, within such time as may be specified in the notice —

• of all the property comprised in the gift on the valuation date,
• of an estimate of the market value of such property on the valuation date, and
• of such particulars as may be relevant to the assessment of tax in respect of the gift.

(14) The obligation to make a return will arise under subsection (13) if the total taxable value of all gifts and inheritances taken by the donee from the same disponer on or after 5 December 1991 exceeds 80% of the relevant group threshold applying to the gift or inheritance. This obligation arises even though a disponer has not been requested by the Revenue Commissioners to deliver a return.

(15) A disponer who is resident or ordinarily resident in the State on the date the trust was created is obliged to make a return to the Revenue Commissioners within 4 months of the creation of a discretionary trust of—

• the terms of the discretionary trust,
• the names and addresses of the trustees and objects of the discretionary trust, and
• an estimate of the market value of the property becoming subject to the discretionary trust.

(16) A non-Irish domiciled person will not be treated as resident or ordinarily resident in the State on the date the trust was created unless that person has been resident in the State for the 5 consecutive years of assessment immediately preceding the year of assessment in which that date falls.

Relevant Date: Finance Act 2015